How to ensure ICO security from Ddos attacks
The security problem is among the top issues of the entrepreneurs which have chosen the Initial Coin Offering model to fund their project.
As for Q2 2018, the total amount of funds attracted using the ICO model stands at more than $2 Billion which indicates a steady market growth – for example; this number had risen from $26 million in 2014 to $225 million in 2016 and to $5,4 Billion in 2017. That undoubtedly high number still doesn’t include some significant future projects as Telegram’s planned $1 Billion ICO, or Overstock’s ICO and less perspective ones, so this year will definitely show new record heights.
Bold statistics show a visible increase in specific segments of business – Internet of Things and People, Financial Markets, Investments, Banking & Payments and Cryptocurrency sectors are the most popular at the current state.
In total, there are 225 crypto funds across seven strategy types (hey there Salt’s credit fund) and see assets in the space being between $3.5 billion and $5 billion.
As the number of ICO projects are rising steadily, the percentage of cybercrimes growth become disturbingly high. In 2017, for example, more than 10% of all the investments in Ethereum had been stolen by hackers and fraudsters.
This market is still a Wild West territory, specific measures are to be taken in order to protect the project before and during the ICO.
Nowadays a distributed denial of service (DDoS) attack is one of the most common, dangerous and hardest to prevent problems which gives a serious risk for any ICO. How does is basically work? During the DDoS attack, the project website is flooded with queries executed by a distributed network of malware-infected computers (botnet). Over time, eventually, the servers run out of resources and are down.
It is important to realize that the main reason behind the DDoS attacks which serves more as a smokescreen. While performing it, the hackers and internal attackers go for exploit the more serious security breaches and expose the most vital weak points. Usually, it refers to the access the control panel of the website either to mass mail spam of a link containing an attack vector to users and potential ICO token buyers.
Hackers go for complete control of the website and most likely change the purse addresses for the coin buyers. Next, fraudsters replace the content of the users’ page and use the original website address for the more effective phishing attack.
We outline the most typical and often attacks that take place:
1)Http flood attacks
These kinds of network attacks are associated with the number of queries. When the number is too high, it can saturate the bandwidth of the targeted website and drain the network capacity.
The protocol attacks aimed at direct drain actual server resources, or the resources of firewalls and load balancers.
It’s also important to consider that:
-Be aware that the search engines to track the website activity as well as DDoS robots.
-Important tip: the load from security measures should be lower compared to the case when the bot overcomes it.
Now, let’s consider the security measures that are to be taken in order to comply with the rising number of threats.
1) The main thing to do is to go for search and install the advanced anti-DDoS services. Particularly, such could be named as CloudFlare, Incapsula, Akamai, or DoS Arrest which are aimed at resolving issues with the volume-based attacks. Anyway, never forgot not to rely entirely on them as the third-party services are still may present a certain degree of danger. So, track their performance at times and look up for any unusual activity.
2) Web application firewall is a decent thing to use when it comes to security, so the impact of malicious payloads could be observed in real
time. In that case, a user should check up for any excessive rules not to be imposed.
3) Choose the reliable hosting with decent security features. Another major requirement for the hosting is the scalability options.
4) Check for any project code issues. The final quality control of the code and its scalability options is one of those things that should often be kept in mind at the last stages of development. Audits performed to double check the smart contracts and the website code would be of help as well.
5) The website. Nonetheless, it is essential to track your website always in order to notice even the slightest changes to the web pages, the size and content posted. The higher is the frequency of these check-ups from your side, the faster will the potential threat situation will be handled, and the control will be restored.
The final thing to keep in mind is your own ability to react to any rapidly emerging issues. No matter what measures are taken or implemented, that DDoS attack might still take place before or during your ICO. If a certain situation will happen despite all odds, a splash page must be used, to inform that the website is under attack, so the potential investors/visitors will be redirected to visit the social platforms and official chats to be appropriately informed.