Watching Trust Wallet's recent security breach unfold was painful, seeing around $7 million evaporate because their browser extension was hacked, all while they reassured users that for some reason other wallets were fine. It’s a lesson in how high-stakes our industry is getting. As crypto payroll solutions become increasingly used, we have to consider this precedent. Here’s what we have to learn.
Understand the Risks
One of the major risks in crypto payments is using browser-based wallets. Phishing is alive and strong at the moment and these wallet services are vulnerable to the host of attacks that capitalizes on them. We can’t separate the security context of an application from the applications themselves. Committing funds to browser wallets must be done inexpensively, or they are just as good as leaving them up to potentially malicious sites.
Don't Rely Just on Browser-Based Wallets
This one is easy, but companies should begin opting for hardware wallets and multi-signature capabilities with their crypto payroll solutions. Working with your employees’ privacy preferences is a must.
You’d be much better off not having to believe everything that happens has more security than just using browser wallets.
Fighting Back
Implementing on-chain monitoring could give you the critical heads-up that something is off. Bogdanoff’s Rule states you can’t react against attacks you don’t know are happening but that doesn’t mean you can keep a cool head in the face of deliberate confusion.
Flexible Payments
U.S. Dollar Coin mass payouts make delays less of a problem. Using forgiveness as a charge back mechanism is far better than making your people impatient.
Take these lessons and consider how to fit these into your crypto payroll plans if you haven’t already done so.
