Skyrocketing crypto wallet scam losses shed light on security measures – Reuters

Many people are starting to trade their cryptocurrencies through third-party wallets or services, but there are risks involved in keeping them locked in these accounts.

As the popularity of cryptocurrency has increased, so has the crime rate surrounding it. Cybercriminals have realized that with the existence of currency comes greater potential for acquiring personal wealth. Most forms of crypto-related crime include phishing scams, malware or hard drive hacking and the use of passwords, PINs or seed phrases. Many cryptocurrency users avoid these dangers by storing their funds in secure wallets that can only be accessed when connected to the internet through a device they know is secure.

As the underground market continues to grow rapidly, greedy thieves are discovering new methods eager to improve their ability to penetrate system security. To combat this new threat, it is vital for owners of digital currency to always ensure that any company used for work related to cryptocurrency transactions invokes an extremely secure environment where assets cannot be stolen during transfers from one account to another.

The latest report from the FTC shows that cryptocurrency frauds and scams have skyrocketed since 2016. From theft of investor coins to phishing emails, securing your digital currency’s sensitive information is critical for you protect against identity theft.

Having smooth crypto transactions through digital wallets on mobile and securing sensitive user information in a crypto wallet app is becoming more critical.

Let’s understand the issues facing the security measures of a digital wallet.

Mobile Crypto Wallet Platform Trust Issues

There are three types of crypto wallets: web, mobile, and desktop.

Everyone is at risk of being attacked by a cybercriminal for specific reasons.

The mobile digital wallets that are most popular for accessing personal crypto wallets online have security weaknesses.

Often they don’t check if the device is trustworthy: rooted or jailbroken, if it has a potentially dangerous app or reverse engineering tools installed, etc. These can easily cause these wallet platforms to target hackers who want to steal funds from your account.

In the past we have read how existing malware like Pegasus or any Trojan like iOS/Android apps are time bombs to access credentials, mnemonics, private keys or passwords. other sensitive user data that applications leave stored in their memory. .

How to secure your crypto wallets

In the section part, we want to talk about storing your crypto safely so that you can avoid cryptocurrency related scams and thefts.

1: Use a cold wallet

Many people have heard of “cold wallets” when it comes to blockchain transactions that are encrypted and plugged in but not connected to the internet, so there is little, compared to other types, the danger of a cyberattack as in the case with hot wallets.

Common types are paper wallets (as the name suggests, the private and public keys are mentioned on a paper and can be accessed using QR scans) and hardware wallets, i.e. a hardware secure acting as a repository of private keys.

2: Avoid public Wi-Fi networks

Want to keep your finances in order while trading or performing crypto transactions? Be sure to use a secure internet connection and, if possible, avoid public Wi-Fi networks. Add a VPN and you get extra security. A VPN camouflages your IP address and location so no one knows where you are. This protects you from online threats and hackers, but it can also let you do things like access region-locked content.

3: diversify investments in several portfolios

A cryptocurrency wallet is like a drawer. These are small containers that allow individuals to store their valuable cryptographic keys – the information that allows them to transact with cryptocurrency. And because the risks in crypto are so many, you shouldn’t leave your crypto wallet unprotected. Using multiple cryptocurrency wallets is a way to stay in control of your crypto life where you can balance wallets for crypto holdings and keep data breaches at bay.

4: 2FA/MFA for password security

Although easy and convenient to use, the Infosec space no longer endorses the use of text messages alone as digital security. Their inherent design flaws, including vulnerabilities such as SIM card swapping, SMS/aggregator number spoofing, and phishing attacks, make them poor options for protecting digital assets.

So if you’re considering investing in certain cryptocurrencies, you’ll want to do so through a cryptocurrency exchange that offers two-factor authentication to ensure your money is safe.

2-factor authentication (sometimes abbreviated as 2FA) is one of the most secure ways to secure your password. It is an access control mechanism that requires two different methods of identification or authentication:

the first being something you know (like a PIN code), and

· the second is something you have (like your phone, which sends an SMS to verify that it is really you).

5: Take it easy with investments

It is a good idea to keep a good mix of small and large amounts of cryptocurrency in different wallets. Don’t keep all your digital coins in one place. Protect your digital currency from potential threats such as hackers.

6: Backup Information

Loss of the private keys to your crypto account may result in permanent loss of cryptocurrency as recovery may not be possible. Therefore, it is crucial to store backup copies of the private keys of your main wallet, which prove that your account belongs to you and is necessary to regain access to it.

Crypto wallet security is difficult to tackle, with multiple weak points and areas of concern. There are two main issues: the first concerns access to local storage, where malware can easily steal your private keys. Another is the lack of authentication, which means that in some cases viruses and other malware can affect the data viewed (in addition to potential access via unsecured mobile devices). Additionally, there is a lack of input validation, which means users can inadvertently change permissions and grant functions on their devices when using crypto wallet software.

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