Australian Regulator Issues Another Warning About Mounting Crypto Hacks Scams

Recently, the cryptocurrency industry has experienced an alarming increase in cyberattacks. Joe Longo, the esteemed Chair of the Australian Securities and Exchange Commission (ASIC), has brought attention to this escalating issue, highlighting the need for relentless security vigilance across all firms.

Third-Party Risks and Over-Reliance

A pressing concern Longo raised is businesses’ growing dependence on third-party entities for their cybersecurity needs and vital data safeguarding. Such an approach, if left unchecked, poses a significant vulnerability.

Drawing from a recent ASIC survey, he reveals a startling statistic: nearly half of the businesses in Australia could be in jeopardy. These companies, alarmingly, neglect due diligence while collaborating with third-party providers concerning cybersecurity challenges.&

“Remarkably, 44% of participants admitted to inadequate third-party or supply chain risk management. A staggering majority displayed a lack of competence in preserving confidential data,” Longo remarked.

Guiding Principles for Enhanced Security 

Longo underscores three foundational tenets for firms to bolster their defenses:

1. Continual Vigilance: Companies should adopt the mantra of “never set and forget”. Establishing security measures isn’t a one-time affair; it requires consistent monitoring and adaptation.
2. Preparation & Testing: Prepare for potential cyber threats and routinely test defenses. Only through simulation can weaknesses be identified and addressed.
3. Awareness is Key: In cybersecurity, ignorance isn’t bliss. As Longo aptly puts it, “One can’t shield what remains unknown.”

It’s crucial to dispel the dangerous misconception of absolute security post-implementation. Longo cautions against the sense of complacency that can set in after initial protective measures are in place. “Believing you’ve ticked all the boxes and needn’t be concerned further is a grave error.”

A Snapshot of Recent Crypto Hacks

July witnessed over 48 significant crypto hacks, translating to roughly $165 million in losses. Data from PeckShield, a prominent blockchain security agency, reveals that 95% of July’s stolen funds ($156 million) resulted from the top five most devastating hacks.

Furthermore, July only trailed March regarding cryptocurrency thefts, with March seeing unauthorized acquisitions surpassing $200 million.

The trajectory of crypto-related thefts is concerning. Stemming this tide demands robust countermeasures, and the industry must rise to this challenge.

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