Cyber attacks have increased on major crypto exchanges, and many are concerned about legal liability under the upcoming crypto bill
Every month, roughly two Distributed Denial of Operations (DDoS) attacks occur at Zebpay, one of the country’s oldest and largest cryptocurrency exchanges, when cyber criminals overload the exchange’s servers to disrupt service or probe for a vulnerability in the platform’s defences.
The most serious security threat that Zebpay and other prominent exchangers confront on a regular basis is sophisticated criminal frauds that combine social engineering with computer intrusion..
Consumers are being duped into allowing cyber criminals access to their cryptocurrency wallets by impersonating or spoofing social media identities.
Not only investors, but also cyber criminals, appear to be flocking to cryptocurrency exchanges, which have seen a twofold spike in the number of cyberattacks in recent months as crypto currencies have repeatedly reached all-time highs.
Some of the world’s largest exchanges are hurrying to put in place a framework and robust systems and protocols to protect themselves against cyberattacks, fearing that forthcoming cryptocurrency regulation may make them liable for investor losses.
Some exchanges have also sought legal advice to determine their liability in the event of investor losses as a result of cyberattacks.
Even in circumstances where cyber criminals are able to gain unauthorized access to customer’s crypto wallets.
According to sources, every major exchange has been hacked at least twice in the previous month, and many investors have lost their crypto holdings when their wallets were hacked.
Exchanges have beefed up their cyber protocols and systems to combat the most popular attack methods, but flaws still exist, and hackers continue to find new ways to target exchanges and investors.