The Main Security Challenges Standing in the Way of Crypto Payment Gateways

The Main Security Challenges Standing in the Way of Crypto Payment Gateways

As more and more companies, from small online stores to the world's largest service providers, accept cryptocurrency as a payment instrument, the issue of the security of crypto payments becomes more acute. Processing services that provide such transactions face a huge layer of problems related to the security of crypto payments. Some of these problems are common to fintech services, but several issues are unique, as they relate to the architecture of decentralized currencies and the payment infrastructure serving them. 

We talked to the developers of ALFAcoins, one of the most popular crypto processing services working with thousands of merchants around the world and helping to integrate payments into Bitcoin, Litecoin, Ethereum, Bitcoin Cash, Dash and XRP. They told us what risks crypto-processing services face and how to make crypto payments safe and reliable. 

- Vulnerable software. The basis of a cryptoprocessing service is its software. The processing service serves as an interface between the seller's website and the buyer's crypto wallet, which allows transactions to be processed in various coins. Even the slightest flaw can lead to a vulnerability that cybercriminals won’t fail to take advantage of. Therefore, when choosing a cryptoprocessing service, merchants need to make sure that the installed software has passed an independent audit from a third-party cybersecurity company. 

- Phishing attacks. The most common and successful type of attack on users exploits the vulnerability not of software, but of a person – indeed, his credulity. Cybercriminals have long chosen cryptocurrencies, which, due to their decentralized architecture, allow them to avoid blocking and returning funds to the rightful owner. It’s not the first year that crypto users have become victims of malware that simply replaces the recipient's address with the hackers' wallet address. After the transaction is confirmed, the coins are sent not to the addressee, but to the hacker. In most cases, the user has to put up with the loss, because he himself made the transfer without making sure in advance that the recipient's address was not changed. Vigilance helps to resist phishing attacks; the user shouldn’t click on unfamiliar links and install software originating from non-official app stores. 

- A crack in the merchant's account. An attacker can contact a merchant connected to a processing service and impersonate customer support. As noted by the crypto processing service ALFAcoins, sometimes scammers specifically distribute a fake phone number for technical support to social networks and forums, posing as an employee of this company. Overly trusting users call the specified phone number and are persuaded to hand over access to their account. Two-factor authentication will help protect the merchant's account from theft, even if the login and password are compromised. 

- Introduction of malware into the processing solution’s software. Indeed, there have already been such cases; in 2018, the Copay crypto wallet, developed by the BitPay processing service, was compromised by a hacker who uploaded a malicious script to steal users' private keys and place them in a third-party JavaScript library used by the application. Protection against this type of fraud should be handled by the companies themselves, by the developers of processing solutions, because their reputation and customer trust are at stake. 

- Toxic bitcoins. The fight against money laundering through cryptocurrencies has become a new trend in the crypto world in 2022. Coins that pass through wallets associated with criminal activities and terrorist organizations can become a headache for the merchant who accepted them into his wallet as payment for his goods or services. Moreover, it spells trouble for the processing service that helped to carry out this transaction, even if their actions were not related to illegal activities. This is a unique problem, characteristic of cryptocurrencies, because you may track the movement of a coin across the blockchain from its mint to the last owner. Crypto processors have to implement tools that allow one to analyze the ‘purity’ of coins. Without these tools, they risk being involved in lengthy court proceedings and investigations, which will negatively affect their reputation.

- Fake websites. This is a simple, cheap, but still very effective way to steal coins from users. If you type the name of a popular crypto service into any search engine, you may be surprised to find that the first advertising lines of the search results are occupied not by official websites at all, but by copycat sites. Outwardly, they completely repeat the design of official websites, with the goal of deceiving the user and forcing him to enter his username and password or download an application that already has a script intent on stealing coins. The developers of ALFAcoins emphasize “the more popular the service, the more fraudulent copycat sites it has”. Sometimes, companies themselves have to track the appearance of such sites, which seek to protect their users from scammers. 

- Storing received coins on a hot wallet. No matter how reliable the wallet of the processing service is, merchants need to make it a rule not to store large amounts of coins on it. Once a week or once a month, you should withdraw coins to a third-party cold wallet. This will help to avoid large losses even in the case of a successful hacking, no matter whose fault it is. 

ALFAcoins is a modern, secure, and multifunctional payment system for cryptocurrencies. Available since 2013, now it’s launching a new version with an upgraded payment system and a personal wallet. Through its use, merchants worldwide can accept and send cryptocurrency payments in an easier, faster, and cheaper way.

The advantages of accepting cryptocurrency payments are obvious. Everyone can exchange them in no time from one point on the planet to another. Forget about high fees, technical issues and fiat restrictions in most of the world. Additionally, over 100 million crypto-users are looking for places where they can spend their coins.

With the new ALFAcoins, issues like volatility, security, and difficulty disappear from this process, leaving behind just the benefits. The platform calculates convenient and real-time rates for all the involved parties and offers useful statistics for merchants. It also provides different ways for payment integration on websites and the best security with cold storage and 2FA.

Key Features:

  • Increase your amount of customers and sales — accept Bitcoin, Litecoin, Ethereum, Bitcoin Cash, Dash, and XRP;
  • Simple integration via API, a payment button and a shopping cart plugin; 
  • A very low fee (0.99%);
  • No volatility risks (the exchange rate is fixed for 15 minutes after the invoice has been generated);
  • Automatically pay your clients or employees (e.g., salaries, bonuses) in cryptocurrency;
  • Automatically make transfers to your own wallet without additional fees;
  • Access enhanced statistics with income, revenue, sales dynamics, and payments lists.

ALFAcoins provides a complete service for merchants who wish to accept cryptocurrency payments. Now, it offers a highly secure personal wallet. This way, it’s helping to include everyone in the new era of cryptocurrency payments.

Disclaimer: This is a sponsored press release, and is for informational purposes only. It does not reflect the views of Crypto Daily, nor is it intended to be used as legal, tax, investment, or financial advice

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