On Monday, Bitwage announced its partnership with a top insurance carrier. It didn’t reveal its name, however.
"All I can say is that it is a very big insurance company and it is not the one used by Coinbase nor Xapo", said the company’s representative.
Check against attacks
Bitwage states that it aligns with ISO and NIST standards, as well as “the industry’s best practices for financial service organizations”. It includes banking grade encryption of user data, strict password management policies, two-factor authentication logins to all sensitive data and processes, as well as annual audits that include a physical audit of their businesses headquarters’ address.
The press release claims that security policies and procedures at Bitwage were put through a rigorous vetting procedure by top-rated cyber liability insurance experts. They were also checked by an insurance carrier against cyber-attacks and obtained an AM Best Rating of A and above.
The released statement claims that Bitwage does not store an inventory of Bitcoins, nor does the company hold customer funds (although they make it very easy to send funds to their Cloud Savings solution powered by Uphold). This means that the funds are held only for a very brief period of time and thus the risk of loss from malicious actors, or otherwise is minimized. The payment of wages is the culmination of the effort and hard work of individuals, and the company wants to handle them with the utmost care and level of security, as they continue to improve and strengthen their security program.