Cryptocurrency exchanges should work together to deter hacking attacks, says CEO of Hosho Group

In order to deter the ever-increasing hacking attacks on their systems, cryptocurrency exchange platforms should deploy security protocols in coordination, opined Yo Sub Kwon, the CEO of Hosho Group, a smart contract auditing, and security firm.

Speaking at Bloomberg’s Sooner Than You Think event, Kwon said that most fraudsters, more often than not, funnel the funds stolen to other exchanges as a security measure. As the security measures and protocols of exchanges are different and exclusive, they essentially ‘help’ the hackers, he said.

Kwon further explained:

“The only way to counter this is to ensure that they work together and are aware of the security protocols. They should come up with a system that alerts any sudden huge deposits so that in case of a hack, the transaction can be tracked back.”

The CEO added that most attacks are fairly simple and do not involve any major technological element. Therefore, it is easy to secure the transactions if the exchanges work in tandem.

Reciprocating Kwon’s view, Stacy Scott, managing director of cyber security and investigations at Kroll, said that it is an ideal solution to the problem. According to her, most hacking attacks are untraceable because of the technology involved.

She said:

“Most hackers communicate through channels facilitated by exchanges or through social media. To track the perpetuators, the investigation team has to search through the trails left behind by the communication channels.”

Apart from working together, exchanges should educate users about the dangers involved, Scott said.

Kara Coppa, BLAKFX co-founder and COO, said that security in itself revolves around integrity, cooperation, and authentication. These parameters can be further strengthened if the exchanges work together and users will have a much secure environment, she added.