The privacy of financial data has been under increasing attack lately.
This was said by Lumi Wallet CEO Diana Furman during a live YouTube chat with CoinDesk reporter Brady Dale and data protection and privacy expert Debbie Reynolds.
The broadcast was dedicated in particular to the analysis of recent scandals related to the collection of information by Tik-Tok, and the Twitter hack.
In the first case it was not a hacking, or a hostile violation, but a deliberate choice of the company that owns the App, which decided to snoop through its users’ data by storing the data copied from their clipboards of their devices. It is clear that this is a huge security problem, and it is more than a simple violation of the privacy of one’s own data, especially with regard to the potential risk for the security of users’ financial data.
In this regard, Diana Furman stressed the importance of the security of data stored in the clipboard of users’ devices, particularly for those working with cryptocurrency. She said that there is a big problem for newcomers to this market because they often do not know how important it is not to share any data in any way that would allow others to access their funds.
For example, users often use the copy/paste function to store the seed or to copy a private key between different applications, and initiatives like TikTok can seriously jeopardize the privacy of this important financial data.
In the case of Twitter, however, it was a classic hack, a violation of their data storage center. The seriousness of the fact is evident, because in case it happened for example to a custodian platform, it could allow hackers to steal users’ funds.
Debbie Reynolds has proposed as a solution the separate storage of personal and financial data, so that a possible violation of the former does not necessarily involve a violation of the latter.
However, it is clear that, on the one hand, there is still a lot of work to be done to completely secure important user data such as financial data, and on the other hand, their privacy is under attack. Also because financial data is tempting to many criminals and fraudsters, making them increasingly cunning and difficult to stop.
All this seems to be increasing every day more and more the risks that cryptocurrency holders run, especially novices who are still unfamiliar with the security practices necessary to make it safe to use.