How Are Crypto Wallets Hacked?

With the advancement in the digital currency world, crypto captures markets in huge audiences and attracts them with its advanced features. But as we know, wherever transactions are involved, a chance of fraud increases, and to save users from this, there are crypto wallets that keep your digital assets secure.

On the one hand, you need to know about safe and secure crypto wallets; on the other hand, you must be aware of how the hackers hack these wallets.

Hacker Techniques To Attack Crypto Wallets

Phishing Attacks

One of the most common hacking techniques used by hackers is Phishing. In this, most hackers create websites that are somehow similar to the original one but rent originally. So instead of using Binance.com, they might use Binance.co, which distracts a lot of users.

When the real problem starts, people think the duplicate website is the right one and start entering their login details and account information. However, these websites are owned by hackers, and now they have all the access to your account and even your crypto wallets.

All this process results in getting hacked with nothing in hand, and the bad news is the user did not realize it immediately as there is no chance.

Fake Hardware Wallets

On number two, we have Fake Hardware Wallets in which the hackers create some fake wallets, and this time the individuals already having hardware wallets are on target. Hackers create wallets that look similar to your hardware wallet and can have access to your confidential information.

This continues as a whole process in which, initially, an individual with the hardware wallet receives a notification with a gift pack. It grabs users’ attention by saying that the hardware wallet you are using is not safe enough; you should replace it with the wallet provided. As soon as the user opens the wallet sent as a gift, it requires the recovery phrase or key.

As soon as the user enters the key, the information is immediately delivered to the hacker. Then they have access to all your credentials quickly unless you are informed and you have changed the recovery key. You must keep in mind that any of the original hardware wallets do not need a recovery key in any situation.

Two-Factor Authentication Exploits

The majority of the users think that if they have turned two-factor authentication on, they have to do nothing now, and the account is saved. Although this is one of the safest methods, there are some chances of getting hacked through this.

So basically, in two-factor authentication, a code is sent on your SIM if you have forgotten the password or changed your password so that no one else tries to log in to your account.

However, many hackers use SIM swapping, which includes tricking the telecom employees, which transfers the SIM card control to the hacker instead of the owner. This means that the message by two-factor authentication would now be received as hackers’ mobile.

Another advanced technology used by hackers is Signaling System 7 (SS7), which controls the network and has access to communication between different networks.

Malware

types of malware

Last but not least, most hackers use various ways to hack your account, and Malware is one of them. Malware is a planned and designed virus that analyzes your crypto wallet’s login details and transfers them directly to the hacker. By this, cryptocurrencies are sent to addresses that are not actual and can also cause harm.

This occurs as the users might not research properly before downloading anything and then downloading malicious software.

As of now, the internet is a whole world, and people visit several websites in a day; in this case, some malicious software detects your device and can get installed on your device, and you might not be aware of it. Mainly people dealing in crypto or crypto exchange employees are targeted by this kind of hackers.

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