Deloitte Warns against Bitcoin Wallet Thieves, Others

Asides Bitcoin transactions being irreversible and the prices volatile, Tope Aladenusi, Partner, Cyber Risks Services, Deloitte West Africa, has warned that ‘Bitcoin wallet thieves’ and ‘Bitcoin-mining malware’ are out there to unleash terror on users.

Aladenusi sounded the note of warning during a #DeloitteCyberOutlook  TweetChat session on 2017 Nigeria Cyber Security Outlook, adding due to its anonymous feature, people feel bitcoin is secure.

Here are other tweets captured by Nigeria CommunicationsWeek.

1. Cryptocurrencies are digital currencies that use encryption techniques to generate its currency

2. There are several cryptocurrencies but one currently stands out - Bitcoin.

3. According to Financial Times, Bitcoin was the best performing currency of 2016

4. Bitcoins, also referred to as BTC is a cryptocurrency created in 2009 by an unknown alias “Satoshi Nakamoto”

5. Transactions are done with no middle men i.e. no banks and no need to show real name in some instances.

6. Bitcoin mining is the process of adding transaction records to Bitcoin's public ledger of transactions.

7. Bitcoins are stored in a digital wallet, which could be in either the cloud or on a user’s computer.

8. The wallets contain a public key that is used to receive bitcoins (similar to a bank account number)

9. Bitcoin Exchange like the Nigerian Stock Exchange allows buying or selling of bitcoin using different currencies

10. Two important things to note about bitcoin: transactions are irreversible and bitcoin prices are volatile  

11. Because of Bitcoin’s anonymous feature, people feel bitcoin is secure

12. Bitcoin’s protocol itself might be secure but this doesn’t necessarily extend to the wallets

13. Bitcoin wallets could be stolen

14. The lack of a central authority that regulates bitcoin is seen as a strength, but could also be a weakness

15. No widely known way to ensure that bitcoin exchanges comply to leading standards of trustworthiness and security

16. Bitcoin exchanges could be compromised

17. One notable security related issue was with Mt. Gox

18. Mt. Gox was a leading bitcoin exchange service that lost bitcoin worth $468m

19. Bitcoin being globally accepted and decentralized makes it attractive to everyone hence its increased adoption.

20. Because of its increased eminence, more prominent businesses around the world are now accepting Bitcoin.

21. Just as everything online has threats, there are Bitcoin wallet thieves and Bitcoin-mining malware out there.

22. As users are interested in bitcoins for its features, criminals are also interested in the Bitcoin

23. The anonymous nature of Bitcoins make it a potential instrument for money launderers and cyber criminals.

24. The payment option for most ransomware attacks is via Bitcoins

25. Ponzi schemes have also started leveraging Bitcoins

26. The payment option for most ransomware attacks is via Bitcoins

27. The future of Bitcoin is still uncertain, it is an unregulated currency but that may begin to change

28. Reuters reported that there was fall in BTC after China announced it had begun investigating Bitcoin exchanges

29. In Nigeria, the regulators have set up a committee to take a look at Bitcoin

30. A preliminary position on Bitcoin should be communicated shortly by the committee

31.  Here are some tips in keeping your bitcoin services such as your wallet, Bitcoin exchange secure

32. Ensure you enable at least 2 Factor-Authentication (2FA) e.g password & token, when using an online Bitcoin service

33. Always make frequent backups of your Bitcoin wallet

34. Ensure the confidentiality of your Bitcoins keys

35. To learn more about Bitcoins, you can reach out to us at Deloitte; we can connect you with our in-house experts.

The conversation was the second in a 4-part series that focus on each key component of the 2017 hosted by hosted by #DeloitteCyberOutlook.