5 Shocking Ways Hackers Can Steal Your Cryptocurrency - Learn How To Keep Them Safe Now!
Cryptocurrency has attracted a lot of attention from investors who want to diversify their portfolio. However, the digital nature of cryptocurrency also means that it is vulnerable to hacking attempts. Here are 5 shocking ways hackers can steal your cryptocurrency – and how you can keep it safe.
1. Phishing attacks
Phishing attacks are one of the most common ways hackers steal cryptocurrency. They use fake websites or emails to trick users into giving away their login credentials or private keys. Once the hackers have access to the user’s account, they can steal their cryptocurrency.
To prevent phishing attacks, always make sure that you are on the correct website and never click on suspicious links. Use two-factor authentication and keep your private keys safe.
2. Malware
Malware is another common way that hackers can steal cryptocurrency. They use malicious software to gain access to a user’s device and steal their private keys. Malware can be delivered through infected files, email attachments or even websites.
To protect yourself from malware, always keep your device software up to date and avoid downloading files or software from untrusted sources. Use anti-virus software and regularly scan your device for malware.
3. Fake wallets
Fake wallets are another way that hackers can steal cryptocurrency. They create fake wallets that look like legitimate ones and trick users into using them. Once the users transfer their cryptocurrency to the fake wallet, the hackers transfer it to their own wallet.
To avoid fake wallets, always double-check the wallet address before sending cryptocurrency. Use reputable wallets and check their reviews before downloading them.
4. SIM swapping
SIM swapping is a relatively new technique that hackers use to steal cryptocurrency. They call the victim’s mobile phone company and convince them to transfer the victim’s phone number to a new SIM card. Once they have access to the phone number, they can reset passwords and gain access to cryptocurrency accounts.
To prevent SIM swapping, always use two-factor authentication that does not rely on a phone number. Use strong passwords and use a password manager to keep them safe.
5. Brute force attacks
Brute force attacks are when hackers use software to randomly guess passwords until they find the correct one. This is a slow and ineffective way to steal cryptocurrency, but it can still be successful if the password is weak.
To prevent brute force attacks, always use strong passwords that are at least 12 characters long and use a combination of upper and lower case letters, numbers and symbols.
In conclusion, cryptocurrency can be a valuable investment, but it is important to keep it safe from hackers. By following these tips, you can protect your cryptocurrency and minimize the risk of theft. Stay safe and happy investing!
How much cryptocurrency do you have lying around? Wait, don’t answer that – we are not interested to know. But as long as you’re thinking about it, why not go over to your account and check all your funds just to be safe? Your password is strong and unique, right? Okay, type it in, bypass that annoying suggestion that you should turn on 2FA and … what’s going on? All your balances are at zero! Hang on – that link you visited is not the real site you always go to.
If you spotted all the security mistakes in that paragraph, your cryptocurrency stash is probably doing okay. However, depending on how much you have and how paranoid you are, there’s probably more you can do to make sure your crypto doesn’t mysteriously go missing.
1. Get your crypto off the exchanges
MtGox, Coincheck, Binance, Cryptopia, QuadrigaCX … big, trusted exchanges lose crypto all the time, and you don’t want to be part of that statistic.
If you have any significant amount of cryptocurrency, you should set up a desktop, mobile, hardware, or even paper wallet rather than keep your crypto on an exchange. Do your research to find a trusted wallet that suits your needs, make sure you keep it up to date, and only keep the crypto you intend to trade on exchanges.
2. Strengthen and secure your passwords/recovery phrases
If you reuse passwords anywhere, you should stop. That goes double for your crypto. Use strong, unique passwords on everything and don’t store them anywhere a hacker could get to them. Using a password manager or securely-stored hard copies can help.
Wallet recovery phrases (or “seed phrases”) are equally sensitive. These are lists of words that help you recover the funds from a wallet in case something happens to the device it’s installed on. Anyone else with the words can also get into your wallet, though, so it’s essential to keep these secret and, ideally, separate from your devices.
Encrypting your words and/or storing them on air-gapped devices is one approach, but you can also opt for the old-fashioned route and keep multiple hard copies in different physical locations. Heck, you can write your info in steel if you want. Storing seed phrases as any kind of file on an Internet-connected device isn’t advisable, though.
3. Enable Two-Factor Authentication (2FA)
Most crypto exchanges and wallets give their users the option to use two-factor authentication as an extra layer of security to protect logins and transactions. If available, go with an app-based option like Google Authenticator or Authy, as text messages are vulnerable to things like SIM-swapping.
Note: you can (theoretically) avoid SIM-swapping hacks by getting your phone provider to put a porting/swapping lock on your account or by switching all your 2FA over to a VoIP number.
4. Back up everything!
Hackers are a major threat to your crypto assets, but the second-biggest danger is you. If you lose your password, recovery phrase, key, or other crypto-information, your chances of getting your lost money back are pretty slim. It’s estimated that between 2.78 and 3.79 million (17-23%) of all Bitcoins have been lost, rendering them pretty much inaccessible to everyone forever. In keeping with the advice above, it’s best to keep your information on physical media in a secure place or on air-gapped digital media.
5. Decentralize
If you’re into crypto, I’m sure I don’t have to preach to you about the virtues of decentralization. Keeping your crypto-assets spread over several devices and wallets (with multiple copies of each) will help further insulate you from any potential loss or theft. Just be sure you can stay organized enough to keep track of where all your different coins are.
6. Watch out for scams
The complexity and anonymity of cryptocurrency make it a popular target for scams. Here are a few things to be on the lookout for:
- Fake URLs: Phishing and typosquatting are big problems in crypto. If you click on a link, double-check the URL to make sure it’s the right one. Some changes are especially hard to see, like the infamous Binance URL that put dots under the n’s in Biṇaṇ The safest way to avoid this is manually typing in the URL. If you do fall prey to a malicious link, change your password ASAP!Scams: No one is giving away free crypto, your computer probably isn’t hacked, and no real business will ever call you asking for your password. If you see something that looks fishy in your inbox or online, Google it first.Don’t be a target: Letting everyone know you have a lot of crypto could put you that much higher on someone’s list. Keep it on the down-low.
7. Exercise general cybersecurity
There are some things that people in general should be doing to keep their tech safe, and that’s especially true if you have cryptocurrency lying around:
- Don’t use public Wi-Fi without a VPNHave antivirus software installed and runningUpdate your softwareBrowse the Internet safelyKeep an eye out for suspicious activity on your devices or in your accounts
Crypto is complicated
Cryptocurrencies can be prohibitively difficult to use and store safely, which is probably why they haven’t replaced traditional currency yet. Lost coins stay lost and thieves love taking advantage of people who don’t have their cryptocurrencies appropriately secured. There’s no guarantee – perfectly smart, tech-savvy people can slip up on security – but using secure wallets and passwords, enabling 2FA, having backups, and exercising general common sense should keep your crypto reasonably safe! Some of these steps will seem like overkill to people who aren’t heavily invested, but as the value of your coins increases, so should your security.
Image credits: Decentralization diagram, Crypto exchange 312, Cryptosteel, Exodus Wallet
Andrew Braun is a lifelong tech enthusiast with a wide range of interests, including travel, economics, math, data analysis, fitness, and more. He is an advocate of cryptocurrencies and other decentralized technologies, and hopes to see new generations of innovation continue to outdo each other.
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