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Hacking and how to protect yourself

In the crypto space during 2021, one of the biggest problems has been cyberattacks by scammers and hackers. From exchanges to users’ wallets and crypto projects, over the course of the year there seems to be a news headline every other week on how these exchanges and crypto users are losing hundreds of millions of dollars’ worth of digital assets to malicious hackers. AscendEx, BitMart, BadgerDAO, MonoX Finance, Cream Finance, Liquid and PolyNetwork are a few exchanges that have fallen victim to these cyberattacks, losing a whopping combined total of around $1.2 billion to these hackers this year alone. In the whole crypto space, it is estimated that over $10 billion was stolen in DeFi related theft this year. So how is this happening?

Telegram and YouTube are a few of the ways in which hackers are getting into crypto users’ wallets and stealing funds. One of the methods of these scammers is to create a fake profile of a YouTube influencers account and under their videos they will reply to comments claiming that you have won a giveaway and that you must give your wallet details to claim the reward. They will then use these details to drain your wallet and steal your digital assets.

On Telegram, scammers will create fake admin accounts and hide in crypto community groups. When people in these communities ask questions, these fake admin accounts will private message these people pretending to be the admin of the group with solutions to the questions asked. They will state how they need your details to check the problem and then use this information to get into your wallet steal your hard-earned funds.

A rug pull, is another malicious act which is unfortunately all too common in the crypto space. With a rug pull, developers abandon a crypto project and take off with most, if not all the project’s funds. Or they sell off their pre-mined tokens. This drains all the investor’s funds and leaves them with huge losses that cannot be recovered.

So how can you protect yourself?

One of the best ways to protect yourself in the crypto space from hacks and scams, is to ensure that you always do thorough research before investing in a certain project. Read the white-papers, research the team behind the project, investigate their website and social media pages. This can give you a greater understanding of the legitimacy of a project which can protect you from investing in something sketchy that could potentially be rug-pulled, and result in you losing large sums of money.

Another important way to protect yourself is to always keep your private seed phrase in a safe location and NEVER give it out to anyone asking. Your private key is a series of words which is a password to accessing your wallet. The moment a hacker gets hold of this, then your wallet will be at huge risk. It is best to keep this seed somewhere offline and make multiple copies of it to ensure that you are always protected. You should never enter this phrase after following a link or any unofficial websites as they are often scams and are trying to gain access to your wallet.

All legitimate crypto project’s will never ask for your private keys and their Telegram admins will never message you first. If you ever find yourself in one of these situations, delete the website and block the fake accounts messaging you to ensure that you keep yourself as protected as possible and do not lose any money. Simply Crypto Hub offer cyber security services ensuring that our security is top level to keep all our users safe and establish a secure network that everyone can enjoy and gain from