How Hackers Hack Crypto Wallets

5 mins read
  • Every cryptocurrency owner must pay attention to their devices, to protect their wallets.
  • Fraudsters use malware to hack crypto wallet.
  • Scammers compromise browser extensions to change the wallet address to receive transactions whenever you trade.
  • They can secretly access your crypto wallet via public Wi-Fi to get access to your passwords and other confidential information.

Crypto wallets are by far the most target for hackers in this growing digital finance space. Through public WI-FI, browser extensions, private keys, exposing your email passwords, and confidential information, scammers can gain control of these to hack your crypto wallet if you are not careful. 

Let’s see a few popular tactics utilized by imposters in hacking crypto wallets.

Malware

Intruders use a computer virus as a trick to hack operating systems such as Windows and macOS. Make sure to update your computer always to securely protect your wallet from malware attacks. Do not download anything or click links you don’t know the source. It is absolutely necessary not to trust pop-up windows that instruct you to download software as it may contain harmful software intended to hack your wallet. Lastly, before downloading email attachments or images, make sure you trust the source.

SIM Swap Scam

Two-factor authentication (2FA) via SMS is one of the most common techniques hackers deploy to compromise users’ wallets. In an attempt to hijack a wallet, fraudsters usually intercept SMS verification messages through SIM swapping to impersonate users’ crypto wallets. 

Additionally, hackers often trick telecom employees into transferring SIM card numbers and their data from the owner to them. By doing this, they intercept 2FA messages to the user’s crypto account making them gain control over it. 

If possible, we recommend you to use more authenticator apps, instead of SIM-based 2FA. 

Access to online wallets via public Wi-Fi

Do you love using public Wi-Fi? So do scammers! You can easily get hacked by regularly opening your crypto wallet via public Wi-Fi. Fraudsters mostly compromise the IP address of public Wi-Fi to get control of users’ data. Conversely, instead of sharing the data directly between server and client, the link becomes broken by another element. 

Avoid connecting your device to any Wi-Fi named “free internet” or “free Wi-Fi”. Scammers use this Wi-Fi naming technique to hack you. Use Antivirus and Virtual Private Network (VPN) to protect yourself. 

Browser Extension Hack

Chrome extensions have useful tools that enhance the browsing experience but some extensions contain viruses that breach your computer security. 

They end up interchanging your original crypto wallet address with their fake address to receive any deposit or transactions you do. Note that, if your crypto wallet gets hacked, your crypto services provider may not know if you have been hacked or not. This is because the hacker types your passwords and data correctly and confirms all security alerts in your email to tricks your services provider you are the real person behind it. 

Avoid downloading and adding random browser extensions and login to your exchange account on browser account without extension (on Chrome they are called Profiles).

Conclusion

At LYOPAY, users’ security is our top priority. We advise all of our users to keep passwords and other confidential information in a safe place. Make sure to write down your passwords secretly in a book so you don’t forget them. Especially for the 12 words key, never write them on your devices: do by hand. 

Refrain from clicking on links you don’t trust the source. Don’t access your wallet via public Wi-Fi as carries a high risk.

Keep your funds in different wallets, including cold wallet not connected to internet. Visit https://shop.lyotechlabs.com/ and know more about LYOPAY Cold Wallet-S, the solution to storage your cryptocurrencies without connecting the wallet online.

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