A cryptocurrency trader lost $650,000 (roughly Rs 5 crore) in digital currency after the crypto wallet was completely wiped out in just a few seconds. This is not the first case this month. There have been several cases of crypto wallet theft.
Crypto Wallet Theft: How It Happened?
Domenic Iacovone shared his experience and asked for help from crypto experts on Twitter. He also offered $100k as a reward on behalf of assistance. Iacovone Stated that he had kept his digital assets on a crypto wallet called MetaMask. He started to get messages asking him to reset his Apple password and ID. Initially, the crypto trader did not consider the messages thinking of them to be sent by fraudsters. Later, however, he got a call from Apple Inc. Iacovone noticed that the number was related to Apple and it made him think that the call was genuine. He tweeted,
“Got a phone call from Apple, literally from Apple (on my caller ID). Called it back because I suspected fraud and it was an apple number so I believed them.”
The person on the phone said to Iacovone that his account was hacked and that they needed an OTP to verify his credentials. But, as soon as he said the 6 digit verification code, the person hung up and in seconds the account of Iacovone was wiped off of all the digital currency and NFTs that he had saved on the MetaMask wallet.
Responding to the tweet of Iacovone on his crypto wallet theft, a crypto security advisor @Serpent took awareness of the matter and shared added details about the incident, which included the screenshots of Iacovone’s phone.
As per Serpent, there is a 12-digit number which is also known as a seed phrase, which must be kept confidential in any scenario. That number is the only avenue to access any crypto wallet. Serpent further revealed that MetaMask seemingly stores the seed phrase file on iCloud which could have been how the hackers got access to the wallet of Iacovone. After that, all they required was an OTP sent on his phone.
MetaMask, even though it did not comment on the incident, but they shared a tweet warning the users about a possible phishing scam and scenarios of crypto wallet theft.
Responding to the tweet of Serpent, MetaMask shared a warning to its users about a possible phishing scam and crypto wallet theft.
Referring to the crypto wallet theft, the company also suggested disabling iCloud backups for MetaMask particularly.
Crypto Wallet Theft: How To Secure Your Crypto Wallet?
The threat to lose your crypto is mainly via crypto wallets or the exchange providers. So here are some steps that will save you from crypto wallet theft if you follow them. These will help you to reduce the chances of cryptocurrency theft. And if you are wondering how to protect your crypto on Coinbase, let us assure you, that these steps apply to all crypto exchanges and wallets.
- Try to use any cold or hardware wallets as they are not exposed to the internet, and so the chances of these wallets getting hacked are less.
- Use a secure internet connection. Try to avoid public wifi where data can be leaked easily.
- If the amount of your crypto holding is huge, then do not stuff all your cryptos in one wallet. Try to use multiple wallets.
- Secure your personal device. If you are using software wallets, then ensure that it is highly protected with several layers of protection.
By following the steps that have been stated above, you can create a shield against crypto wallet theft that is presently taking place on a huge scale.
Frequently Asked Questions On Crypto Wallet Theft
1. Can crypto wallets be hacked?
You can keep your key in a software wallet on the server of an exchange service or in a software wallet on your own mobile phone or computer, but those are exposed to remote attack if anyone on the web is able to receive your key.
2. Can stolen crypto be recovered?
If you are wondering how to recover stolen cryptocurrency, then here is the answer. While individuals have come to trust various crypto exchanges and wallets in order to conduct transactions safely if your crypto assets are lost, stolen, or hacked there is usually no chance to recover your funds.
3. How does someone steal crypto?
There is a 12-digit number which is also known as a seed phrase, which must be kept confidential in any scenario. That number is the only avenue to access any crypto wallet. If the hacker gets access to your seed phrase then they can steal all your cryptos easily.