Can Bitcoin be stolen? In the eyes of many investors, since Bitcoin transactions are recorded in the blockchain, and the blockchain is an open ledger that cannot be tampered with, how can it be stolen? Can't we get it back even if it's stolen? So, what can we worry about the security of my Bitcoin account? In fact, this is not the case. There are many similar cases. Therefore, as a bitcoin investor, we really need to pay close attention to the security of Bitcoin accounts.
Bitcoin is essentially just a string of characters on the blockchain, recording all the transaction records since the birth of the Bitcoin. Because the blockchain belongs to the decentralized structure, users declare their ownership through a public address and a key that only they know. To some extent, whoever masters the key will essentially own the Bitcoin assets in the corresponding address.
The tamper-proof feature of blockchain refers to that the transaction records of Bitcoin can not be tampered with, rather than that the key will not be lost. At the same time, just because the blockchain cannot be tampered with, once the key is lost, it means that it is impossible to retrieve Bitcoin by modifying the blockchain record.
Many investors trade bitcoin through exchanges and naturally deposit Bitcoin in the exchange account. Most countries and regions' virtual currency exchanges do not have the regulatory endorsement, nor online preventive measures such as capital deposit and virtual currency deposit, which means that if the exchange itself has a bad idea, "stealing" your bitcoin is just like finding things out. For example, on February 24, 2014, Mt. GOx, the world's largest Bitcoin exchange operator, announced that 650000 Bitcoins on its trading platform had been stolen, and then Mt. GOx declared bankruptcy. Later, law enforcement investigation found that only 7000 bitcoins were stolen due to hacker attacks, and the rest were taken away by insiders of the platform, which is a typical example of self-defense.
After all, the trading platform with bad intentions is a small number, and more stolen cases come from hacker attacks. Both the exchange's own key and the user's key are stored in the exchange's wallet system. If the system is broken by hackers, resulting in the key leakage, the bitcoin assets in it will naturally disappear. Considering that the strength of virtual currency exchange is very different and the importance of system security is also different, the event of losing currency caused by hacker attacks is not uncommon.
With the strengthening of system security protection of major exchanges, the probability of their own systems being hacked by hackers has declined significantly, and the theft of users' own trading accounts has become the main way to lose money. The connection between users and exchanges is mainly established by login name and password, just like the stolen bank card and the third-party payment account. If the login name and password of users are leaked, the virtual currency account will be stolen.
From the perspective of the exchange, in order to deal with the risk of account theft, just as the third-party payment enterprises will build a special fraud risk prevention and control system, and comprehensively use equipment fingerprint verification, location authentication, face recognition, fingerprint verification, user behavior habit analysis, original card in and out, transaction limit control and other means to further reduce the risk loss. In general, such measures as binding Google authentication, setting transaction passwords, opening login secondary authentication, withdrawing cash from the same card will be done to prevent fraud risks, so as to ensure that even if the login user name and password are disclosed, there will be no substantial loss.
For users, improving the awareness of risk prevention is the key. In addition to regularly changing passwords and not logging in the trading account on the shared computer, we should also cooperate with the platform's account security measures to improve the security level of the account and reduce the risk of capital loss.
Please note, that the article is a part of BTCMEX Blog, the views and opinions expressed here are the contributing author’s only, and do not necessarily represent the views of the company.
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