Joseph C. Guagliardo, a partner with Pepper Hamilton, a co-leader of the firm's Technology Group and chair of the Blockchain Practice, was quoted in the May 7, 2018 Law360 article, "New 'Cryptojacking' Threat Exposes Old Flaws in Security."
Cryptojacking is cheaper than buying currencies like bitcoin, the price of which has skyrocketed in recent months, and if hackers can operate undetected on a business' servers — the United Kingdom's United Crime Agency and National Cyber Security Center warn that half of all businesses worldwide were either attacked or forced to mine cryptocurrency for hackers in December 2017 — it's not a stretch to imagine them also snagging highly sensitive corporate information, consumers' personal data or employee details, says Pepper Hamilton LLP partner Joseph C. Guagliardo.
"There are a lot of institutions that are either not involved in blockchain because the technology doesn't provide a solution for their business problems or for policy reasons, as a lot of companies have come out and said they think it’s a bubble," Guagliardo said. "But I think regardless of your position, you have to understand it, and at an executive level, senior level, you have to understand that regardless of whether blockchain and cryptocurrency is important to you, it’s happening."
Walls are only as good as those defending them, so employees need the same education and training from the CEO to the human resources personnel on down, Guagliardo said. "At some point, if you’re not doing this, when does it become negligent?"
"There’s a traditional way of thinking about data breaches — protecting personal information, and protecting servers from data theft," Guagliardo added. "Very few companies are actually thinking that people may not be interested in data, just the power of your servers for illicit purposes."