A guide on how to protect yourself from hackers hacking crypto wallets
Take a look at what happens when someone tries to hack into a crypto wallet and how investors can protect themselves.
Hackers target cryptocurrency wallets. How do they achieve this and what can investors do to protect themselves?
In the past, when people wanted to invest in something, they went to a bank or some other financial institution.
But nowadays, with the advent of cryptocurrency and blockchain technology, there is a whole new way for investors to get involved: through digital currency wallets.
And while this is undoubtedly an exciting development that opens up more investment opportunities than ever before, it also introduces some potential risks that investors should be aware of.
Let’s take a look at what happens when someone tries to hack into a crypto wallet and how investors can protect themselves against such attacks.
But let’s first see how hackers break into cryptocurrency wallets before discussing how investors can protect themselves. The Metivers team has compiled a list of the tactics they employ.
1) Phishing – A hacker sends an email with a link that appears to be from a trusted 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 hacking techniques. social engineering such as tricking someone into clicking on something that looks benign but has malicious intent.
2) 2FA SMS verification exploits
One of the most commonly used verification technologies 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 card swapping schemes consist of impersonating a target and deceiving them. Arrange for telecommunications 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 target popular operating systems, such as Windows and macOS, using numerous versions of malware. Viruses are able to detect copied cryptocurrency addresses and exchange them for wallet addresses belonging to hackers. Successful exchanges usually result in cryptocurrency being sent to unwitting addresses controlled by hackers.
Earlier versions of malware mainly infected systems by tricking victims into downloading malware. However, some targets today are redirected to malware-infected websites. The worms immediately start looking for exploits on the website and start infecting the clipboard modules.
Additionally, employees of crypto exchanges have been targeted. Compromising the 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 investor holds large crypto holdings and is concerned about hacking, it is recommended to use a non-custodial wallet. Noncustodial 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, cyberattacks and malware and only require a PIN code to access private keys.
Some hardware wallets have a multi-signature feature for extra protection and use multiple keys. Keys can be distributed to people with an interest in the holdings.
https://metivers.com/nano-x provides hardware wallets with a multi-signature (multi-sig) option.
Cryptocurrency hardware wallets provide 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 thousands of different cryptocurrencies on a single device.
The Metivers team also reviewed the best hardware wallet for 2022 here: https://metivers.com/best-hardware-crypto-wallet/
For more information on cryptoverse tactics and tips, see https://metivers.com/
Name: Chris White
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