Encrypted Wallets at Risk

02/24/2023 12:32 • Daily Digest • 110 views

It is reported that Dfns, a startup of encrypted wallets, said that there are serious vulnerabilities in the passwordless login method Magic Links used by more and more encrypted wallets and network applications. Dfns said in a statement that the vulnerability could “pose a considerable risk to a large part of the global economy. The affected services said that they had hardly received any notice before Dfns published a blog article detailing the so-called zero-day vulnerability.

Encryption wallet company Dfns: “Magic Links” has a serious vulnerability

Interpretation of the news:

The message highlights the significant danger currently facing encrypted wallets, which are considered the safest means for securing digital assets. Dfns, a start-up that specializes in encrypted wallets, has raised concerns about the Magic Links’ passwordless login method used by several network applications, including encrypted wallets. According to Dfns, serious vulnerabilities in Magic Links could put a significant portion of the global economy at risk.

Passwords are regularly used in securing digital assets, which can be compromised through hacking, phishing, and other forms of cyberattacks. To address this risk, several network applications and encrypted wallets have adopted Magic Links, a passwordless system that allows a user to log in to their account by confirming a link sent to their email or phone. However, Dfns has identified a considerable risk associated with this authentication method.

Dfns believes Magic Links is vulnerable to zero-day attacks, where an attacker discovers a software vulnerability before it is discovered by the product’s vendor or developers. The company’s statement implies that Magic Links’ security flaws could have a severe impact on the global economy if malicious actors compromise the system.

The affected network applications and encrypted wallets have raised concerns about inadequate communication from Dfns before publishing their findings. Dfns’s blog highlights this passwordless vulnerability, which could inspire bad actors worldwide to launch attacks as developers rush to patch the flaws.

In conclusion, digital asset holders should remain vigilant and continuously assess their investments’ security features. It is essential to check for regular software updates, two-factor authentication, and non-password authentication options to secure digital assets further. While magic links’ passwordless authentication has been lauded for its convenience, it is equally important to weigh security measures against the convenience of the authentication method adopted.

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Encrypted Wallets at Risk

Encryption wallet company Dfns: “Magic Links” has a serious vulnerability

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