API Key Theft
API key theft involves the unauthorized acquisition of the keys used to programmatically interact with a cryptocurrency exchange. These keys often have permissions for trading or withdrawing funds, making them a high-value target for attackers.
If an API key is stolen, the attacker can execute trades or withdraw assets without needing the user's primary login credentials. This often happens if the key is accidentally uploaded to a public repository or stored in an insecure file.
Secure management of API keys, including limiting permissions and using IP whitelisting, is critical for automated trading security.