How Does Cryptocurrency Affect Cybersecurity?

Anything that combines new, complex, evolving technology and finance should raise warning flags for all who take responsibility for protecting their business. As premier providers of NJ Cyber Insurance, we focus on mitigating the risks and potential harm cyberattacks cause, as our many blog posts on the topic shows. 

Cryptocurrency is a medium of exchange in the form of a digital asset. It uses a type of computer code called cryptanalysis or cryptography to provide additional security when making transactions to send and receive electronic payments.

Not long ago, cryptocurrencies were dismissed as a fad. The technologies that underpin them are making growing, significant changes to the lives and businesses dependent on the digital landscape. Experts and laypeople alike must understand the impact of bitcoin on cybersecurity to combat its illegal uses. 

Governments Just Starting to Address Cryptocurrency. 

A significant problem with this form of currency is that most governments and regulators don’t have suitable structures for managing and governing cryptocurrencies, making them exploitable and valuable for cybercriminals. However, cryptocurrency is beginning to make inroads into recognition and use by national governments.

The Australian government now recognizes digital currency as a legal payment method. Japan approves of Bitcoin as a legitimate currency, and other nations are slowly beginning to incorporate cryptocurrency into their systems.

The Upside of Bitcoin Blockchain Technology.

Because Bitcoin uses blockchain technology, a decentralized system, it has practical applications for addressing cybersecurity problems. Although its initial mission was verifying transactions using digital currency, its features offer the potential to secure technology and strengthen cybersecurity measures dramatically. 

Blockchain is a decentralized and offline system, making it more secure in protecting its system than the standard procedures in our current systems that hackers find easy to exploit. Cybercriminals have multiple attack points on their targets as they sit vulnerable in known locations. Most data systems and networks have multiple weak points that hackers eventually and often easily overcome.

Because blockchain duplicates a distributed database over a massive network, instead of storing data in an individual location as with traditional files, blockchain is difficult to access and thus harder to hack. Due to its structure, there is no single failure point in blockchain, and equally important is that no single entity can control it. As such, blockchain technology can improve security systems in law, finance, and politics.

The Downside of Cryptocurrencies.

By now, the public is aware of ransomware attacks and how they can affect the everyday lives of millions of people. The attack on the Colonial Pipeline in May 2021 was the top story for days as the company shut down more than 5,000 miles of pipeline along the Eastern Seaboard, forcing gas shortages across the region. It was wake up to businesses large and small that their systems were vulnerable to cyberattacks.

Cryptocurrency appeals to crooks because it is easy to exchange convertible digital assets online with a computer or mobile device to engage in sending and receiving fast payments without the transaction fees that traditional banking and financial transaction systems charge. The semi-anonymous nature of cryptocurrency transactions is even more enticing, which opens users to scams only limited by criminal imagination. Cyber crooks also use a money-laundering tool to shelter illegal activities that result in transferring money and value secretly.

How to Protect Your Business from Cybercriminals?

The frequent news about cyberattacks shows the trend is strong and growing. Now with remote working becoming the norm, more companies than ever are vulnerable to hackers. And the threat is just as severe for small operators, even solo entrepreneurs, as it is for mid to large-size companies. 

Now is the time to review how cyber insurance can protect your business. We design coverage to recover after a ransomware attack or data breach. Your coverage will provide financial support to settle damages and losses and help pay for legal fees and regulatory headaches. With us, your cyber insurance policy is unique to your business and industry needs. Our staff of seasoned independent agents will use their extensive industry contacts to secure comprehensive coverage at competitive rates for you.

About Dickstein Associates Agency

Dickstein Associates Agency has distinguished itself as a leading provider of personal and business insurance in the tri-state area since 1965. We pride ourselves on being advocates for our clients and providing them with quality and affordable coverages. As Trusted Choice™ independent insurance agency, we partner with various national and regional carriers, allowing for flexible coverage for each client’s unique circumstances. For more information on how you can leverage all your insurance to work best for you, and how we can secure the best insurance in the marketplace suited to your specific needs and business objectives, contact us today at (800) 862-6662 or www.dicksteininsurance.com.