A report from ICORating released Tuesday, October 2, revealed that 54% of cryptocurrency exchanges surveyed have poor security in at least one area of their system, leaving them and their users vulnerable to attack.
The report reviews 100 exchanges, with daily trade volumes over $1 million, various security standards including console errors, user account security, registrar and domain security and web protocols security. Despite crypto exchanges self-promotion of high security standards, many fail basic cybersecurity practices such as enforcing strong passwords.
This may come as a surprise to many exchange users and crypto-investors, after all too frequent disastrous hacks, “Over the past 8 years about 31 crypto exchanges have been hacked and more than 1 billion dollars (actually, $ 1.3 bn) stolen” according to the report. Most stakeholders would expect these exchanges to have taken adequate security measures, but this doesn’t seem to be the case.
Console error refers to errors in code that can result in malfunction of the exchange and problems for users. While the vulnerability is not generally critical, it can result in data loss. ICORating concluded 32% of exchanges have code errors, which leads to certain defects in operation.