See More

ASIC Chair Sounds Alarm About Escalating Hacking Crisis

2 mins
Updated by Kyle Baird
Join our Trading Community on Telegram

In Brief

  • ASIC Chair Joe Longo warns of the urgent need for cyber security and resilience among company boards.
  • Recent ASIC survey reveals nearly half of Australian businesses fail to adequately manage third-party cyber risks.
  • Amid increasing cyber attacks, the crypto industry reported over 48 major hacks in July, resulting in $165m losses.
  • promo

Amid the ongoing surge of hacks in the crypto industry, Joe Longo, Chair of the Australian Securities and Exchange Commission (ASIC), issued a cyber security warning. Longo stressed the importance of ongoing security vigilance for all firms.

“Organizations must take an active approach to evaluating and managing third-party cyber risk,” Longo stated.

ASIC Alerts To Cyber Security Risks From Complacent Firms

In a recent statement, ASIC chair Joe Longo warned about the growing trend of businesses relying on third parties for cyber security and critical data protection.

He considers this approach, without ongoing review, “a serious weakness.”

Longo cited recent ASIC survey results indicating that almost half of businesses in Australia are at risk. He explains that these firms do not conduct adequate due diligence when dealing with third parties for cyber security risks.

“Nearly one in two (44%) of respondents indicated that they did not manage third-party or supply chain risk, and more than half have limited or no capability to protect confidential information adequately.”

Longo identifies three principles for firms to safeguard themselves against vulnerabilities.

He suggests that firms remember to “never set and forget and plan for and test for attacks.” Longo further warns that firms “can’t protect what you aren’t aware of.”

Longo emphasizes the importance of companies avoiding complacency, even when they believe they have implemented some protection against cyberattacks.

“This is the belief that you’ve done everything you need to do, and you don’t need to worry anymore.”

Crypto Industry Faces Surging Hacks

Recently, the crypto industry has witnessed a significant number of hacks, leading to substantial financial losses.

On August 1, BeInCrypto reported there were more than 48 major crypto hacks in July. This led to approximately $165 million in losses.

Crypto Hacks and Web3 Security Report July. Source: PeckShield
Crypto Hacks and Web3 Security Report July. Source: PeckShield

PeckShield, a blockchain security firm, provided data indicating that 95% of the total stolen funds in July, amounting to $156 million, were attributed to the top five hacks.

July marked the second-highest month for crypto theft, following March, when over $200 million was illicitly acquired.

In the first quarter of 2023, Beosin, a blockchain security firm, reported 61 attacks and 41 rug pulls in the web3 space. The firm disclosed that the cumulative loss from attacks in Q1 2023 amounted to approximately $295 million.

Top crypto projects in the US | July 2024
Harambe AI Harambe AI Explore
Uphold Uphold Explore
Exodus Exodus Explore
Coinbase Coinbase Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | July 2024
Harambe AI Harambe AI Explore
Uphold Uphold Explore
Exodus Exodus Explore
Coinbase Coinbase Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | July 2024

Trusted

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

ciaran-lyons-avatar.png
Ciaran Lyons
Ciaran is a cryptocurrency journalist based in Sydney, Australia. He particularly enjoys writing about CBDC developments and the practical implementations of cryptocurrency in real-world scenarios. He has also appeared across major television networks in Australia including Channel Ten, Channel Nine and SBS TV. Prior to his foray into cryptocurrency, Ciaran worked as a presenter on national radio station Triple J.
READ FULL BIO
Sponsored
Sponsored