Cryptocurrency is the future and it looks set to become a key element in banking and finance. After all, it has top-notch security and is almost impossible to hack, yet thousands of people are being scammed daily.
Discover how to prevent your investments from being compromised and secure your cryptocurrency today and avoid cryptocurrency scams. Here we go over three critical risks and three solutions.
Public wifi networks
Checking your Bitcoin balance? Curious if you’ve received the money you’ve been waiting on? It might not take long to complete these tasks, but within these mere seconds, you can be robbed on an open network.
In short, if you’re on public wifi, you’re in danger. The hacker needs to just position themselves between you and the network and wait for you to log in. Once you’re logged in, he or she has your information data and can steal your cryptocurrency. Fortunately, you can avoid this situation.
The solution: Use VPN encryption
Secure your money and personal data with these essential privacy and security tools. The definition of VPNs is Virtual Private Networks, and they do as they say on the tin by shielding your activity from any snoopers. In addition, VPNs encrypt your data and make it almost impossible to steal. All you need is to turn on the app and connect to the VPN server of your choice.
Crypto phishing relies on your inattention and a range of social engineering tactics to steal your sensitive info. The most common phishing attempt when it comes to crypto theft is fraudulent emails. These emails appear to originate from your cryptocurrency provider and ask for your login info or warn you that someone tried to get into your account.
A sense of urgency is usually present, the messages warn that if you want to be safe, you need to log in to your account immediately. If you respond as the hackers intend, they can then steal your information and your cryptocurrency.
Fake websites are another consideration, they may look identical to the original but are purposefully built to steal your investments.
The solution: Use anti-phishing measures
Check every link and email address carefully. The best way is to avoid clicking on any link, rather type it into the address bar manually. Remember, no cryptocurrency provider will ask for your login information through email.
Unfortunately, it’s all too easy to fall prey to phishing attempts, particularly if you’re tired or not fully focused. For an additional layer of protection, consider using anti-phishing software to block suspicious sites and keep your sensitive data safe.
A compromised account
Whether it’s malware, you were hacked or your phone has been stolen, you stand to lose your investments if a hacker gets your private key. All it takes is one click on the pop-up and all your money is gone. But, what if you didn’t have to rely on one key alone?
The solution: Use multisig
Imagine your private key as a key to a safe. You put in a lot of trust in only one key and if your account is compromised, you could lose all your money. But you can mitigate the risk with multisig log-in processes.
Imagine having three keys:
- On your phone
- From your multisig provider
- In your safe (backup key)
Now, to use your cryptocurrency, you must use at least two keys. Yours and one from a Multisig provider. Multisig providers check your identity and location to ensure it’s you and then send an additional key. If you lose your phone, for example, a threat actor cannot access your intel because he or she has only one key.