Cryptocurrency has become an increasingly popular form of digital asset, with many people using it to make purchases, trade and invest, or save for the future. However, as with any type of financial investment, it is important to take steps to protect your cryptocurrency from hackers who may be looking to steal your funds.
How Hackers Are Exploiting Cryptocurrency Wallets
One of the ways that hackers are targeting cryptocurrency users is by exploiting vulnerabilities in cryptocurrency wallets. Crypto wallets are used to store and manage your digital assets, and if they are not properly secured, hackers can gain access to them and steal your funds.
It is worth noting that it doesn’t matter what wallet you use, but rather how you use it. Meaning that regardless of the wallet you choose, be it OWNR Wallet, Coinbase Wallet, Exodus etc.. hackers can gain access to it if you’re not following the best practices.
Hackers are using a variety of techniques to gain access to cryptocurrency wallets, including malware attacks. Malware is a type of software that is designed to infect a computer and allow the hacker to gain control over it. In the case of cryptocurrency wallets, malware can be used to steal login information, access private keys, or even transfer funds from the wallet to the hacker’s own account.
How Crypto Malware Impacts Android vs. Apple Mobile Phones
Crypto malware can impact both Android and Apple mobile phones, but there are some key differences to consider.
On Android devices, malware is more prevalent due to the open nature of the operating system. This allows hackers to more easily distribute malware through various app stores and websites. In addition, Android devices are often targeted by attackers because they are often less secure than Apple devices, making them easier to exploit.
On the other hand, Apple’s iOS operating system is known for its tight security controls, which makes it more difficult for malware to infiltrate and infect devices. However, this does not mean that Apple devices are completely immune to malware attacks. In fact, there have been several high-profile cases of malware attacks on Apple devices, such as the XcodeGhost malware that infected a number of apps on the App Store in 2015.
It is important for users of both Android and Apple devices to take steps to protect their devices from crypto malware. This includes, using a reliable mobile wallet such as OWNR Wallet, keeping devices up to date with the latest security patches, avoiding suspicious links and downloads, using antivirus and anti-malware software (yes, these exist for mobile phones too), and in some cases using Virtual Private Networks (VPNs) to access the web.
Types of Crypto Malware
Crypto malware comes in many different forms, each using its own unique techniques to gain access to cryptocurrency wallets. Here are some common types of crypto malware that are used by hackers:
Keyloggers: These are programs that record the keys typed on a victim’s computer, allowing hackers to gain access to their private keys. Meaning that if you have OWNR Wallet or Exodus installed on your machine, the keylogger can record the login / password you type and send it back to the hacker to login to your account remotely.
Ransomware: This type of malware encrypts the victim’s files and demands payment in cryptocurrency in exchange for the decryption key.
Phishing Scams: These are scams that use fake emails or websites to trick victims into providing their private keys or login information. Reputable wallets and exchanges such as Coinbase, OWNR, Binance etc… will never ask you to give out your private key or login details.
Malicious Software Updates: Hackers can use fake software updates to install malware on a victim’s computer, allowing them to gain access to their wallet. Similarly to the above, reputable wallets will never send you an email to click a link to update the app. If your Coinbase app or OWNR Wallet needs updating, it will come through the official App Store / Google Store.
To ensure the safety of your crypto, follow the steps outlined in the next section below.
What Can You Do to Protect Your Crypto Wallet From Malware?
To protect your cryptocurrency wallet from malware attacks, it is important to follow best practices for security. Here are some tips to help keep your digital assets safe:
Use a Reliable Wallet: Ideally you would want to use a hardware wallet (as these are the most secure), but hardware wallets come with a cumbersome process of making transactions. If you move your digital assets fairly often, you can use a software wallet such as OWNR wallet.
Follow the Basics: Use strong and unique passwords for your cryptocurrency wallet.
Stay Updated: Keep your wallet software up to date with the latest security patches.
Avoid Phishing and Scam Links: Avoid clicking on suspicious links or providing personal information in response to unsolicited emails or messages. For example, if you receive an email from OWNR, Coinbase or other crypto brand that looks suspicious, check the sender email (ensure the email matches the real domain) and contact the brands support team to verify if the email is legit, in this case OWNR or Coinbase.
Protect Your Computer: Use antivirus and anti-malware software to protect your computer.
Enable 2FA: Enable two-factor authentication on your cryptocurrency wallet.
Check the Logs: Regularly monitor your wallet for any suspicious activity. Most advanced wallets such as Ledger, Exodus or OWNR will have a list of transactions (a.k.a a log of transactions) that you can review and spot any suspicious activity.
Keep Your Keys to Yourself: Avoid sharing your private keys or login information with anyone.
How to Stay Safe: Use a reputable and secure cryptocurrency wallet such as OWNR Wallet. The last thing you want is to fall victim to exchange bankruptcy like it happened to FTX. One way to avoid scam exchanges is to check their backing and reserves.
Examples of Crypto Malware Attacks
Crypto malware attacks are on the rise, with hackers using increasingly sophisticated techniques to steal cryptocurrency from victims. Here are some examples of successful crypto malware attacks:
The Mt. Gox Exchange Hack
The Mt. Gox exchange hack was a high-profile cyber attack that occurred in 2014. The Mt. Gox exchange was one of the largest cryptocurrency exchanges at the time, handling over 70% of all Bitcoin transactions. In the attack, hackers were able to gain access to the exchange’s systems and steal over $460 million worth of Bitcoin from the exchange’s customers. The attack was one of the largest in the history of cryptocurrency, and it had a significant impact on the market at the time.
The Coincheck Hack
The Coincheck hack was a cyber attack on the Coincheck cryptocurrency exchange that occurred in 2018. In the attack, hackers were able to steal over $534 million worth of NEM, a cryptocurrency that was listed on the exchange. The Coincheck exchange was later acquired by Monex Group, a Japanese financial services company.
The Cryptolocker Ransomware Attack
The Cryptolocker ransomware attack was a cyber attack that occurred in 2013. In the attack, hackers used ransomware to encrypt the victims’ files and demanded payment in Bitcoin in exchange for the decryption key. The attack was widely successful, with many victims paying the ransom to regain access to their files. The Cryptolocker ransomware was eventually shut down by law enforcement agencies, but it remains a cautionary tale for the dangers of ransomware attacks.
The WannaCry Ransomware Attack
The WannaCry ransomware attack was a global cyber attack that occurred in 2017. In the attack, hackers used ransomware to encrypt the victims’ files and demanded payment in Bitcoin in exchange for the decryption key. The attack was highly successful, with the hackers reportedly earning over $100,000 in Bitcoin from the ransom payments. The attack affected computers in over 150 countries, including hospitals, businesses, and government agencies. The WannaCry ransomware was eventually shut down by law enforcement agencies, but it remains a significant example of the dangers of ransomware attacks.
The Impact of Malware Attacks on the Cryptocurrency Market
Malware attacks on cryptocurrency wallets can have a significant impact on the overall cryptocurrency market. The theft of large amounts of cryptocurrency can affect the value of the digital asset, and result in significant losses for the victims of the attacks.
In addition, the risks associated with malware attacks on cryptocurrency wallets can discourage potential investors and users from entering the market, potentially impacting the overall growth and adoption of cryptocurrency.
Combating Crypto Malware: The Role of Law Enforcement
Law enforcement agencies around the world are working to combat the growing threat of crypto malware attacks.
In the United States, the FBI has a dedicated Cyber Division that focuses on investigating and prosecuting cases of cybercrime, including crypto malware attacks. Other agencies, such as the Department of Homeland Security, also have units focused on cybercrime investigation.
In addition to investigating individual cases of crypto malware, law enforcement agencies are also working to raise awareness about the risks of these attacks and provide guidance on how to protect against them.
For example, the FBI has published several resources on its website providing tips on how to avoid falling victim to crypto malware attacks, as well as information on how to report these incidents.
The overall efforts of law enforcement agencies play a crucial role in combating the threat of crypto malware and protecting the cryptocurrency community from these attacks.
What Crypto Wallets Should I Use to Protect My Digital Assets?
To protect yourself from hackers and malware, you can use cryptocurrency wallets that have strong security features and are less vulnerable to attacks. Some examples of such wallets include:
Hardware Wallets: These are physical devices, such as USB sticks, that are used to store and manage your cryptocurrency offline. They are considered to be the most secure type of wallet, as they are not connected to the internet and are therefore less vulnerable to malware attacks. Examples of hardware wallets include the Trezor and Ledger Nano S or X.
Desktop Wallets: These are software programs such as OWNR Wallet that are installed on your computer and used to store and manage your crypto. They offer a higher level of security than online wallets, as they are not accessible through the internet. However, they are still vulnerable to malware attacks if your computer is infected. Other examples of desktop wallets include Exodus and Electrum.
Mobile Wallets: These are apps that are installed on your smartphone and allow you to access your cryptocurrency on the go. They offer a convenient way to manage your digital assets, but they are still vulnerable to malware attacks if your phone is infected. Examples of mobile wallets include OWNR Wallet, Coinbase and Blockchain.
It is important to choose a wallet that is reputable and has a good track record of security. Additionally, you should always keep your wallet up to date with the latest security patches and use strong and unique passwords to protect your funds.
Final Thoughts on Protecting Your Crypto from Malware
It is crucial to take steps to protect your cryptocurrency wallet from malware attacks. By staying vigilant and taking proactive measures, you can keep your digital assets safe and secure. Additionally, the collective efforts of the cryptocurrency community to mitigate the risks of malware attacks and law enforcements can help ensure the growth and stability of the market as a whole.
