The security of crypto funds has been a matter of concern for the broader financial world since the advent of the DeFi economy. Authorities have consistently targeted the Web3 sector due to crypto exploits worth millions of dollars year by year.
In a rather ironical turn of events, the X account of the U.S. Securities and Exchange Commission (SEC) got compromised last month as the regulating agency had disabled two-factor authentication (2FA) feature on its social media account.
The hacker who accessed the X account in an unauthorised manner put out incorrect information about the issuance of spot Bitcoin ETFs.
The regulator later updated that X Support had disabled 2FA at the SEC staff’s request in July 2023 which led to the account getting compromised.
Quis custodiet ipsos custodes?
The incident only makes us more aware of the importance of crucial security features such as 2FA for all stakeholders, including exchanges, individual traders, and regulatory bodies.
Two-factor authentication (2FA) is a type of multi-factor authentication (MFA), an authentication method for accessing accounts or wallets.
2FA is a security feature as per which a user is required to authenticate their identity in two distinct, separate ways in order to gain access to an entity.
The entity can be a door, a banking account, or an email account.
Even though it’s a popular and common security practice, a lot of users don’t implement it out of sheer laziness. If a user uses the same password on multiple websites, they may be more vulnerable to password hacking than they think.
As mentioned above, we even saw a regulating body as prestigious as the SEC not implementing it.
But its importance is securing systems cannot be underestimated.
In fact, BitDelta itself recommends that you enable 2FA among an array of measures to secure your trading account.
2FA requires the user to submit two types of information before they can gain access to their account.
The information can be:
In most cases, a password is entered first, followed with any of the above information.
2FA is very helpful in cases when a password is exposed to an external party.
The party cannot gain unauthorised access to the account only with the password as another detail is also mandatorily required.
Most reliable platforms require users to implement 2FA so that the users’ accounts are completely secure.
Individuals use 2FA to secure their email accounts, online bank accounts, or DeFi wallets. Organisations use 2FA to securely keep the assets and other crucial details of their employees and customers.
In order to gain access to online networks and databases, many corporations use 2FA. For example, employees may be asked to input a second code to log into the remote workstations to work outside the office.
The main benefits offered by 2FA are:
To say that 2FA is completely safe and keeps your account or wallet secure against all vulnerabilities would be an exaggeration.
Users should know that 2FA isn’t entirely secure.
If an unauthorised party chooses to deploy other methods such as phishing attacks, account recovery procedures, and malware, 2FA cannot be a full-proof security system.
Nonetheless, it’s an advanced security system that is much better than barely a password.
Users don’t realise that their passwords can be easily compromised, especially if they have the same password for more than one website.
Clicking on links sent via unreliable sources via emails can also lead to password theft.
In such instances, 2FA is very helpful as it doesn’t let an unauthorised user to access an account with the stolen password.
The other party can have your password.
But they can’t have your device (smartphone where OTP is received) or they can’t impersonate you (biometrics).
Therefore, most credible bodies recommend users to implement 2FA on their accounts for maximum security.
BitDelta has built a full-proof security infrastructure so that the funds and other crucial details of the users are kept in a completely safe and secure manner.
It is therefore recommended for BitDelta traders to implement the 2FA security feature to keep their accounts secure.
Trade with the knowledge that no Pirate from the Hackibbean 🏴☠️ can exploit your funds stored securely on the BitDelta app.
This article is for informational purposes only and not intended as investment or financial advice. It contains opinions and speculations that are subject to change without notice.
The author and publisher disclaim any liability for decisions made based on the content of this article. Readers are advised to conduct their own research and consult a financial advisor before making investment decisions.