Hackers are targeting cryptocurrency wallets. How do they get into these, and what can investors do to protect themselves?
In the past, when people wanted to invest in something they would go to a bank or other financial institution.
But these days, with the advent of cryptocurrency and blockchain technology, there’s an entirely new way for investors to get involved: through digital currency wallets.
And while this is definitely an exciting development that opens up more opportunities for investing than ever before – it also introduces some potential risks that investors need to be aware of.
Let’s take a look at what happens when someone tries to hack a crypto wallet and how investors can protect themselves from such attacks.
But first lets look at how hackers get into cryptocurrency wallets before discussing how investors can protect themselves. Metivers’s team compiled a list of the tactics they employ.
1) Phishing – A hacker sends an email with a link that looks like it’s coming from a reputable source but actually goes somewhere else. The user clicks on the link and their information is compromised once they enter their username or password or download malware onto their device either unknowingly or through social engineering techniques such as tricking someone into clicking on something that appears benign but has malicious intent behind it.
2) SMS 2FA Verification Exploits
One of the most commonly used technologies for verification today, two-factor authentication (2FA), can be vulnerable to endpoint exploits and social engineering attacks.
SIM swapping can be used by malicious actors to intercept SMS verification messages. Sim-swap ploys involve impersonating a target and tricking them Getting telecom employees to transfer control of a SIM card number to the owner. Transfer of ownership allows hackers to intercept 2FA messages connected to a user’s crypto accounts.
Hackers are targeting popular operating systems, such as Windows and macOS, using numerous versions of malware. Viruses are able to detect copied cryptocurrency addresses and swap them for wallet addresses belonging to hackers. Interchanges that succeed usually result in cryptocurrency being sent to unintended addresses controlled by hackers.
Malware earlier versions primarily infected systems by tricking victims into downloading malicious software. However, some targets today are redirected to websites infected with malware. The worms start searching for exploits on the website immediately and begin infecting clipboard modules.
Additionally, crypto exchange employees have been targeted. Compromising exchange infrastructure is usually possible with access to their computers.
Here is how investors can protect their investments:
Use a Non-Custodial Wallet
When an investors have substantial crypto holdings and are concerned about hacking, it is recommended that they use a non-custodial wallet. Non-custodial wallets give them full control of their crypto wallet keys and are preferred if they don’t want third parties to have access to the wallet.
And the best option is to use a hardware wallet. They provide an extra layer of protection against phishing sites, cyber-attacks, and malware and just require a pin to access the private keys.
Some hardware wallets have a multi-sig feature for additional protection and utilize multiple keys. The keys can be distributed among people with an interest in the holdings.
https://metivers.com/nano-x provides hardware wallets with a multi-signature (multi-sig) option.
Hardware cryptocurrency wallets deliver high-level security through the use of a secure chip and proprietary operating system. Investors have full control over their private keys.
A good hardware wallet allows investors to store 1000s of different cryptocurrencies on one device.
Metivers’ team has also reviewed the best hardware wallet for 2022 here: https://metivers.com/best-hardware-crypto-wallet/
For more information about tactics and tips related to cryptoverse, see https://metivers.com/
Release ID: 89062558