Say Hello To The World's First Insurance Against Cyber Threats For Cryptocurrency Exchanges
Group-IB in conjunction with Swiss insurance broker ASPIS claims to have developed the world’s first platform that can assess the potential of a cryptocurrency exchanges’ overall security protocols (thereby allowing clients to insure their assets in a hassle free manner). In regards to the matter, we can see that by 2023, the ‘crypto asset insurance market’ is all set to scale up to a whopping $7 Billion.
#GroupIB a Swiss insurance broker ASPIS SA that owns CryptoIns project, have developed the world’s first scoring model for assessing crypto exchanges cybersecurity, allowing the exchanges’ clients to insure their assets#crypto #blockchain More details: https://t.co/n0kco4ktnf pic.twitter.com/2a9Vjt9Aj5
— Group-IB (@GroupIB_GIB) November 6, 2018
More About The Program
In their quest to develop the aforementioned insurance program, Group IB and ASPS assessed more than 20 crypto exchanges and crypto wallets providers using open-source information as well as other analytical data present on Group-IB’s Threat Intelligence (TI) system.
To further elaborate on the matter, we can see that the above TI module is designed to correlate information associated with a host of different fields such as cyber threats, internet fraud, data leaks etc. Based on the risk score, CryptoIns then provides a specific insurance rate for cryptocurrency exchange users who can then “insure their accounts against cyber threats”.
What Is the Point of All This?
As per research data released this year, targeted attacks by hackers and miscreants have caused investors and alt-coin holders to lose over USD $877 Million just in 2018 alone. Out of this figure, at least five of these attacks have been found to have originated from North Korea.
In relation to the matter, Andrey Busargin, a Director at Group IB, was noted as saying:
“The crypto industry does not have sufficient means of securing customers’ funds against attacks by scammers and hackers ;Under the current circumstances, insurance of cryptocurrency assets on crypto exchanges is a good way to shield yourself from the risks most users are usually unaware of. Without a doubt, in order to create an insurance product it is important to involve independent experts specialized in countering cyber threats, who have access to unique data sources for crypto exchanges’ security assessment. Cryptocurrency exchanges collaborating with Group-IB help us create a more detailed cybersecurity profile, which at the end of the day improves their security and attracts new customers.”
Group IB has time and again assessed the security levels of crypto exchanges using a host of technical criterion (such as reliability of storage of keys, passwords, and personal data of customers). If that wasn't enough, the firms latest offering will also consider the quality of the risk management systems, the availability of KYC/AML guidelines and independent ratings of the exchanges when assessing a platform’s insurance score.
Based on the above classification, the folks over at CryptoIns are then able to determine the insurance rates for different exchanges depending on their niche’ risk groups (with the most common rate being 1.9%)