Cryptocurrency is changing the way the world thinks and see money, offering a decentralised. borderless payment system with greater autonomy and privacy. But with such leaps forward comes some serious responsibility, especially when it comes to keeping your crypto assets safe from all the threats out there.
A compromised wallet can be a complete nightmare for the wallet holder, and unfortunately it is a growing concern for people in the crypto space and is happening more and more every day.
Whether you fall victim to a phishing scam, malware or simply poor security practises, knowing how to act after you realise your wallet is compromised can make all the difference when it comes to protecting your assets.
In todays blog we are going to detail the steps you need to take to act quickly and effectively if your crypto wallet has been hacked or compromised in any way.
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Keep calm, but act fast.
The most important thing to do when you realise that your crypto wallet has been compromised is not to panic. We understand that this is an incredibly stressful situation, but remaining as clam as possible and level headed will help you act quicker and more effectively.
The sooner you act the better chance you have of minimising any damages and losses to your assets.
Disconnect from the internet.
If you suspect your crypto wallet has fallen victim to a malware attack, or unauthorised access on your device (computer or smartphone) your first step should be to disconnect it from the internet as soon as possible.
This can prevent further transactions from being completed or further information from being stolen. You should not attempt to access the wallet or account from that device until you have scanned for viruses and confirmed that the cause of the breach has been found and fixed, otherwise you could have the same thing happen again as soon as you restore the internet connection.
Use a different, clean device to proceed with the following steps while you run a full virus scan on the effected device.
Protect all remaining assets.
If you have managed to gain access to your wallet on a different device and some are your funds are still in the wallet, you should move them to a different wallet straight away. Ensure that the new wallet you are sending your funds to is located on a different device from the original, infected device, one that you are confident of being clean and secure.
If you are using a hardware wallet, we recommend resetting the wallet completely, wiping it clean and generating a new seed phase.
Make sure you NEVER reuse the same seed phase, even if you are confident that any hacker or scammer hasn’t been able to access the seed phase.
Removing authorised permissions.
If your wallet has been compromised from connecting it to a fraudulent dApp (decentralised application), you will need to revoke all token allowances. These permissions can allow smart contracts to move your tokens to another wallet without further approval from the user.
Just because your tokens are still in your wallet, doesn’t mean that they completely safe. A trade or transfer could be set to execute in a number of hours/days to catch people unaware.
There are tools that can help you do this, these are as follows;
– Etherscan Token Approval Checker
– Revoke.cash
Both of these services will allow you to disconnect and remove access rights from your wallet, cancelling potentially harmful smart contracts that may be connected to your wallet.
Notify exchanges and DeFi platforms.
If your wallet was connected to any centralised exchanges or DeFi platforms, reach out to their support teams straight away. While they will not be able to return any funds that have already been taken, they may be able to freeze your wallet and flag any suspicious withdrawals.
When contacting the support teams, make sure you have your wallet address, transaction history and any identification they are likely to require to help speed up the process. The more time passes, the more ast risk your assets are.
Review your security.
It can be heart-breaking to lose assets due to a hack or a scam, but remember that it has happened to the most seasoned crypto investor. If this ever happens it can help serve as a reminder of what is out there and help you review and upgrade your security on all of your crypto accounts.
Ensure that your wallets seed phases are all backed up in a safe place. NEVER share your seed phase with anyone. No exchange, centralised or decentralised will ever ask your for your seed phase.
Do your own research before connecting your wallet to any website. Use social media platforms to look for previous users experience with any website you are considering trading or investing on.
Make sure all your accounts are setup with two factor authentication where possible. This adds a second layer of security to your wallet, should someone manage to gain access in the future. This could potentially alert you to a breach before any funds have been moved.
Consider asking for help.
Not all of us are great with computers and that is okay. It is okay to ask for help, if you feel you need it. There are plenty of well reviewed, reputable cyber security specialists who you can contact for help securing your computer.
Be cautious when reaching out to any cyber security company, always checking for reviews from previous customers. A good cyber security specialist isn’t going to be “cheap”. If you find someone who is considerably cheaper than everyone else, there is usually a reason for it. They are either not very good at their job, or even worse they could be one of the very scammers you are trying to avoid.
Crypto Analyst’s Final Thoughts.
Having your crypto wallet compromised can be devastating, but you are not alone in it. While recovery might not always be possible, damage control certainly is.
The decentralised nature of cryptocurrency means that users have a lot more freedom, but with that comes extra responsibility to protect yourself, as there is not a “bank” or other traditional institution there to protect you. By keeping a level head, acting quickly and using the right tools you can build a solid foundation to move around safely and securely in the crypto space.
Remember, when it comes to cryptocurrency, you are the bank. Protect your bank at all costs.