Will Blockchain’s Time-Stamped and Immutable Data Bolster the Fight Against Crypto Cyber Crime?

Colleagues, China has become one of the first countries to recognize Blockchain-based smart contracts as legally binding evidence. Moreover, the PRC has opened two courts dedicated to processing Internet and cybercrime. These moves would appear to strengthen crypto cyber security in both domestic and cross-border transactions. The UK Law Commission reported in July 2018 that it has launched a research project to assess the legitimacy of smart contracts as well. Meanwhile, the American Bar Association (ABA) views recognizes Blockchain-based smart contracts as a “disruptive advancement” which have the potential of transforming the legal system. Surely, there is a vocal minority in the global crypto ecosystem who view such measures as a hindrance to cryptocurrency adoption. By contract, we believe that collectively these initiatives will have two positive outcomes. First, enhanced security in cryptocurrencies and the Blockchains that enable them. Second, improvement in consumer and institutional confidence in cryptocurrencies. Send us your assessment while visiting us today! Lawrence – Cyber Security Defender (https://cybersecuritydefender.blogspot.com/) 

IBM to join the parade of Blockchain-based payment systems vendor … with what level of security?

Colleagues, two of the greatest value propositions Blockchain offers the established financial and banking system is faster transaction speed accompanied by lower OPEX. This is especially appealing for trans-border payments. IBM’s World Wire joins the ranks of RippleNet, Ant Financial and GMO in this enticing market niche. The key players will likely tout their systems at the up-coming Sibos fintech conference in Australia this October. These systems are based upon on model integrated into a bank’s existing systems, fiat currency is exchanged into a digital asset at bank A which in turn is transferred to bank B where it is converted back into a second fiat currency. Sounds attractive, indeed. Bottom line: There are three critical success factors needed for this process to be commercially viable. They have speed and can reduce OPEX, but with what level of security … which is the Achilles heel of all Blockchains in the banking sector and beyond. We will closely monitor the aforementioned vendor’s system and report this fall. Send us your assessment while visiting us today! Lawrence – Cyber Security Defender (https://cybersecuritydefender.blogspot.com/)  

Which steps can Internet browser vendors take to reduce cyber crypto mining attacks?

Colleagues, crypto jacking has become a monumental cyber challenge for cryptocurrency mass adoption. Most crypto jacking attacks target Chrome, Firefox, IE and Safari browsers by adding nefarious scripts, which perform illicit mining unbeknownst to end-users. The Google Play Store and Apple App Store have implemented policies to remove suspicious apps from their online stores. However, this is just one small step. Google, Apple, Microsoft and the Mozilla Foundation all need to proactively integrate tools, which will prevent scripts and related adware. Moreover, a more user-friendly method for automatically pushing security patches to mobile devices and laptop-desktop computers alike. Bottom line: The security and browser software firms have some of the best minds on the planet within the ranks of their employer. We need something comparable to a moonshot commitment to innovate security protection rather than constantly play catch-up to cyber criminals if the cryptocurrency ecosystem is to achieve the credibility needed by investors small and large. Send us your assessment while visiting us today! Lawrence – Cyber Security Defender (https://cybersecuritydefender.blogspot.com/)  

Can Japan’s National Police Agencies’ New Software Security Tool Reduce Crypto Money Laundering?

Colleagues, it is common knowledge that money laundering is bonanza for crypto cyber criminals. The Japanese NPA has decided to fund the development of AML software by a private sector security firm. Japan is home to some of some prominent crypto exchanges including Coincheck, BitOcean, Bitarg, Zaif and GMO Coin. With cyber-attacks on both crypto exchanges and users, running rampant Japan is on the bleeding edge of cyber enforcement … not by choice, rather by necessity.  The NPA reported some 170 cases of suspected crypto crime during a mere six-month period in 2017 alone.  Does this strategy represent a silver bullet for resolving the crypto AML dilemma? Not at all. It is, however, one more important counter-measure to protect the global crypto ecosystem. We expect other nation’s securities and law enforcement agencies to fund similar tools in an effort to gain an upper hand against the crypto cybercrime contagion. Send us your assessment while visiting us today! Lawrence – Cyber Security Defender (https://cybersecuritydefender.blogspot.com/) 

Crypto-Mining Cyber Attacks Continue to Be the Weakest Link in the Cryptocurrency Ecosystem

Colleagues, following high profile cyber security breaches against CoinSecure and CoinCheck earlier this year, crypto-mining attacks have skyrocketed in 2018 representing a plague on the global crypto ecosystem. In its Mid-Year 2018 Security Report TrendMicro states “We also detected a significant number of new cryptocurrency miner malware families, showing that cybercriminals remained keenly interested in profiting from digital currencies.” The Necurs exploit kit, CVE-2017-10271 via port 7001/TCP and Web miner script in AOL ad platform are some of the more notable cyber security used by crypto-miner attackers. Moreover, while cyber-attacks related to crypto mining far outpace other types of attacks, direct attacks against crypto exchanges are on the rise. Where does this leave the integrity of the global cryptosphere? Bottom line: The nature and rise in these attacks will continue to hinder the mass adoption of cryptocurrencies around the world. While far easier said than done, cryptosphere security needs to take a quantum step forward to gain and maintain a proactive advantage over the crypto threat juggernaut. Share your assessment while visiting us today! Lawrence – Cyber Security Defender (https://cybersecuritydefender.blogspot.com/) 

NASAA Regulators Zero In on Securities Fraud – What is the Impact of Operation Cryptosweep?

Colleagues, Operation Cryptosweep (aka “OC”) is a joint effort of regulators from the US, Mexico, Puerto Rico, Canada and the US Virgin Islands targeting unregistered ICOs and related securities fraud. Overseeing OC is The North American Securities Administrators Association (NASAA). At is core is the US SEC’s Cyber Taskforce which was launched in September 2017. To date OC has led to some 200 crypto-related investigations. Bottom line: While we support the appropriate regulation of the cryptosphere the question of OC’s effectiveness is more than valid. Noteworthy exceptions to the list of member states are Caribbean nations known for money laundering and non-transparent offshore bank accounts. Antigua and the Cayman Islands are top of mind. Bottom line: The OC will have a positive effect on reducing crypto-related securities and ICO fraud, however, further attention needs to be given to other countries known for their nefarious roles in the broader crypto economy. Share your assessment while visiting us today! Lawrence – Cyber Security Defender (https://cybersecuritydefender.blogspot.com/) 

Will Iran’s State-Backed Cryptocurrency Enable the Country to Evade US Economic Sanctions?

Colleagues, Iran has taken a major step toward the creation of a state-backed cryptocurrency. The primary goal of this effort is assumed to be the country’s circumvention of new US economic sanctions in the wake of US President Trump revoking support of the Iran nuclear arms accord in May 2018. Work on a national cryptocurrency dates back to late 2017 when the US President re-affirmed his campaign promise to revoke the accord and re-impose stiff trade sanctions. This initiative has the backing of Iranian President Hassan Rouhani and is led by their National Cyberspace Center. Back in January 2018 the US Treasury issued a severe warning against Iran’s use of cyber warfare and development of a cryptocurrency for this very reason. Bottom line: Iran, Russia and Venezuela has announced plans to develop digital currencies for the purpose of evading Western (aka US) trade sanctions. Transaction “transparency” is a vital factors in whether their efforts will be successful at essential protecting nefarious money laundering activities. We assume the currencies which be intentionally designed to avoid detection by the US and its allies. Details to follow in the coming months.

Share your assessment while visiting us today! Lawrence – Cyber Security Defender (https://cybersecuritydefender.blogspot.com/)  

Will social media-based payment tools allow for “secure” cryptocurrency transactions and fundraising?

Colleagues, Google Pay, Alipay, WeChat Pay and Facebook Payments are among the most popular tools for online payments, money transfers and fundraising. Each tool is confronted with the dilemma of whether to accept cryptocurrency transactions. The Chinese Banking Regulatory Commission and the People’s Bank of China have release strong warnings against the so-called “crypto payments model”. In the US Google Pay and Facebook Payments are faced with similar challenges. They are global platforms and what is acceptable in one country or region may be prohibited elsewhere. The potential security risks are numerous – exchange fraud, money laundering, lack of transaction transparency along with the fundamental integrity of many second and third tier cryptocurrencies are bona fide concerns among government regulators, platform vendors and users alike. There is no “one size fits all” solution. Bottom line: We see marriage of online payment tools and cryptocurrencies as yet another ‘test’ as cryptos seek mass market adoption. Like other crypto related challenges we do believe that in time such issues will be resolved … although for now no one knows the precise solution. Share your thoughts today! Lawrence – Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com/) 

How can Blockchain be used to secure digital documents and transactions in the public sector?

Colleagues, with good intensions the Japanese, Chinese, American and British governments are exploring the use of Blockchain to securely maintain and transmit documents containing sensitive information about their citizens. The latest example of the UK’ Ministry of Justice assessment of Blockchain for protecting its repository of digital forms of evidence. In the US Blockchain represents a means of securely processing records for Social Security, Medicare and other entitlement programs. Noble endeavors indeed. Nevertheless, the obvious dilemma is that such data and documents needed for smooth government processes will only be as secure as the Blockchains used to manage them. Protecting cryptographic keys remains a top concern. Using hardware security modules (HSMs) and trusted computers in place of digital wallets and as Blockchain nodes will give security-conscious users and organizations greater confidence. As reported by McKinsey and Company recent breaches of crypto exchanges clearly indicate that Blockchain participants and their access to the Blockchain represent a security weakness that must be addressed before the technology. Bottom line: As we have previously reported Blockchain adoption will be directly correlated to the level of both perceived and actual security. Such security is likely to increase as the technology matures. Share your assessment while visiting us today! Lawrence – Cyber Security Defender (https://cybersecuritydefender.blogspot.com/)  

What would be the impact of securing the Siacoin Distributed Storage Protocol have on Crypto Mining?

Colleagues, the global cryptosphere is rigorously debating the security of the Siacoin Distributed Storage Protocol (aka the Siacoin Blockchain). More security translates into higher trust and integrity of the platform … right? The answer depends on which segment of the crypto ecosystem you ask. The new security code would fork Siacoin and in turn disabling mining products offered by Bitmain and Innosilicon. At press time we are waiting for Nvidia and AMD to weigh-in on this matter. Both companies have seen demand for their mining ASICs slow during H1 2018. So what is the end goal? Some would say driving increased capacity around the world to create a data storage marketplace that is more reliable and lower cost than traditional cloud storage providers. Our view is that this inevitable debate represents just one more growing pain as cryptocurrencies and their underlying Blockchains mature. The issue will get resolved and yes there will be winners and losers. More to come. Share your assessment while visiting us today! Lawrence – Cyber Security Defender (https://cybersecuritydefender.blogspot.com/)