Hacking is still one of the most popular Bitcoin stealing methods today. It accounts for a significant number of the total theft cases reported annually. Perhaps you’re wondering why this happens, despite the blockchain being the safest platform ever built. Well, it’s critical to note that most hacking incidences don’t occur on the main blockchain itself.
Instead, hackers target users who don’t know how to keep their wallets safe against such attacks. We would never report hacking cases if everyone knew how to protect their wallets and the associated electronic devices. We’ve explained below some of the most common techniques hackers use to access digital wallets.
SIM Card Swapping
SIM swapping is among the riskiest Bitcoin wallet hacking methods. That’s because you can hardly notice it has happened. If you don’t use your digital wallet regularly, it can take weeks or months to realize something is wrong. The technique hackers use in this case exploits the weaknesses of the 2 Factor Authentication verification technology.
Usually, they swap the target’s SIM card and then use it to obtain their wallet verification codes. Once this has happened, the perpetrators use the sent codes to access user Bitcoin wallets illegally and immediately transfer all the funds to a different address. Remember, all Bitcoin transactions are irreversible. So, you can imagine how much damage SIM card swapping can cause.
You need to think twice if you thought SIM card swapping was the most brilliant hacking method. Phishing tricks users into sharing their wallet login credentials willingly. Afterward, the hackers use the details to access their Bitcoin wallets and legitimately move the cash elsewhere.
Hacking by phishing is complicated to avoid unless you’re brilliant and keen. That’s because of the way the criminals execute the process. First, they identify a suitable platform and then clone it. Hackers choose domain names almost the same as genuine ones to confuse users even more.
So the fake website also appears in the results when a user searches the target Bitcoin exchange or related platform. The cloned website will record and send your username and password to the criminals. Ultimately, the hackers use the details to log into your wallets and get away with all the Bitcoins.
If you’re already an investor or planning to start trade with Immediate Edge platform, it’s essential to master some key safety tips. For instance, you should keep all your login credentials private. Also, ensure you use only trustworthy digital wallet providers for maximum security. And this could bring peace of mind and lead to your investment prosperity.
Issuing Compromised Hardware Wallets
Anybody already using a cold Bitcoin storage device is highly susceptible to this type of hacking. Hackers will approach you, claiming to be your wallet service provider. In many cases, they’ll warn that your hardware wallet is failing and requires immediate replacement. Next, they’ll ship a new one to you and give instructions regarding what to do to correct the mess.
Usually, the user guide will direct you to connect the newly delivered hardware wallet to your PC and enter your account’s recovery key. Unfortunately, that’s how you shall have sent your wallet’s crucial information to the hackers. Please note that your service provider will never request your recovery code. Also, they can deliver a replacement only if you ask for it.
The Bottom Line
Bitcoin wallet hacking is real and accounts for most of the theft cases reported annually. The hackers have consistently improved their ways with time. As a result, it isn’t easy to detect their activities unless you know the popular methods they use.
It’s also essential to master how to keep your Bitcoins safe. The methods by which a hacker can access your Bitcoin wallet include; phishing, use of compromised hardware, intercepting 2FA verification messages, and use of malware, among others.