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'Hacks Can Be Prevented If Companies Test Product Before Launching' - Consultant

© REUTERS / Kim Hong-JiMen talk in front of an electric board showing exchange rates of various cryptocurrencies at Bithumb cryptocurrencies exchange in Seoul, South Korea, January 11, 2018
Men talk in front of an electric board showing exchange rates of various cryptocurrencies at Bithumb cryptocurrencies exchange in Seoul, South Korea, January 11, 2018 - Sputnik International
Japanese cryptocurrency exchange Coincheck Inc. has announced its intention to repay nearly $425 million that it lost in virtual money. The announcement comes as nearly three hundred thousand users were impacted after 523 million NEM coins were stolen. Radio Sputnik spoke with Fow Chee Kang, a cyber security consultant, about this issue.

Sputnik: With cryptocurrencies experiencing such a global boom, do you think cyber theft will become a serious issue for cryptocurrency users? How vulnerable are crypto exchanges to hacks?

Fow Chee Kang: You have to consider putting your crypto currencies into coin wallet I would advise because in that case your currencies will not be connected to the internet, which means the hackers will get their hands off your currency. If you want to do investments on exchanges, I will advise you to get, for example, to go on to the exchanges, they are testing every time they are launching their product into the market. 

READ MORE: Japanese Cryptocurrency Exchange to Repay Owners $425 Million Stolen by Hackers

Also of course as cryptocurrency users you should also consider having two factors of identifications enabled and also put into consideration having extra authentication methods to your exchanges or your wallet on the exchanges.

Sputnik: What measures can be taken by governments or even just cryptocurrency exchanges to ensure better security and regulation?

Fow Chee Kang: The government should enforce the exchange companies to secure their digital perimeters by enhancing their regulations to have the exchange companies comply to certain requirements. What I mean by digital perimeters is the exchange companies’ infrastructures, service, applications and devices; whereby all this infrastructures’ applications shall be tested by a trusted cyber fund to make sure that all this is secured before it can be used by the users.

READ MORE: Japanese Exchange Loses Record $530 Million in Cryptocurrency

Of course, from the cryptocurrency exchanges they should have to take the initiative to test their products before they are launched into the markets, so long story short — I can say all hack cases can be prevented if they perform penetration testing on their applications and their infrastructure.

Fow Chee Kang, is an associate director and cyber security managing consultant at LGMS, the professional info security service firm from South Asia, specialized in Computer crime investigation, penetration testing and various info security compliance.

The views and opinions expressed by Fow Chee Kang are those of the speaker and do not necessarily reflect those of Sputnik.

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