What are Digital Assets?
Digital assets refer to any type of asset that exists in the digital world, such as cryptocurrencies, digital art, e-books, music, and video. Some examples of digital assets include:
- Cryptocurrencies: This refers to decentralized digital currencies, such as Bitcoin and Ethereum, that are secured using encryption techniques.
- Digital art: This includes digital paintings, illustrations, and photographs that can be sold and traded like traditional art.
- E-books: This refers to digital versions of books that can be downloaded and read on electronic devices.
- Music: This includes digital music files that can be streamed or downloaded for personal use.
- Video: This includes digital video files that can be streamed or downloaded for personal use.
Digital assets are unique from traditional physical assets in that they can be easily transferred and stored in the digital world, making them accessible to people all over the world. Additionally, digital assets are often stored on blockchain technology, which provides a secure, decentralized, and transparent way to store and transfer assets.
Cyber security threats to digital assets
However, digital assets are not completely immune to cybersecurity threats. With the increasing popularity and value of digital assets, cybercriminals are finding new ways to steal or compromise them. Some of the most common digital asset cyber security threats include:
- Phishing attacks: This is when a cyber criminal sends an email or a message that appears to come from a legitimate source, such as an exchange or wallet provider, to trick the recipient into revealing their private information, such as passwords or seed phrases.
- Malware attacks: Malware malicious attacks are a type of software that is designed to damage or disrupt computer systems to gain unauthorized access. Cybercriminals can use malware to steal digital assets by infecting a user’s device with malicious software and accessing their digital wallets. Ransomware attacks, for example, are malware that is used to gain access to systems in order to lock and hold the data for ransom
- Exchange hacks: Digital asset exchanges are prime targets for malicious actors because they hold large amounts of digital assets in one place. If an exchange is hacked, cybercriminals can steal the digital assets that are stored on the exchange.
Cyber security and digital asset management
To protect digital assets from these and other cyber security threats, it is important to follow best practices in cyber security such as using strong passwords and two-factor authentication, avoiding public Wi-Fi when accessing digital wallets, and keeping the software and anti-virus software up-to-date.
Additionally, it is important to be vigilant and aware of cyber threat like potential phishing scams and other forms of social engineering that can be used to steal login credentials or trick users into installing malware to steal sensitive data or hold it for ransom. Regularly monitoring digital assets and being aware of any suspicious activity can also help to prevent cyber security breaches.
Another important aspect of digital asset management is proper storage and backup. Digital assets should be stored in secure, offline wallets or storage devices, and regular backups should be made to ensure that assets are not lost in the event of a security breach or hardware failure.
Protection through cyber security insurance
Another important step in protecting digital assets from cyber threats is to get cyber security insurance also called cyber liability insurance. Cyber insurance provides coverage for financial losses, legal expenses, and other damages that may result from a cyber attack. This type of insurance can be especially important for businesses and individuals who own large amounts of digital assets and need to protect them from cyber threats.
At Vanasek Insurance is a trusted provider of cyber liability insurance. We offer customized coverage options that are tailored to meet the specific needs of businesses and individuals who hold digital assets. Our policies can provide protection against a wide range of cyber security threats, including data breaches, cyber extortion with malicious software, and network outages.
By working with the cyber security professionals at Vanasek Insurance, businesses, and individuals can take the necessary steps to protect their digital assets from cyber threats and minimize the risks associated with owning digital assets.
With comprehensive cyber attack coverage and dedicated support, Vanasek Insurance is the right choice for anyone who wants to keep their digital assets safe and secure.