Why Crypto Exchanges, Digital Wallets, and NFTs Need to Increase their Security Measures

Virtual currencies, or cryptocurrencies, are continuing to become more popular. This is despite the unpredictability of its value, concerns about its carbon footprint, and increasing regulatory challenges.

Digital currency refers to a digital currency. It can also be called cybercash, digital money, electronic money, or electronic currency. With its accessibility, many traders and investors are on the lookout for how they can achieve real time fraud prevention

For the potential value of cryptocurrencies, people with digital wallets, mainly traders and investors, now need mobile applications with robust security. They also need a much stronger customer authentication to ensure a secure withdrawal and monitor online transactions.

With the popularity of this, investments are also popular. Scammers and fraudsters use this opportunity to create fake websites promising a high ROI (return on investment) and quick profits. The scammers promise greater returns for large deposits. Once they have robbed enough money, the fraudster disappears, leaving no trace to help the victim track them down and recover their money.

Another type of scam you should be aware of if you have crypto is blackmailing and extortions. Fraudsters may claim to have records of victims’ alleged illicit activities and threaten to release them if they don’t cooperate. They will either demand the victim’s private keys or force them into transferring crypto.

Service providers may strengthen their cryptocurrency security by implementing MFA methods such as passwordless authentication. FIDO2 biometric authentication is a way to provide strong protection by storing crypto assets in digital wallets. LoginID, an authentication solution that connects to the FIDO2 protocol, allows companies to protect user accounts and resources while maintaining data integrity.

FIDO2 passwordless authentication solves online verification issues in many channels, browsers, operating systems, and devices. It replaces passwords with seamless user verification and biometric authentication and prevents fraud and hacking.

Threats like this are not only happening in the crypto field but also in the e-commerce industry. Just like in a digital wallet, e-businesses must come up with e-commerce fraud prevention solutions. 

For more details about this matter, see this infographic from LoginID.