ASIC Warns of Cyber Security Risks and Urges Vigilance
Joe Longo, Chair of the Australian Securities and Exchange Commission (ASIC), has issued a warning about cyber security in the crypto industry. Longo emphasizes the need for ongoing security vigilance among all firms.
According to Longo, organizations must actively evaluate and manage third-party cyber risks. He believes that relying on third parties for cyber security without regular review is a serious weakness.
ASIC Highlights Complacency Among Firms
Longo’s statement draws attention to the growing trend of businesses relying on third parties for cyber security and data protection. He cites a recent ASIC survey revealing that nearly half of Australian businesses are at risk due to inadequate due diligence in dealing with third parties.
44% of respondents admitted to not managing third-party or supply chain risk, and over half lack sufficient capability to protect confidential information.
Longo outlines three principles for firms to safeguard themselves against vulnerabilities: ongoing evaluation, planning and testing for attacks, and awareness of potential threats.
Firms should avoid complacency and the belief that they have done enough to protect themselves.
Crypto Industry Faces Surge in Hacks
The crypto industry has experienced a significant increase in hacks, resulting in substantial financial losses. In July alone, there were more than 48 major crypto hacks, leading to approximately $165 million in losses.
Data from PeckShield indicates that the top five hacks accounted for 95% of the total stolen funds in July, amounting to $156 million. March also saw significant theft with over $200 million illicitly acquired.
In Q1 2023, Beosin reported 61 attacks and 41 rug pulls in the Web3 space, resulting in a cumulative loss of approximately $295 million.
Hot Take: Ongoing Vigilance is Crucial for Cyber Security in the Crypto Industry
The recent surge in crypto hacks highlights the pressing need for ongoing vigilance and proactive measures to protect against cyber threats. The ASIC’s warning serves as a reminder to businesses to prioritize cyber security and not become complacent in their defense strategies. Regular evaluation of third-party risks, planning and testing for potential attacks, and maintaining awareness of evolving threats are essential practices for safeguarding sensitive data and assets in the crypto industry. By staying proactive and remaining vigilant, companies can better protect themselves from cyberattacks and mitigate potential financial losses.
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