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.
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.
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