Read this blog post to find out how criminals can steal your cryptocurrency, and what you can do to protect yourself.
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In the early days of Bitcoin and other cryptocurrencies, it was common for individuals to store their coins on their personal computers in a “wallet” file. Today, with the price of some coins exceeding $10,000, it’s not surprising that criminals are targeting crypto wallets in hopes of stealing funds. Here are some of the more common ways that thieves have stolen crypto funds:
-Phishing attacks: Phishing attacks are a type of social engineering attack in which the attacker attempts to trick the victim into providing personal information or approving a transaction. The attacker may use a fake website or send an email that appears to be from a legitimate exchange or wallet provider. Once the victim provides their information or approves a transaction, the attacker can then steal the victim’s funds.
-Malware attacks: Malware is malicious software that can be installed on a victim’s computer without their knowledge. Once installed, malware can perform a variety of actions, including stealing information or approving transactions without the victim’s knowledge. Criminals have used malware to target Bitcoin and other cryptocurrency wallets stored on victims’ computers.
-Hardware wallet attacks: Hardware wallets are physical devices designed to store cryptocurrency offline in order to provide increased security. Despite their increased security, hardware wallets can still be attacked by criminals. One common method is called an “evil maid attack”, in which the attacker gains physical access to the victim’s device and then installs malware on it. Another method is to Trick victims into reveals their PIN or recovery seed by pretending to be customer support for the wallet provider. Once the attacker has access to the PIN or recovery seed, they can then access the victim’s funds.
These are just some of the more common ways that criminals have stolen cryptocurrency from victims. If you own cryptocurrency, it’s important to take steps to protect your coins from theft. Some recommended security measures include storing your coins in a cold storage wallet, using a hardware wallet if possible, and only dealing with reputable exchanges and service providers.
What is Cryptocurrency?
Cryptocurrency is a digital or virtual currency that uses cryptography for security. A cryptocurrency is difficult to counterfeit because of this security feature. A defining feature of a cryptocurrency, and arguably its biggest allure, is its organic nature; it is not issued by any central authority, rendering it theoretically immune to government interference or manipulation.
Cryptocurrencies are decentralized, meaning they are not subject to government or financial institution control. The most well-known cryptocurrency is Bitcoin, but there are many different types of cryptocurrency including Ethereum, Litecoin, Ripple and more.
How do people steal cryptocurrency?
Cryptocurrency theft is a big problem. There are a few ways people can go about stealing cryptocurrency. Let’s talk about some of the most common ways people steal cryptocurrency.
One of the most common ways for people to steal cryptocurrency is by hacking into exchanges. An exchange is a platform that allows users to buy and sell cryptocurrency. These platforms usually store large amounts of cryptocurrency in what is known as a “hot wallet”. A hot wallet is a digital wallet that is connected to the internet.
While most exchanges have security measures in place to protect their hot wallets from being hacked, they are not perfect. In fact, there have been several well-publicized hacks of exchanges in recent years. One of the most famous was the 2014 Mt. Gox hack, in which 850,000 Bitcoin were stolen. This hack resulted in the collapse of Mt. Gox, one of the largest Bitcoin exchanges at the time.
Other well-known hacks include the 2016 Bitfinex hack, in which 120,000 Bitcoin were stolen, and the 2018 Coincheck hack, in which 523 million NEM were stolen. These hacks have led to billions of dollars’ worth of cryptocurrency being stolen from exchanges.
Hacking wallets is possibly the most common way that people have their cryptocurrency stolen. A wallet is essentially a set of key codes that allow you to access your bitcoin or other cryptocurrency. These key codes are usually stored in an online “wallet” which can be hacked like any other computer system.
Another way that people can hack into your wallet is by using phishing attacks. This is where they will send you an email or message that looks like it’s from your wallet provider, but it actually contains a link to a fake website. Once you input your key codes into this fake site, the hackers will then have access to your wallet.
It’s also possible for people to physically steal your key codes if they have access to your physical device, such as your computer or phone. This is why it’s important to make sure that you have a strong password on your device and that you keep your key codes backed up in a safe place.
How to protect your cryptocurrency
Crypto wallets are designed to be secure, but there are still ways for someone to steal your cryptocurrency. If you store your crypto on an exchange, you are at risk of the exchange being hacked. You are also at risk if you use a weak or compromised wallet. In this article, we will look at how you can protect your cryptocurrency.
Use a strong password
Using a strong password is one of the most important things you can do to protect your cryptocurrency. A strong password should be at least 8 characters long and contain a mix of uppercase and lowercase letters, numbers, and symbols. Avoid using easily guessed words like your name or birth date, and don’t reuse passwords from other websites. You should also enable two-factor authentication whenever possible.
Use a hardware wallet
One way to protect your cryptocurrency is to store it in a hardware wallet—a physical device that stores your private keys and public keys. Ledger and Trezor are two of the most popular hardware wallets on the market.
Use a reputable exchange
The first step in preventing your cryptocurrency from being stolen is to use a reputable exchange. There are many exchanges available, but not all of them are created equal. Some exchanges have been known to be hackable, and some have been known to be unreliable. Do your research and only use exchanges that have a good reputation.
Another way to protect your cryptocurrency is to store it in a wallet that is not connected to the internet. This is called a cold storage wallet, and it is one of the most secure ways to store your currency.
In conclusion, it is important to remember that cryptocurrency theft can happen in a variety of ways. Whether it is through phishing scams, malware, or simply by stealing your private keys, there are many risks to consider when holding digital assets. While there is no foolproof way to completely protect yourself from thieves, by following best practices and keeping your crypto in a secure wallet, you can minimize your chances of becoming a victim.