Can your crypto wallet be hacked? How to prevent hacking.
This article will give you a solid understanding of the next steps to take after you realize that your wallet has been compromised.
Welcome to the world of cryptocurrency! While it’s a relatively new way to store and spend currency, cryptocurrency has already introduced a new type of risk: being hacked. But don’t worry—once you learn how to use your cryptocurrency securely, the chances of it being stolen will be very low. Here are some of the most common ways hackers steal people’s cryptocurrency.
How hackers get into cryptocurrency wallets
Phishing attacks are one of the most common ways a hacker will try to get your password. Phishing attacks can happen in many forms, including fake emails, fake websites, and fraudulent ads.
If you receive an email that asks for your personal information or directs you to a website asking for your password details, think twice before clicking on any links or opening any attachments. These could be phishing scams by hackers to steal your identity and money from cryptocurrency wallets.
Always check the URL (web address) of the website before entering sensitive information into it—check that it is correct by typing it into your browser rather than clicking on a link within an email message (if possible).
Also, make sure that all of the mistakes in the web addresses have been fixed (e.g., not “www” instead of “weww”); hackers often make fake sites with similar-looking addresses to make them look official. Still, they send people to fake domains where they can steal login information or install malware on users’ computers by tricking them into downloading software updates.
Fake Hardware Wallets
You’re probably aware that hardware wallets are the safest way to store your cryptocurrency. They are designed to prevent hackers from accessing your private keys, and they’re so popular that you may have heard of them before.
But what if I told you about a fake hardware wallet? It’s real enough to look like one, but it won’t protect your coins from being stolen by hackers.
These devices can be easily found on the internet for as little as USD 10, and they’re often advertised as “genuine” or “original.” You might think this sounds too good to be true—and maybe it is—but even if it isn’t, there are still ways that scammers can get into these devices and steal your crypto with relative ease.
SMS 2FA Verification Exploits
One of the most common ways to gain access to cryptocurrency wallets is via SMS 2FA. This type of authentication uses a cell phone number instead of a password, meaning anyone with your phone number can bypass the login screen and access your cryptocurrency wallet. Once inside, they can move funds as they please.
Another way hackers get into cryptocurrencies is via hardware wallets (wallets that store your private keys in physical devices). The most popular type of hardware wallets is Ledger Nano S and Trezor. These devices use USB ports for connection, so if someone gets their hands on your device’s cable or the device itself (such as by stealing it), they will be able to connect their computer to yours and transfer all of the funds from your wallet without needing any secret code at all.
Suppose a company decides to update its firmware/software update process without taking proper precautions against potential attacks (which could include checking whether any data has been tampered with before installing an update).
In that case, hackers could exploit these vulnerabilities by using them against users who rely on these updates instead of manually checking each file name individually. It would take forever but would ultimately ensure safety from potential threats.
It’s not just hackers creating malicious software that can be used to steal your cryptocurrency. For example, you might already have a virus on your computer, and you could be spreading it when you use public wifi. If it hasn’t been updated recently, the malware installed on your device can steal information from the wallet application or laptop browser. A hacker could also create an email with a link that takes the user to a fake website where they enter their private keys or passwords (more on this in a moment).
Being hacked is easy if you don’t follow basic security procedures.
One of the most common ways hackers steal cryptocurrency is by tricking people into giving them their private keys. This can happen in a few ways, but the most common method is convincing you to provide them with your password or 2FA code.
To prevent yourself from being phished:
- Don’t use SMS 2FA
- Only use hardware wallets that have physical buttons.
Now that you know how hackers use phishing and keyloggers to steal your cryptocurrency, hopefully, you can avoid them. But remember that these methods aren’t foolproof, especially if you don’t keep your devices safe from potential threats.
However, learning to purchase safely should minimize your chances of getting hacked. And knowing what to do if it happens can help you stay confident that your money is safe. So, above all else, we hope this article helps you learn more about how to protect yourself and cryptocurrency security. If you have any questions or concerns, contact us via our contact page.