The world of crypto is one that some people have embraced enthusiastically, recognising the enormous potential and convenience that it can offer, not least for those who often travel between different jurisdictions and would rather not have to deal with the time and expense of changing currencies.
However, not everyone feels so enthusiastic about it. Some might understandably feel cautious about crypto, especially if they don’t have a lot of knowledge about it. The idea of a currency not linked to a government or central authority, or controlled by any central bank, is a novel one that might leave a few people nervous about what all that means.
The latter concern could be answered by the fact that the UK government is already drawing up plans to regulate crypto assets, which in turn could help Britain become a major player in the emerging crypto world.
The Cyber Threat
However, there is also the concern that as crypto assets are digital, they could be vulnerable to fraud and theft.
The first answer to this is that most of the pounds and pence in the UK economy (and, for that matter, euros, dollars, yen, and all the rest of other currencies) are not represented in notes and coins. The days when you really would ‘pay the bearer on demand’ with a pound of sterling silver belong to centuries that nobody now alive was born in.
Because of this, the risk is already there in terms of cyber criminals who would try to access bank accounts online, con people out of money, or trick folk out of their savings. Moreover, IT systems designed to be robust in matters like accounting have not always been fully reliable – hence the Post Office scandal currently playing out in the UK.
The good news is that banks and companies operating payment systems have worked very hard to keep financial data safe. New technology has been developed and refined many times to stay one step ahead of the crooks.
For Volta Card users, this itself may provide some assurance, since the need to cover card transactions is already evident among standard credit cards using recognised national currencies and is backed by a significant security apparatus. It might seem obvious that the same would be true for a card using crypto.
In fact, in some ways, the situation is even better, with some of the most advanced security tech in play to secure crypto assets. This needs to be the case because there is no doubt that as crypto grows in importance, so will the potential for risk and the motivation for criminals to try to break through the security barriers.
Does Crypto Face A Unique Threat?
Highlighting this in an article last year, Exo Insight described many of the potential cyber threats in terms anyone knowledgeable about such issues will be familiar with, listing threats such as “hacking, phishing, ransomware attacks, malware, and social engineering.” However, it added, there are some more specific threats to crypto.
These will include any vulnerabilities hackers can find in smart contracts, digital wallets and even in Blockchain, which has been hailed as one of the great modern security innovations.
It added: “As cryptocurrencies evolve, so do the tactics and techniques employed by cybercriminals. Advanced persistent threats, nation-state attacks, and sophisticated hacking groups pose significant challenges to the security of cryptocurrencies.”
While this may be true, it is hardly news to anyone working with cyber security. New threats and the increasing prominence of certain malevolent actors (especially rogue states) are a security challenge to everyone, whether they use crypto or not. From the individual consumer to big companies and government organisations, the threat is real.
Similarly, the kind of solutions proposed for crypto were also the same as elsewhere: new tech and innovation, the increased use of multi-factor authentication, awareness of threats like phishing, the use of more robust hardware wallets and better use of passwords, strong regulation, and threat-sharing between organisations.
Hackers and extortionists will have their own motivations for their criminal acts, but when it comes to obtaining money, they may not necessarily care what sort of currency it is as long as they can extort it from your card.
At the same time, the digital nature of crypto means the emphasis on security will always be strong, while there is no legacy of less-secure methods of making transactions that are rooted in the past, unlike with pounds and pence where transactions can still be made in cash or even (though this is rare now) by cheque.
The Blockchain Question
Nothing in the article, therefore, pinpointed any specific sort of risk to crypto that was not commonplace elsewhere, except Blockchain. It is, therefore, worth considering this specific area and why it is very robust. Blockchain has multiple uses but is most critical for cryptocurrency, which could not operate securely without it.
The system works by creating a database that works differently from others, because data is set up in a series of blocks that are linked cryptographically. While it can be used in different ways, it can be utilised as a ledger for crypto transactions. Since no one entity controls it but collective control sits with the users, nobody should have the power to override it.
To try to break through, hackers are therefore left not with trying to unpick one lock, but lots, which without all the security data being held together is much harder to do. Add to that the encryption and it is extremely hard for any hackers to break through.
Of course, that will not stop some from trying, but it is another thing to say they will succeed. Moreover, the very security expertise that has gone into creating Blockchain will be working to refine it and improve it. Those who know the system best will be in the greatest position to understand any potential vulnerabilities and fix them before the crooks can find a way in.
In the meantime, you can be every bit as sure, if not more so, that the transactions you make with a Volta Card will be protected and at least as secure, if not more so, than using a normal credit or debit card.