Security Briefing: Can ETFs get hacked?
A PSA about North Korean hackers has many in the bitcoin community wondering about spot ETFs. Let's dive in...
Are North Korean hackers a threat to bitcoin spot ETFs?
Do North Korean hackers have underlying bitcoin ETF holdings in their crosshairs?
Last week, we discussed a new advisory from the FBI on North Korean hacking groups and their focus on crypto, and this week, there's been some dialogue about whether ETFs could be vulnerable.
Cointelegraph published a deep dive Wednesday into ETF hacking risks in which it interviewed Jameson and other experts.
Why is this attack vector worth considering? Bitcoin and ether are bearer assets. If hackers get ahold of the keys tied to a particular address, they get the assets, regardless of whether they're tied to an ETF or not.
The bitcoin network doesn't have any of this prior knowledge — it only knows if a cryptographic signature is valid in a transaction. And that's a world of difference.
🔑 Key Insight: In security, we strive to eliminate single points of failure. Today, ETFs hold close to 5% of the current bitcoin supply, but the bulk of it is held with one custodian. Read why that could be problematic in the below overview from earlier this year.
FBI: Crypto-related fraud losses increased 45% in 2023
The FBI had more to say this week, releasing its Cryptocurrency Fraud Report for 2023. The report contains an analysis of more than 69,000 complaints submitted to the bureau's Internet Crime Complaint Center.
Together, the complaints included a total of $5.6 billion in reported losses, a 45% increase from 2022.
What tactics are the fraudsters using? Here's a breakdown of the top 5 crime types with investment scams being the most common, representing 71% of total losses.
The FBI noted that while the number of crypto-related complaints comprised only 10 percent of overall financial fraud complaints, they represented 50% of losses.
🔑 Key Insight: As a reminder, here are three potential signs of a scam to watch for:
- Someone reaches out to you unsolicited ("Hey, how are your trades doing?")
- They tease large, seemingly unreasonable rewards ("I know the perfect way to 10x your position.")
- They convey a sense of urgency ("I need the bitcoin right now.")
Remember, if it sounds too good to be true, it probably is.
Protect your bitcoin from SIM swaps with Efani: A Casa partner spotlight
Your security is only as strong as your weakest link. While Casa helps you protect your long-term bitcoin with multisig, there are other layers in your security to monitor and your phone number is one of them.
SIM swaps are a pesky threat targeting crypto investors where a hacker can trick your carrier, hijack your phone number, bypass your 2FA, and drain your important accounts including exchanges. But Casa's newest partner Efani can help you stop them in their tracks.
Efani's 11-layer client authentication protocol and mandatory 14-day cooling off period deliver comprehensive protection against unauthorized port-out requests. Now, Casa members can lock down their number with a discount on an Efani membership. Get yours now.
Team Casa
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