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Cryptocurrency wallet is used as a relatively reliable means of saving investments, and despite the fact that it is difficult to hack it, fraudsters do not stop looking for ways to access information and steal tokens. Most often, people themselves become victims by giving fraudsters their access keys or installing malware that steals data from their computers.
There are more risks to hacking a crypto wallet if it contains a large amount of cryptocurrency. Many attackers are more interested in large-scale thefts. However, despite this, even novice investors with a small amount in their account, such as $100, cannot be sure of absolute protection against possible attacks and phishing. Cryptocurrency wallet hacking can occur when attackers gain access to keys or use social engineering. Blockchain technology seems secure, but it also has its vulnerabilities.
Sometimes users themselves also voluntarily hand over access keys. If attackers have enough information about the user, account hacking becomes quite feasible. Through social networks or other means, it is easy to find out the first name, last name and phone number.
There are even methods such as intercepting SMS messages with one-time passwords to access the wallet. But by following basic cybersecurity rules, you can effectively prevent these methods of theft: it’s important not to neglect updates, create strong passwords, properly configure permissions for hardware and applications, and avoid emailing data. Cryptocurrency wallet hacking is one of the most obvious ways to steal Bitcoin, but cautious investors who know the methods of deception usually avoid the traps of scammers.
There are many types of cryptocurrency scams, and the most well-known are the use of fake websites, phishing bitcoin wallets, and exchanges that offer limited deposit options with no withdrawal options.
Scammers are also not shy about using the names of famous personalities, such as Ilon Musk, to attract users to their websites. News about new cryptocurrency fraud schemes regularly appears on the blog of the well-known analytics company CipherTrace.
A common scheme in the U.S. is the “pump and dump” scheme, in which a new promising cryptocurrency coin is actively advertised, attracting investor interest and rapid price growth. These coins often start trading but are not added to major exchanges. They show normal growth and then the site closes and the scammers sell their assets, devaluing the value of the cryptocurrency.
Phishing
The scheme is aimed at extracting data from online wallets, especially private access keys. By stealing the necessary information, the scammers are able to easily manipulate inside the wallet in order to steal digital coins. To obtain data from users, scammers conduct mass emails to investors, offering them to go to the site with the promise of a bonus for providing a bitcoin wallet key, double the amount of funds on the wallet and other temptations. However, once the information is transmitted to this portal, the cryptocurrency wallet owner actually loses all of their tokens.
Phishing platforms can be both fake cryptocurrency trading sites and exact copies of official cryptocurrency wallets. For beginners, it is not always easy to distinguish a fake platform from the real one, as domain names, design and interface can be very similar to the original sites and applications.
Malware
The most common bitcoin-related scams involve the use of malware. Installing an infected executable file gives attackers access to a user’s private keys. To keep bitcoins safe, it is advisable to use official or expert-recommended wallets.
The internet is also rife with advertisements that aim to lure out data. In addition, ransomware can act not only through malware, but also through spam emails or phone numbers. The messages claim to have compromising information about adult website visits, theft, personal photos and sensitive investor data. They are threatened to send out this information to friends and acquaintances if they do not receive a private key or cryptocurrency ransom. The user’s own caution to be vigilant when dealing with digital assets will be a good defense against extortionists.
Fraudulent ICOs
Fraudulent ICOs are a tactic used by almost all cryptocurrency companies, for it is an effective way to attract investments for the future development of their projects.
However, fraudulent websites not only offer discounts on new cryptocurrencies in exchange for investments in existing cryptocurrencies or money, but also use different tricks to deceive. Often fake ICOs spare no money on advertising, rent and high-quality website design. But such projects are devoid of real value, they are not able to clearly formulate their goals and objectives, as well as do not have any plan of action. Their main goal is to deceive, so promises here will be very much and colorful. And buyers of new tokens have often seen their assets quickly depreciate in value.
Financial pyramids
Financial pyramids are easily recognizable by the bright advertisements placed directly on their websites. They promise instant profits, doubling your capital and incredibly high returns within just one day. However, in order to join and try to get any of these, you need to deposit a certain amount of money, and possibly even multiple times. What’s more, the sites offer commissions for bringing in new members and may even pay out commissions, but this is a drop in the ocean compared to the amounts they take from customers.
How to protect your cryptocurrency assets?
Be wary, especially when promising a lot and guaranteeing profit without risks, also the technical documents of such a site are either hidden or uninformative.
Choose a proven cryptocurrency wallet and monitor the stability of its work, do not rush to make decisions.
Choosing a wallet with private keys
For safe cryptocurrency investments, it is recommended to use reliable hardware, virtual or paper wallets. It is important to keep your access keys in a secure location and never share them with third parties. Some of the secure applications include Trezor, Trust Wallet, MetaMask, and Ledger,
If you decide to install a new wallet app, be sure to check if it is legitimate and read what permissions it asks for on your device.
Contrary to the perception that hardware wallets are secure, they aren’t immune to key leaks either.
Critical thinking and taking the time to gather technical information about the project, double-checking the data, even multiple times-all of these actions will serve you well.
Form the habit of working only with official platforms, mobile applications.
Use these tools to protect your wallet from fraudsters:
app.umbra.cash – allows you to make transactions through their website, with a pre-check of the recipient for scam.
joinfire.xyz – This is a free chrome extension that mimics Web3 transactions, showing you exactly what will go in and out of your wallet before you sign a contract.
blowfish.xyz – This is a risk assessment tool for every Web3 wallet.
And especially ! pocketuniverse.app – Pocket Universe is a free browser extension that secures your assets when signing Web3 transactions. It will help you not to make dangerous transactions. Works with most blockchains, and will show transactions that can steal your funds.
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