An inexperienced user simply needs to press the wrong button to lose all their funds. To prevent this from happening, you need to know all the basic ways to deceive you. In this article, we will get acquainted with the most common ways to steal cryptocurrency.

Forewarned is forearmed!

With the development of digital technologies, new, innovative ways of fraud come into our lives. In order to protect yourself from the loss of funds, you must, firstly, follow the basic security rules that we talked about in one and the previous articles. Secondly, you need to be aware of the ways scammers will try to steal your money. Forewarned is forearmed!

Types and ways to deceive you: caution is paramount

Despite the fact that cryptocurrencies and digital assets are well protected thanks to the blockchain, sophisticated scammers have come up with many ways to steal money from you. Often, hackers try to steal funds from you through malware and break into wallets.

I would divide all types of fraud into 2 types: deception within the network and virus hacking of your device. The first type can be described as deceiving the user directly while using wallets or exchanges on the Internet. Often it is associated with the carelessness of the user. In this article I will talk about: fake wallets, phishing emails, authentication bypass.

The second type is everything that is connected with the ingress of various viruses on the device with the ensuing consequences. This type may include: wallet hacks, keyloggers, smart viruses.

The system of deception and its device

To begin with, let’s figure out how it is generally possible to steal funds in the digital space? The only way to pull off such a theft is to get your wallet with crypto funds. In the real world, your wallet can be physically taken from you. In the world of cryptocurrencies, the main task of a scammer is to get a private key from your wallet. Each wallet has its own key-password that cannot be shown to anyone. Hackers will try in many ways to get it. Your task is to make sure that no one can ever see this secret key.

Of course, there are also viruses that will force you to personally send your funds to the scammer’s address! To do this, scammers manage to come up with complex schemes, programs that test you for attentiveness, but more on that later.

Fake Wallets

Let’s start with three popular options for cheating on the Internet. And the first of them is the so-called fake wallets. There are many popular hot crypto wallets that are used by millions of people. 

To use such wallets, they need to be downloaded from the Google apps platform. It would seem that everything is simple, and at this stage our funds are still safe. But, as practice has shown, this is not so!

There are fake apps that masquerade as the most popular wallets, accurately copy their design and functionality, as well as the download location (those same Google apps). As soon as you download such an application, create your wallet and send money to it, they will immediately leave as a scammer. And your wallet was never actually created.

To avoid such deception, you need to download wallets from the official websites of companies and double-check the correctness of their name and domain.

Phishing emails

Phishing emails are a common scam. The essence of the deception is that the scammer sends you a letter on behalf of the administration of the exchange or wallet. “Notifies you that you are experiencing problems or your wallet and funds have been compromised.” To correct the situation, you need to send your accesses and passwords to this “administration”. After that, you will never see your funds again.

This “divorce” is very reminiscent of the classic and sensational in Russia “Sberbank support service”. When a bank employee allegedly calls you and asks you for a secret CVV2 code from a card or transfer money to a specified account.

Remember that no employee of a bank, crypto exchange or wallet will ever ask you for your individual secret passwords and keys. Never give confidential information to anyone, then everything will be in order with your funds.

Bypass 2FA

Two-factor authentication (or 2FA) is an additional security method offered by almost all exchanges and crypto sites. 2FA allows you to generate a digital code that changes every 30 seconds. It is usually used when logging into an account, as an additional measure of protection and confirmation that it is really you. I talked more about 2FA in one of my previous articles about the security of crypto wallets.

However, even this protection option has flaws, and there have been precedents for hacking 2FA by scammers. This method is extremely uncommon, however, I consider it important to mention 2FA, that even this can happen. Be careful and follow all the notifications that come to you from the mail or phone!

Ways to deceive you: viruses and storing passwords on your computer

Hackers as a form of deception Photo: Mika Baumeister / Unspalsh.comHackers as a form of deception Photo: Mika Baumeister / Unspalsh.com

 

Now let’s look at the different options and consequences of getting a virus program on your computer.

This method of hacking your wallet is the most banal and common option, especially for inexperienced users. It consists in the fact that a hacker using a virus program that you could pick up on some unsecured site on the Internet gets into your computer and can read all your files.

As a rule, inexperienced users store all their passwords and accesses, including those from a crypto wallet, simply on a computer that is connected to the network and has a chance to “get sick” with a virus. If this happens, hackers find your password files, enter your wallet and simply withdraw all the money. That is why you should never store such confidential information on a device that is connected to the Internet.

Smart viruses that replace copied wallets

There are many different ways to cheat. Now let’s talk about malicious virus programs, because they are also different. For example, there is a virus that, if it enters your computer, will not crack any wallet. It will force you to personally send funds to the scammer’s wallet. But how is this possible?

Everything is very simple. The virus program that enters your computer automatically recognizes the wallet address you copied and replaces it with the address of the scammer! Thus, if you want to send funds from your wallet to your friend’s wallet, you copy it, paste it into the sending address field, select the amount, confirm the transaction and wait happily for the funds to fall into your friend’s account. But this will not happen, because you will copy the friend’s wallet, and paste the scammer’s address into the “sending” line in the wallet.

Therefore, it is extremely important to double-check the recipient’s address 10 times before sending. Nothing else will help you here, except your attentiveness.

Keyloggers

Malware that accidentally gets on your computer can be different. One of the most popular scammers are the so-called keyloggers. This is such a virus program that, when it enters your computer, remembers any data that you enter on any site as a login and password.

Remember that there are many ways to pick up malware (of any type we’ve covered today):

  • Through email messages;
  • By connecting a USB device to your computer;
  • On dubious sites on the Internet;
  • Through public Wi-Fi.

Always be aware of these methods and be wary of unfamiliar flash drives, strange emails. And check your computer with antivirus more often.

Ways to deceive you are built on inattention

Today we have seen that scammers are constantly creating different ways to deceive you and steal your funds. Many of the hacker scams are just trying to catch you inattentive. And most of it is due to the fact that you are using your computer incorrectly. Therefore, viruses can get on it.

The main idea: be extremely careful, accurate and constantly learn about new cunning ways of fraud, because forewarned is forearmed!