Digital wallets, similar to conventional financial software, face ever-changing security risks as hacking techniques continue to become more sophisticated. According to web security firm High-Tech Bridge, about 93% of digital wallet apps contain at least three medium risk vulnerabilities while 90% hold at least two high-risk issues. This has made security in the industry a complex and dynamic challenge for wallet platform companies seeking to dominate the market. While blockchain itself has proven to be largely secure, it doesn’t produce a fully secure system for the digital wallet user. There are several security risks associated with digital wallets, and most users are unaware of them. On top of that, cryptocurrency exchanges rely on digital wallets to hold their customers’ funds, worth millions – which as you may have noticed from the headlines, have been big targets for hackers.

Some of the most common digital wallet vulnerabilities include:

  • A weak user identity verification process.
  • Poor wallet app that hackers can reverse engineer and steal encryption keys.
  • Weaknesses in the registration process where hackers can obtain a user’s personal information.
  • Limitations in the design of a digital wallet that creates loopholes for hackers to exploit.
  • A dishonest user registering a digital wallet under a victim’s mobile phone number.
  • Most digital wallets lack a fraud verification system during registration to verify a user’s card information.
  • Most digital wallets have little to no protection against MitM attacks like SSL Strip.
  • Some digital wallets save sensitive data such as personal ID and card information in a plain text manner.
  • The registration process can be overwhelmed due to the registration of a large number of users using automated bots.
  • Loopholes in the digital wallet can lead to taking over another user’s identity by re-registering as that user.

Considering some of these vulnerabilities and more, it’s clear that digital wallets are in need of superior security features. It’s precisely for this reason that the BCMY (Blockchains.my) digital wallet app is taking consumer’s security concerns into account.

BCMY Digital Wallet Security Features

BCMY is a decentralized digital mobile wallet app that simplifies the process of making payments, trading, and exchanging digital assets and gold among users. For these reasons, the BCMY digital wallet comes packaged with several security features to guarantee the safety of users’ personal information and digital assets. Some of the wallet’s unique security features include:

  • Facial Verification

The BCMY digital wallet verifies user’s faces before it allows them to log into the system. It does so through the use of the Microsoft Azure API, a cloud-based service that provides advanced face algorithms for facial recognition and verification. The Microsoft Azure API conducts authentication of the user’s real-time face photo at login against the user’s face photo provided during the registration process. The app works well for frontal and near-frontal faces.  

Facial recognition makes it extremely hard for hackers to access your digital assets. Unless hackers can replicate your face, it’s tough for anyone else to access the contents of your digital wallet. Only you retain access to your wallet unless you’re forced to open your digital wallet at gunpoint, which is most likely (and hopefully) a more-than-infrequent occurrence. Of course, there’s also the possibility of a Mission Impossible-like mask being made of your face, but again, not likely. There may be a way around this security feature, but for now it’s  top-of-the-line, and doing so would be extremely difficult and inconvenient.  

  • Data Encryption

Most people have a fear of losing their data over the network. The BCMY digital wallet uses one of the most popular and effective data security methods known as data encryption to guarantee data security for users. Data encryption converts data or plaintext into codes known as ciphertext through unique encryption algorithms. Through data encryption, any BCMY wallet user’s data remains confidentially stored and protected.

This feature comes in handy with private keys. The wallet encrypts even your private key, thereby making it difficult for any security breach to occur. Any hacker that needs to access your account using your private key would first have to decrypt the private key (if they can) before gaining access.    

  • Login Security Measures

There are two primary options for logging into the BCMY digital wallet app: by using a registered email and password or by using a purchased NFC card. During registration, users are required to provide their real-time face photo to facilitate second layer verification. Once verified, users will then get a One-Time Password (OTP) that will be sent to the users’ phone number via SMS. Once the OTP is successfully entered into the app, the user can finally login.

The OTP adds an extra layer of security as only the valid owner of the registered phone number, or email address should be able to access the OTP. It’s beneficial in situations where a hacker may have acquired a user’s login details.  

  • Auto Lock

The BCMY digital wallet comes with an auto-lock feature that kicks in once the wallet app remains inactive for a while. Apart from adding an extra layer of security for your digital assets, it provides the user with peace of mind knowing that no unauthorized person has access to the digital wallet if their phone gets lost or stolen.

  • Session Restriction

Session restriction restricts the number of individuals that can actively login and use the BCMY digital wallet app. Only one user can access the wallet app at a time. The wallet will notify you in case anyone else tries to access it. Session restriction is also integrated with the OTP functionality of the app that keeps out unauthorized personnel from accessing the wallet.

  • BitGo Security

The BCMY digital wallet also leverages BitGo security services. BitGo is a trusted global provider of security and custody services that solves a multitude of complex business challenges in the cryptocurrency industry. It provides the BCMY digital wallet with cold storage technology features that ensures clients’ digital assets remain secure as they transact. Moreover, their advanced security features and multi-signature process eradicates failure points, ensuring that all assets remain safe and secure away from cyber criminals.

Conclusion

Nearly every single day there are reports of significant cryptocurrency hacks or ransomware violations. But as cybercrime continues to develop, so will security countermeasures. We’re aware of the various vulnerabilities that plague other digital wallet systems. To protect our users and foster confidence in using our wallet, we have invested heavily in the above security measures to minimize security breaches. We’re hopeful in the future of our BCMY (Blockchains.my) digital wallet app to continue offering services for digital asset owners and business entities. Moreover, we’re happy to let you know that we’re KYC-compliant. Visit our main website to check out our advanced and secure, multi-asset blockchain-based digital wallet.