Not all cryptocurrencies are useful. How they are used, hacked, and criticized.

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How relevant are virtual safes for protecting confidential data? Do they guarantee 100% security? And what hacking methods are used by intruders to get inside the cryptographic container? Answers and details can be found in this article.

What is a cryptographic container?​

On the user side, a cryptographic container is an encrypted file with confidential information. Although the technology is actually an encrypted folder with a password.

In fact, a cryptographic container is a safe for particularly important data that is placed on the user's computer. If it is "open", then you can put any files in it. To hide them, the user "closes" the cryptographic container. If you need to see the content, enter the key or password.

The cryptographic container is considered to have a high degree of data protection. The main argument is modern encryption algorithms.

Why do I need a cryptographic container?​

Usually, the technology is used to protect confidential information from unauthorized access. This can include both personal data and business-critical information.

Alexander Zubrikov
General Director ITGLOBAL.COM Security

Another case is data loss protection. Cryptographic containers can be used to create "virtual safes" in which data is protected from accidental loss or damage. In this way, they can serve as a backup tool for important files and documents.

Usually, cryptographic containers are created on laptops and alienated storage media. But sometimes they are used to protect data on servers. For example, this happens if an attacker can gain physical access to them.

What should I choose: TrueCrypt or VeraCrypt?​

Encryption in cryptographic containers is performed on the fly. This means that data is automatically encrypted before being written to disk and decrypted immediately after it is read. All processes take place without the user's participation.

For encryption in cryptographic containers, two products are more often used – TrueCrypt and VeraCrypt. The first one was in demand for many years. But in 2014, the developers stopped supporting the project and recommended that users switch to other encryption tools. Including the product that is based on the old one-VeraCrypt.

Sergey Belov
Head of the Banking Systems Security Research Group, Positive Technologies

Then, several non-critical vulnerabilities were found in the TrueCrypt code. Since the product is no longer supported, they will not be fixed.

In turn, VeraCrypt is a fork of TrueCrypt and is actively developing. The developers fixed some of the vulnerabilities that they found in the previous product, as well as improved encryption algorithms. At the same time, the new fork supports up-to-date versions of operating systems and file systems. All this makes VeraCrypt a more convenient and secure option compared to TrueCrypt.

However, experts remind you that VeraCrypt also has disadvantages. In particular, the solution is much slower than its predecessor. Although often users on modern computers do not notice this difference.

When is it better not to use it​

However, for many users, cryptographic containers are far from the most convenient information security technology. If the key or password from the cryptographic container is lost, it is almost impossible to recover the data. And the speed of writing files to such a safe is much lower than to a regular hard disk.

In general, experts recommend using cryptocurrencies only when there are enough of them. In more complex situations, it is better to consider other methods of protection – they note.

Sergey Belov
Head of the Banking Systems Security Research Group, Positive Technologies

Sometimes it is more appropriate to use other security technologies. For example, when it is necessary to ensure real-time data protection when exchanging confidential information over the network. In such cases, you can use technologies such as GnuPG or OTR (Off-the-Record).

Also, cryptographic containers will not help if you need to protect the entire device, including the operating system and all files. The best solution here is disk encryption. You can use it to hide all information on your device, including system files. And if the device falls into the hands of an attacker, the data will remain protected.

Hacking methods and three tricks​

A high degree of data protection is one of the advantages of cryptographic containers as an information security technology. However, they are not 100% reliable and can be hacked.

As a rule, attackers use password selection. So far, this is the most common way to hack cryptocurrencies. A cybercriminal can use powerful computers and password dictionaries to select a combination of characters for access.

Alexander Zubrikov
General Director ITGLOBAL.COM Security

The second method is attacks on the weak link. If the weak link in the system is the computer on which the cryptographic container is opened, attackers can use malicious software. It can intercept the password or data before it is encrypted. Or they can do it after the data is decrypted.

Sometimes social engineering helps detractors. To get a password or key, criminals can pretend to be a technical support representative.

Sergey Belov
Head of the Banking Systems Security Research Group, Positive Technologies

Attacks via third — party channels are also possible- the attacker uses information about physical processes, such as energy consumption or operation execution time. This information can help you extract data that is needed to decrypt the cryptographic container.

In addition, attackers can exploit vulnerabilities in the software. The more products are used and the less frequently they are updated, the higher the probability of successful hacking of the cryptographic container.

Protecting virtual safes​

There are many ways to protect data that is located inside the cryptographic container from detractors. But experts recommend paying more attention to passwords.

Dmitry Ovchinnikov
Chief Specialist of the Integrated Information Security Systems Department of Gazinformservis

The key is the password. Accordingly, to reliably protect your data, it is enough to come up with a complex and long combination.

Of course, the password is stored in the computer's memory. Attackers can read it from there, but most likely they will attach a keylogger to you and steal data by entering information from the keyboard. Problems can also be caused by losing the password from the housekeeper, writing it on a piece of paper or as a file on the desktop. Therefore, for reliable data protection, all you need to do is treat your password data carefully and carefully.

Experts also recommend updating the software, including the cryptographic containers themselves and the operating system, using antivirus programs and firewalls, and enabling two-factor authentication, if possible.

In addition, to protect the cryptographic container, you can disguise it as a regular file, hide it in one or more files. There is also an option with bait. To mislead an attacker, you need to create a cryptographic container with insignificant information inside and place it in a prominent place.

Experts also recommend creating a double-bottom cryptographic container. The first key to it may fall into the hands of intruders. They will enter the cryptographic container, find nothing interesting inside, and most likely leave it alone. Although really important data will remain hidden until the second password is entered.

A more radical method to protect data from ill – wishers is hardware solutions that can destroy the hard disk with an electromagnetic pulse. Cleaning is fast – 100 GB of hard disk space is destroyed in seconds. Such solutions can be triggered by unauthorized access to the cryptographic container. However, in practice, they are used infrequently – experts note.

Conclusions​

Cryptocurrencies are an up-to-date technology that is still widely used in information security. On the other hand, it does not guarantee absolute protection of confidential data and often requires additional security measures.

At the same time, the effectiveness of cryptocurrencies, like many other information security tools, largely depends on the person. Still, installing a safe for valuables is a good idea, but leaving it open or keeping your keys on a shelf nearby is not.
 
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