Cryptocurrencies were once reserved for programmers, gamers, and tech moguls. But the last ten years have seen people from all walks of life take the opportunity to invest in this alternative system. This increased popularity has made cryptocurrencies an attractive target for cybercriminals, and crypto scams are rife.
2020’s Crypto Risks
Crypto is definitely among the most secure ways of making transactions but it’s not without its own risks in the shape of crypto frauds. Scammers use sophisticated techniques to compromise crypto wallets, using anything from malware and ransomware to cleverly disguised bogus investment opportunities.
The Covid-19 pandemic has unveiled the ugliest side of crypto-related crimes. According to crypto intelligence company, CipherTrace, frauds, hacks, and thefts in the first five months of 2020 resulted in losses of nearly $1.4 billion.
Criminals target unsuspecting victims in a number of different ways, including phishing email campaigns advising people on where to buy Covid-19 treatments, PPI, and testing kits. Recipients are asked to click on a link that sends them to a hoax website where personal data is collected or payment is taken in digital coins.
Ways To Stay Protected
Being aware of the risks associated with storing and trading in cryptocurrencies is the first step towards avoiding the pitfalls. Additionally, there are some other ways you can protect and secure your crypto wallet.
Use cold storage
Cold storage allows you to store the contents of your crypto wallet offline, hiding it and your private keys from sight. Using a hot wallet for day-to-day transactions and a cold wallet for storage makes it much harder for criminals to access your investment and spreads the risk.
Use a VPN
One of the easiest ways to secure your crypto wallet is to always use a VPN when logging in to your wallet provider or exchanges. Using a VPN for improved security ensures your private key remains secured as cyber criminals can’t see your encrypted activity. Avoid using public wifi like the plague but if you have no other choice, switch on your VPN to remain secure.
Enable multi-layer authentication
Multi-signature, or MultiSig, wallets offer an extra layer to the authentication process. Users secure their accounts with at least two private keys, both of which are required to complete any transactions.
It’s also advisable to use two-factor authentication (2FA) on all crypto accounts. Once 2FA is enabled, you’ll need a one-time passcode (OTP) to access your wallet. These passwords change every 30 seconds making it impossible for hackers to break into your wallet by trying random numbers.
Subscribe to a secure email service
It’s advisable to keep crypto-related emails separate from regular emails. Secure email services such as Tutanota or ProtonMail fully encrypt messages so that prying eyes are unable to decipher their content.
Your crypto wallet is a valuable commodity and by storing and trading in cryptocurrencies, you run the risk of exposing yourself to cybercrime. Choose your exchanges carefully, keep an eye out for phishing scams, and employ these few simple tips to increase the security of your digital fortune.
