How to avoid crypto wallet hacks

Earlier this year, we shared some of the most common scams in the crypto space and our tips to avoid them to help protect your crypto.

But even if you have your smarts about scams, your assets can still be at risk through hacking. You may know well enough not to hand over your personal information to scammers, but without proper security measures in place, your crypto wallet can become vulnerable to malicious hackers.

So to help keep your crypto safe, here are a few tips to help prevent your wallet from being hacked.

Use Two-Factor Authentication (2FA)

Two-Factor Authentication (2FA) is a great way to add extra security to your wallet account when logging in. As well as entering a password, you’re also given a code or password identification number (PIN) sent via email or SMS to access your account.

However, this isn’t recommended if someone can access your email or store your number on another device. Luckily, there are other ways to incorporate 2FA without having to worry about this risk.

For example, the CL Platform requires users to set up 2FA via Google Authenticator — a mobile security application based on 2FA and time-based one-time passwords (TOTP). After installing the app, the user sets it up for each account they want to use it for. The authenticator app then generates a secret key to be used for all future logins for those specific accounts.

Authenticator apps such as Google, are beneficial in that they make it harder for hackers to access your account, as the app code expires in less than a second — giving them a very short amount of time to breach your account.

Avoid public WiFi

The beauty of today’s technology is that you can work from anywhere with an internet connection. Your office could be your local coffee shop, library, or even the middle of the beach so long as you have access.

While this is convenient, the main risk comes from public WiFi. Compared to private networks, public WiFi doesn’t provide the same level of security and can make your wallet account vulnerable to attacks by accessing computers connected to the network.
The most common risks of using public WiFi are:

• Man-in-the-middle attacks — A cyberattack where the attacker secretly positions themselves in a conversation between a user and conversation — either to eavesdrop on or impersonate one of the parties — in an attempt to steal personal information such as passwords and account details.
• Malware — A type of software specifically designed to disrupt, damage, or gain unauthorised access to the victim’s computer. Due to the lack of security with public WiFi, its connection may be compromised by a hacker — allowing them to download harmful software to your computer.
• Wireless Sniffing — A hacker eavesdrops on communications within a wireless network by using special software or hardware tools. With public WiFi, the victim’s device transmits a data packet through an unencrypted network, which is then accessed and read by the hacker through these tools. From there, they can scan this information for important information, such as login credentials.

Be careful with what you download

Sure, you can spot a bogus phishing text from a mile off, but you should also be wary of what you download from the internet in general. It’s important to be cautious of the files you download, not just from your email or SMS.

In some cases, hackers have used platforms like Telegram, Reddit or Facebook to upload malicious files in an attempt to lure victims in to download them. Always make sure to take caution with these types of messages.

Never share your private keys online

They’re not called private keys for the sake of it. If you’re using a wallet online (AKA a “hot wallet”), it’s important to keep your private keys offline, such as on an external hard drive, or kept as a hard copy, such as a notebook.

Storing your private keys online is very risky, as there’s always the risk of exposure to hackers, so keeping a physical copy for your eyes only is the safest way to go.

Reset your password regularly

As inconvenient as it may be, it’s good practice to change your password regularly to avoid getting hacked. Unfortunately, with how clever hackers are becoming, even some of the most complex passwords can be breached.

So for extra protection, make sure to set up a long password (with plenty of characters), store it safely, and change it often. You should also avoid reusing the same password or including any personal information.

Overall, protecting your crypto wallet from hacks is crucial to safeguarding your digital assets. While being aware of common scams in the crypto space, implementing robust security measures is equally essential.