There has been a recent spate of “cryptocurrency heists” in London, in which thieves threaten cryptocurrency holders with violence unless they transfer their digital coins to them. stored in mobile phone wallets or on crypto exchanges.
As detailed in The Guardian UK, City of London police reports detail how thieves have stolen thousands of dollars worth of cryptocurrency in person. One of the victims said that her phone was stolen while she was out drinking and she later realized that she had over $12,000 worth of Ether (ETH) taken from her Crypto.com account. . The victims believe the thieves saw them key in their account pin.
Another victim was approached by a group offering to sell him cocaine and, after moving to another place to buy the drug, the person was held against a wall while the gang accessed his phone and cryptocurrency account using facial verification. transferring over $7,000 worth of Ripple (XRP) to their own wallets.
This is an increasingly common variation of what is called a “wrench attack.”
As blockchain transactions are irreversible and most cryptocurrency storage methods place the responsibility for the security of the assets on the individual who owns them, Cointelegraph spoke with blockchain security firm BlockSec who shared the following tips on how to protect cryptocurrencies from assault:
“Don’t deposit a large amount of cryptocurrency into a wallet or exchange app. Just leave a small portion there. You can have a multisignature wallet and with a policy that only two signers can move the money in the wallet. By doing this, only a small amount of cryptocurrency will be lost during the raid.”
BlockSec also suggested a way to trick crooks if they mug a cryptocurrency user: Some smartphones may have different logins that can hide certain apps, such as Huawei’s PrivateSpace feature:
“The apps in the PrivateSpace are different from the main ones that are actually used. Thus, if users are attacked, they can enter the PrivateSpace showing that they do not have any cryptocurrency applications installed on their phone, or vice versa, they can hide cryptocurrency applications in this space.”
Samsung phones have a similar feature called “secure folder”, which can be used to hide all crypto apps behind a PIN or password, and the folder itself can also be hidden from the home screen.
On Apple iPhones, apps can be moved to a home screen page and hidden all at once, and there are other options like removing an individual app from showing on the home screen and can only be accessed through search.
Cointelegraph also spoke with a pseudonymous Twitter user and independent security researcher known as CIA Officer, popular for creating and sharing guides and tips on how cryptocurrency users can strengthen the security of their assets.
You’ve been asking me for a long time and finally I decided to write an ultimative thread on an advanced (and authorial, please note) cryptocurrency storage technology
Read carefully, there will be only Spy-level trips
— CIA Officer (@officer_cia) April 25, 2022
They have been asking for it for a long time and I have finally decided to write a final thread about an advanced technology (and author, please) for cryptocurrency storage. Read carefully, there will be only spy level tips
CIA Officer shared an article he wrote in April with 13 tips on cryptocurrency storage principles, saying:
“I wrote the article because my sense of fairness only pushes me forward as perhaps the biggest threat to crypto is crypto scams as people are just disappointed and gone forever.”
In the article, CIA Officer recalls that mobile wallets like MetaMask are just interfaces and recommend storing all cryptocurrency in a cold wallet like Ledger or Trezor instead of keeping it on an exchange or mobile wallet.
A physical storage device will keep all cryptocurrencies offline and assets can only be moved if someone has access to the wallet along with knowing the PIN and in some cases a password.. You can even create one using an old smartphone instead of using a dedicated device.
Cryptocurrencies stored in the cold wallet can be further strengthened in terms of security, and CIA Officer echoes BlockSec’s advice to create a multisignature wallet that uses two or even three different devices to approve a transaction.
CIA Officer also shared his rules for cryptocurrency OpSec, which is short for “operational security,” a risk management process with the goal of preventing leaks of sensitive information:
“You should build your own OpSec stone wall, so you know exactly what to do if something happens.”
In light of the hacks, those OpSec measures include keeping any cryptocurrency investments top secret. Potential thieves in public settings could overhear an argument or even witness a person’s cryptocurrency holdings, as in the previous case in which the victim was robbed.
“Being distrustful is always a good thing,” writes CIA Officer. “They can try to hack you through acquaintances, either those who claim to be acquaintances or acquaintances themselves”.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, so you should do your own research when making a decision.
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