Browse Definitions :
Definition

digital wallet security

Digital wallet security is the area of concern surrounding the special considerations of software that stores digital currencies.

Digital wallets are used for transactions involving both conventional and digital currencies, but because the latter work differently, they require different safeguards – or at least variations on traditional security measures.

Cryptocurrencies such as Bitcoin use encryption to secure unit generation and transactions. However, there are a number of risks involved with storing cryptocurrencies in digital wallets.  Bitcoin exchanges have been attacked and had funds stolen. Furthermore, as the prevalence and value of the cryptocurrency have risen, so have the malware programs designed to attack digital wallets.

In some ways, a digital wallet is similar to a physical one with cash in it – if it’s lost or illegally accessed, the money is most likely gone. One user literally threw away the equivalent of $4.6 million when he disposed of a computer, forgetting that it had 7,500 Bitcoins stored on it. The best practice is to maintain one digital wallet for everyday use and keep only a limited amount of funds in it at any given time. Another digital wallet with the majority of your currency should be kept offline and stored in a secure location.

This was last updated in December 2015

Continue Reading About digital wallet security

SearchCompliance
  • ISO 31000 Risk Management

    The ISO 31000 Risk Management framework is an international standard that provides businesses with guidelines and principles for ...

  • pure risk

    Pure risk refers to risks that are beyond human control and result in a loss or no loss with no possibility of financial gain.

  • risk reporting

    Risk reporting is a method of identifying risks tied to or potentially impacting an organization's business processes.

SearchSecurity
  • Pretty Good Privacy (PGP)

    Pretty Good Privacy or PGP was a popular program used to encrypt and decrypt email over the internet, as well as authenticate ...

  • email security

    Email security is the process of ensuring the availability, integrity and authenticity of email communications by protecting ...

  • Blowfish

    Blowfish is a variable-length, symmetric, 64-bit block cipher.

SearchHealthIT
SearchDisasterRecovery
  • What is risk mitigation?

    Risk mitigation is a strategy to prepare for and lessen the effects of threats faced by a business.

  • fault-tolerant

    Fault-tolerant technology is a capability of a computer system, electronic system or network to deliver uninterrupted service, ...

  • synchronous replication

    Synchronous replication is the process of copying data over a storage area network, local area network or wide area network so ...

SearchStorage
Close