It’s no secret that hackers aim to steal from cryptocurrency wallets. How, therefore, do they gain access, and what can be done to protect one’s assets?
The cryptocurrency market has presented everyday people all around the world with a wide variety of new investing opportunities. However, along with the increased possibilities, there are also risks.
One of them is when your cryptocurrency wallet gets hacked. Although the risk of such attacks is high, there are numerous measures you may take to keep yourself safe.
Let’s explore the ways in which hackers can access your wallet and the precautions you should take to keep them out.
How Hackers Get Into Cryptocurrency Wallets?
It is important to understand how hackers gain access to cryptocurrency wallets before tackling the methods of protecting them. Here are a few of the techniques they use.
When hackers need to steal sensitive information, they often resort to phishing attempts. In order to scam victims, cybercriminals create fake versions of popular cryptocurrency exchanges. These techniques also make use of intentionally picked domain names that are intended to mislead.
Cloned websites look nearly identical to the originals, making it easy to trick victims into entering their crypto account details on them. As soon as the victims enter their details, the information will be sent to the hackers. As soon as they have this information, they can break into the victim’s real account on the real crypto website and steal their funds.
Fake Hardware Wallets
You should be aware of another type of hacking called fake hardware wallets. Hackers typically focus their attention on individuals who already possess a hardware wallet, and then they attempt to deceive those folks into employing a modified substitute that has been developed to steal cryptographic keys.
Initially, the victim will be duped into opening a package containing the hacked hardware wallet. Typically, a note is attached to the package alerting the victim that their existing device is unsecure and they should replace it with the wallet that was given.
Instructions on how to recover the recovery key for the user’s crypto wallet are typically included with the replacement device that is supplied. Once the keys have been entered, a record of them is made and sent to the hackers, who can then use them to access the blockchain-based wallet. In other words, if they can get into your wallet, they can steal the money.
Remember that your hardware wallet provider will never ask you for your recovery keys. Furthermore, replacements are never sent unless you specifically request them.
SMS 2FA Verification Exploits
SMS-based two-factor authentication (2FA) is one of the most widely utilized verification methods available today. On the other hand, it is vulnerable to attacks involving social engineering and endpoint exploitation.
Malicious attackers may occasionally use SIM swapping to intercept SMS verification messages. To pull off a SIM swap, an imposter poses as the card’s owner to convince the telecom company’s staff to hand over possession of the owner’s SIM card. Hackers can eavesdrop on 2FA messages related to a user’s cryptocurrency accounts when ownership is transferred.
Hackers are attacking well-known operating systems like Windows and macOS with a variety of malware variants. Some of the malwares are designed to recognize cloned cryptocurrency addresses and replace them with hacker-owned wallet addresses. Successful transactions typically result in cryptocurrency being transmitted to unauthorized addresses under the control of hackers.
Previous variants of the malware relied heavily on fooling users into downloading the software with malware. However, in the present day, victims are sometimes routed to malicious websites. When a user visits the site, the worms instantly begin looking for vulnerabilities in their system and infecting system-wide clipboard components.
And in certain cases, the staff of cryptocurrency exchanges are the ones who are attacked. Being able to access their computers is a common method for breaching crucial exchange infrastructure.
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How to Secure Your Crypto Wallet
Now that you understand the methods hackers use to access cryptocurrency wallets, we can go on to discussing how to keep your own funds safe. Here are four approaches to take.
Use a Non-Custodial Wallet
It is advisable to use a non-custodial wallet if you have a large amount of cryptocurrency and are worried about the security of your funds. If you don’t want unauthorized access, non-custodial wallets are the better option because they provide you complete control over your cryptographic keys.
However, additional care must be taken when storing your keys if you choose for a non-custodial wallet. If they are lost, you can lose your cryptocurrency assets.
Having a well-thought-out alternative plan is essential. While some users may be okay with simply writing their keys down on paper, others may prefer the added security of a hardware wallet. As they can only be accessed with a PIN, they add an added degree of security against malicious software, phishing websites, and cyber attacks.
Avoid Unregulated Trading Platforms
Keeping cryptocurrency assets on an unregulated exchange is irresponsible and should be avoided at all costs. This is due to the fact that their safety precautions do not typically meet the same criteria as those of regulated platforms. They frequently operate under the control of anonymous management. If this is the case, then there will be relatively few s in the occasion that funds are lost.
Use Two-Factor Authentication Apps
If you maintain your cryptocurrency on a regulated exchange, the best way to protect your account is to utilize app-based two-factor authentication in addition to SMS verification. This will ensure that only you can access your cryptocurrency. This is due to the fact that SMS-based two-factor authentication is more susceptible to being hacked.
Avoid Using Same Email and Crypto Passwords
When you reuse passwords across numerous platforms, you significantly increase the likelihood that hackers will use those identical credentials to breach associated accounts.
Utilizing one-of-a-kind passwords that are challenging to recall and then storing those passwords in a password management service that encrypts them is one of the most effective ways to steer clear of this practice.
Most of the best password managers also include the option to automatically change your passwords and generate new, random ones.
Protect Your Cryptocurrency Wallets from Hackers
As more average people put their money into a market that is still in its infancy but is rapidly maturing, ensuring the safety of cryptocurrency wallets has become an increasingly pressing concern.
Since hackers’ methods are always changing, anyone dealing in cryptocurrency should always take the best precautions to secure their wallets. You should now be more aware of what to watch out for and how to better protect your funds after reading this post.