The journalist of BBC has lost £25,000 in Ethereum because of technical illiteracy
Business reporter of British media company “BBC” has told how he lost cryptocurrency savings because of the typical rookie mistake.
The editorial staff of “BBC” Monty Manford published a report about how he lost 25,000 pounds ($30,000) in Ethereum due to lack of technical literacy. Manford first acquired the cryptocurrency at the end of 2017 at the peak of the bitcoin price.
“I heard about bitcoin, but it was one of those technologies where I nodded my head wisely when I was in the same room with those who talked about it… But when the price of bitcoins reached its peak — about $ 20,000 (16,500 pounds) at the end of 2017 — an increase of more than 100,000% in seven years — my curiosity overcame me.”
His choice fells on Ethereum. According to the journalist, he was making long-term investments that he thought could help him when he retired. Manford hoped that Ethereum would follow the growing bitcoin and also demonstrate a sharp rise.
Manford described his experience with cryptocurrencies as “absolutely terrifying.” Storage he chose the wallet MyEtherWallet, not a crypto currency exchange for fear of break-ins and security breaches. Manford had both a public and a private key, and he knew that the private key had to be kept securely, otherwise he would risk losing access to his wallet. But then Manford came up with a less “brilliant” idea: “I was printed it out, but also made the fateful decision to keep it in Gmail drafts so I could copy and paste it when I needed to make a transaction, and not print it every time.”
Saving a private cryptographic key on Google mail servers or in any third-party free mail services is similar to the situation when you leave the key in the car with the engine turned on and think that no one will steal the car, writes the Bitcoinist edition.
Manford realized that he had made a mistake only when he saw that his wallet was empty. He traced the path of the stolen tokens to the wallets belonging to the Binance crypto-exchange. But exchange did not respond quickly to the letters of Manford with the requirement to freeze the accounts of the alleged criminals. Binance requested official confirmation of the crime. Then the journalist turned to the American company CipherBlade, which cooperates with the FBI to track down the scammers. Cybersecurity experts have found that social engineering or phishing techniques were most likely used to access a journalist’s Gmail account, as well as predatory programs that intercepted information when pressing copy/paste. Manfred also filed a statement with the cybercrime Department of the Sussex police, which contacted Binance and was able to obtain information from the crypto-exchange about the IP addresses from which deposits with the stolen cryptocurrency were made. They are in the Netherlands, but it has not been possible to identify the criminals.
Manford highlights the main problems associated with investing in cryptocurrencies:
● Consumer protection does not apply to Bitcoin or Ethereum investors.
● Ethereum and other cryptocurrencies can be stolen in seconds.
● The problem with passwords — or private keys — they can be stolen.
According to Manfred, consumers are not protected when it comes to keeping a secret key. “Writing down a secret key on paper can also be dangerous. A fire in the house, a flood, a hungry pet — just a bad memory — could mean that a huge amount of cryptocurrency is lost forever.”
The journalist concludes his story with the words that he feels as if he was “in a wild Bazaar, where criminals can easily clean his pockets and they will do nothing for it.”