ISME April 2018

SME-Tech
that investors can protect
against them unlike the threat
to infrastructure. Here is a list
of the main frauds that might
threaten your security and
how to guard against them.
ICO Frauds:
There are two kind of ICO
frauds. An ICO is when
a new cryptocurrency is
launched in the market
to investors. This is an
unregulated activity and is
also targeted by scammers.
Scammers can target
investors in an ICO fraud first
by creating a fake ICO and
then by stealing money from
investors. There has been
an example of this kind of
fraud when the SEC had to
shut down the PlexCoin ICO.
It amounted to a 15 million
dollars fraud.
The second way that
scammers can target
investors is by impersonating
a legitimate ICO and the
tricking investors into paying
them instead of the real
company. Kik’s ICO is one
example of a company that
suffered this scam.
Security Tip:
Entrepreneurs must do a
complete research about an
ICO before investing on it.
One can also use the help of
industry insight and look at
sites like CoinDesk to verify
the legitimacy that is claimed
of an ICO. It is important that
one stay away from hard sell
tactics or something that
seems to be too good to be
true. The messages received
over social media and
emails need to be thoroughly
verified as this is where
phishing happens.
Fake Digital Wallets:
Cryptocurrency is stored
on virtual wallets. The fake
wallets appear online and in
mobile app stores and people
steal investors’ savings. The
bitcoin gold wallet scam is an
example that stole an amount
of $3million dollars.
Security Tip:
Entrepreneurs must use
services that have a solid
track record. One can also
use an offline hardware
wallet. These are some of the
safe wallets that one can use.
Bitcoin-Stealing
Malware:
Malware has been in the
technological business world
for a long time. There is an
emergence of a new malware
that specialises only in Bitcoin
stealing. This software can
steal log-in credentials, it can
steal the wallet itself or get in
the middle of a transaction.
Security Tip:
Entrepreneurs who want to
protect themselves from this
malware need to use a strong
anti-virus and an inbound/
outbound firewall to protect
one’s system. It is also
important that one uses a two
factor authentication and a
password manager to secure
the log in of a system.
The world of cryptocurrency is
full of risks. It is important that
entrepreneurs do not forget
to take protective measures
before deciding on getting into
it. The cryptocurrency world is
mostly unregulated. This is the
charm of cryptocurrency and
also something that is a threat
to investors. Entrepreneurs
must understand why they
want to deal with bitcoin in the
first place. Is it really worth
risking security? If the answer
is yes, then arm yourself with
the best security protection and
explore the promising world of
cryptocurrency. Take added
measures and do not forget to
update your security measures
as per the need. This will help
you explore without worry.
SPI thinktank
initiative
The
excitement of trying
out a new technology
that promises business
benefits always
throws caution in
the air. Same is the
case with Blockchain
technology and
Bitcoin.
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