Most used methods of hacking
Phishing attacks
Hackers frequently use phishing tactics to steal personal information. To deceive targets, attackers use cloned websites that seem eerily similar to actual cryptocurrency platforms. Deliberately misleading domain names are also used in the schemes.Targets are easily hoodwinked into signing onto the cloned websites and using their crypto account credentials to log in because the web pages are often indistinguishable. The data is given to the hackers when this information is entered. They utilize this information to gain access to the victim's real account on a legitimate cryptocurrency website.
Fake hardware wallets
Another type of hacking to be cautious of is the use of fake hardware wallets. Hackers usually target people who already have a hardware wallet and convince them to use a customized version meant to obtain crypto keys.The target receives a package containing the modified hardware wallet in the first phase of the scam. A letter is frequently included in the package informing the victim that their existing device is susceptible and that the provided wallet should be used instead. The instructions on the supplied replacement normally ask the user to connect the device to a computer and enter their crypto wallet recovery key. Once the keys have been entered, they are recorded and sent to the hackers, who can then use them to open the blockchain wallet. It's worth noting that users are never asked for their recovery keys by hardware wallet providers. Furthermore, they never send replacements unless you specifically request one.
SMS 2FA verification exploits
One of the most widely utilized verification mechanisms nowadays is two-factor authentication (2FA) via SMS. Endpoint exploits and social engineering attacks are, nonetheless, possible.Malicious hackers can sometimes intercept SMS verification messages by switching SIM cards. SIM-swap ploys entail impersonating a target and tricking telecom staff into handing over ownership of a SIM card number to the imposter. Hackers can intercept 2FA messages tied to a user's crypto accounts using transfer of ownership. Signaling System 7 (SS7) elements are used in more complex 2FA interception techniques. The SS7 protocol is a telecommunications protocol that is used to communicate between different telephone networks. It also plays a crucial role in the 2FA SMS process.
Malware
Hackers are targeting major operating systems like Windows and macOS with a variety of malware. Some viruses are designed to detect copied bitcoin addresses and replace them with hacker wallet addresses. In most cases, successful exchanges result in cryptocurrency being transferred to unanticipated addresses controlled by hackers.
How to protect your crypto wallets
Use a non custodial wallet
A non-custodial wallet is recommended if you have big crypto holdings and fear your assets are at risk of being compromised. Non-custodial wallets allow you complete control over your crypto wallet keys and are recommended if you don't want third parties to have access to them. Using a non-custodial wallet, on the other hand, requires a larger level of responsibility in terms of key storage.It's critical to have a solid backup plan in place. Some users simply scribble their keys on a piece of paper, but using a hardware wallet is the ideal choice. They add an extra degree of security against phishing sites, cyber-attacks, and malware, and accessing the private keys is as simple as entering a pin.
Avoid unregulated exchanges
Keeping cryptocurrency holdings on an unregulated exchange is irresponsible. This is due to the fact that their security measures are frequently not up to par with regulated ones. In many circumstances, the people in charge are nameless and faceless. This means that if funds are misplaced, there will be limited consequences. Use only trustworthy exchanges.
Use App-based Two-factor authentication
If you keep your crypto on a regulated exchange, you should use app-based two-factor authentication in addition to SMS verification to protect your account. This is because SMS-based 2FA is more readily hacked.
Don’t reuse email and crypto account passwords
Hackers may use the same passwords to compromise related accounts if you reuse passwords across numerous sites. Using unique passwords that are difficult to remember and storing them in a password management service that keeps them encrypted is one of the best strategies to avoid this problem.
Published: 05/16/2022