If you use a Bitcoin wallet on your Android phone, you’ll want to update to the latest version as soon as it’s available. According to PCWorld on Aug. 12, any Bitcoin wallet run through Android is vulnerable to theft due to an error in Android’s operating system.
The function that makes the Bitcoin exchange secure—Android’s ability to generate random numbers—has been exposed to have “a number of serious vulnerabilities,” according to PCWorld. The system issues a private key and a public key that allow for the exchange of Bitcoins with another party. Bitcoin developer Mike Hearn learned that the private key, the key that a user must provide to verify the transfer, has weaknesses and can be ”solved,” resulting in a hacker being able to steal money. ARS Technica reports that as of this morning, $5,720 have been stolen.
BBC used this instance to highlight that future virtual currencies will likely face the same problem Bitcoin is facing. They also cited that virtual currencies are being scrutinized for legality in terms of how they comply with money transfer rules.
via Examiner National Edition Gadgets & Tech Channel Articles http://www.examiner.com/article/bitcoin-vulnerability-all-android-bitcoin-wallets-are-vulnerable-to-theft?cid=roadrunner