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Crypto companies beware-the risks of human error are too great to ignore

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Source: Frontlines

If there are three things we know about the human error, it’s that it can be costly, dangerous, and ultimately inevitable.

No matter how competent or intelligent a person is, they are bound to make mistakes, and a single error can lead to substantial losses and devastating repercussions to any company that does not take proactive measures.

This is especially true when it comes to managing or accounting for crypto. Although solutions exist to automate manual tasks and streamline finance workflows, many crypto companies continue to depend on a human workforce, leaving them susceptible, because no human is infallible.

Statistics show that overdependence on human skill is a liability not only in the world of crypto but in any company across many vastly different industries.

To demonstrate the severity of the human error and how it can impact your company, let’s take a look at some of the most telling statistics:

27.5 percent of companies reported that incorrect data was manually entered into their enterprise systems.

For businesses,  incorrect or inconsistent data entry can lead to major issues when filing taxes or completing an audit. For crypto accountants, bookkeeping errors can lead to miscalculations of the business’s financial health and can result in inaccurate projections for reports, growth and total revenues.

Any professional will stress the importance of accuracy and verification for manual data entry. It’s simple, mistakes cost money, reputation and even trust from their customers.

Human error causes roughly 90 percent of cyber attacks.

Most crypto CFOs and CEOs are keenly aware of the overall need for increased cybersecurity. But they mistakenly approach the problem from the outside in, rather than the other way around. They believe the biggest threats are external and malicious, but nearly 90 percent of cyber attacks stem from human error.

This can even occur without an employee even realizing it, and many employees have exposed themselves and their companies by responding to phishing emails or using weak passwords.

The stakes are incredibly high in the world of cryptocurrency. One compromised employee account can result in potential financial losses for a company, or endanger the privacy of users or customers. It’s more critical than ever for crypto companies to mitigate risks originating from human error, and employ preventative solutions.

Instead of solely focusing on hackers [who rank fourth among all threat actors, according to Netwrix], c-suite leaders should be focused on investigating tools such as Blox.io, a crypto accounting and bookkeeping platform that provides automated and intelligent technical solutions to circumvent the issue altogether.

Between 70 and 96 percent of workplace mistakes are caused by human error.

Humans are to blame for the vast majority of workplace mistakes. Crypto leaders should absorb this point in particular because people tend to trust human intuition over computer logic. But,over-reliance on employee accuracy could lead to serious problems for any company with too much trust, and not enough checks and balances in place.

On the crypto accounting side,  employees may accidentally forget critical workflow steps, incorrectly calculate cost basis or mislabel transactions, or create organizational chaos across accounts, exchanges, and wallets. These acts aren’t intentional, but the consequences are undeniably detrimental to a company’s success, reputation, and bottom line.

22 percent of unplanned data center outages are linked to human error.

Data centers are one of the most vital components to almost every industry in existence. They host our data, private user information, websites, cloud services, and essentially everything that takes place online is flowing through data centers across the globe. To exemplify,  Facebook recently faced a social media backlash after its servers went down for hours, with many businesses suffering the loss of service and revenue.

When considering that 22 percent of unplanned data center outages are caused by human error, this should raise legitimate concerns over how data is stored and protected. Moreover, if an interruption in server uptime causes a crypto exchange to go down, the repercussions can mean a loss of millions and major backlash from users. The potential for disaster is real, and this is why businesses must be deliberate and proactive.

To conclude, humans are the driving force behind innovation, and employees are essential for critical thinking on high-level decisions and strategy. However, when introducing automation and technology, businesses can limit their exposure to the risks caused by a human error while still leveraging the experience and intuition of the human workforce.

For any company, crypto or traditional, the fear of human error is real and is unlikely to simply vanish. The only means to protect against human error is to use smarter and more innovative technology to assist and empower your human workforce. By integrating technical solutions, businesses can improve productivity, boost performance and protect against costly human mistakes.

Adam Efrima, Co-founder, Blox:

Adam is a blockchain entrepreneur and active member in the Chinese Financial and Fintech industry, living in Shanghai for over 8 years. Adam previously served in leading roles at the Chinese financial conglomerate, CITIC, and eventually founded the Shanghai office for eToro. After being deeply involved in the blockchain space for several years, Adam went on to co-found Blox.io, where he leads the Blox China headquarters, with plans to expand across APAC.



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  1. Avatar

    Michael

    March 23, 2019 at 12:57 AM

    Wow! Never realised human error could cause so much damage…

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Legislation of Casinos: Places that are taking steps towards complete Legalization of Gambling in 2019

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Legislation of Casinos: Places that are taking Steps Towards Complete Legalization of Gambling in 2019
Source: Pixabay

More and more people are seeing any form of gambling as morally acceptable. In a 2009 poll by The Gallup, only 58% of people in the US seem to accept this industry. With an update for 2018, the percentage has raised to 69%.

There could be multiple reasons why people still have different opinions about gambling, whether it’s through the form of playing a casino game online or in any establishment or betting on any sports and games. Opinions could be formed because of a person’s religion, income, and race, and educational attainment.

The legalization of gambling could also affect how people see it. With more and more places all over the world taking steps to legalize any form of gambling in their area, people are becoming more accepting of this industry. In here are some note-worthy updates about the legislation on gambling all over the world.

Regulation of Online Gambling in Ontario, Canada

Any form of gambling was made illegal in Canada half a century ago and it was in 1969 when the provincial and federal government of the country were allowed to host lotteries. Then in 1985, each province was then allowed to legalize any form of gambling that they choose.

With all of those updates on Canadian law regarding gambling, there wasn’t really anything that targets online gambling until recently, when a press release from the Canadian Gambling Association [CGA] was spread.

With this, online gambling laws in Canada seem to be taking its shaped. CGA has noticed how much Canadians, particularly in Ontario, has been wagering on online gambling websites outside the country. More than $500 million are spent by the people of Ontario in gambling each year.

Because of this, CGA and the local government see the need to have their country put in place an online regulated system to allow their citizens to place wagers on any gambling sites safer. For now, the CGA is looking forward to taking part in the government’s planned dialogues with this industry’s stakeholders.

Pennsylvania’s Online Gambling Launch

Pennsylvania will be the fourth state in the US to launch and legalize online casinos. It was previously announced that PA online casino and poker servers should be up in at least the first quarter of 2019.

However, because of the recent DOJ interpretation of the Wire Act of 1961, the PA’s Gaming Control Board decided to delay the launch for a bit.

It is expected that most online casinos in PA will then be launched in mid-2019, where the earliest target date is in mid-June. This was as instructed by the PA’s Gaming Control Board, and they expect online casinos to comply.

For now, if you’re in PA but can’t wait to play online casino games, you can check the top betting sites online. There are some casino sites that can give you insights about the best casinos you can find on the web. This site will also let you know whether an online casino will accept bettors from your place.

Remote Gambling Bill in the Netherlands

Like a lot of European countries, the Netherlands is deemed lax when it comes to their laws about gambling in any form. However, before 2012, when it comes to online gambling, the Dutch community seems to be restricted about playing casinos online.

Back then, the Dutch people are allowed to place their bets online, but this was only through local servers, which at that time was limited. However, even if more and more websites are starting to get based in the Netherlands, there are still Dutch people who’re place their bets on foreign casino websites that go unnoticed.

Because of this, a bill was submitted to allow Netherland’s government to issue licenses to foreign websites and let them legally accept wagers from the Dutch citizens.

On the 19th of February, the Netherland’s senate placed votes on the Remote Gambling Bill, which already passed the Ditch parliament three years ago. The result was much anticipated and is now good news to foreign online casinos.

Sometime next year, the Dutch government will start to issue online gambling licenses to foreign casino websites and end the monopoly of online gambling in the country. Analysts shared that the process of issuing online gambling licenses might start in January 2021.

Next year may only be the start of application requests from foreign and local stakeholders. The only problem that some foreign casinos that may have to face are the “cooling period”. This is a proposal by the Dutch Minister of Legal Protection that would not allow operators who have been accepting bets from the Dutch citizens prior to the legalization for two years.

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