Mark Cuban infamously lost nearly $900,000 in a crypto scam, and in 2022, net losses from crypto hacks hit $3.7 billion. Although the figure dropped by more than half in 2023 ($1.8 billion), crypto hacks and scams remain a major challenge. Investors, traders, and general crypto users must identify the best preventative measures to protect their assets from hackers and scammers. Below are some tips to help you navigate the risk of crypto hacks:
Start with a Strong Password
The importance of a strong password cannot be overstated. Whether you use your cryptocurrency to explore casino games or to shop from online stores, you need a strong password to protect you from hackers. Create passwords with at least 12 characters featuring a mix of numbers, uppercase and lowercase letters, and special characters. Avoid easy-to-guess passwords containing your name, date of birth, city, favorite shows, and sports teams. More importantly, change your password from time to time just in case someone else is making headway in guessing your current combination.
Enable Two Factor Authentication
There’s a reason the best online casinos and stores implement two-factor authentication. Casino operators know hackers can attempt to gain unauthorized entry using robust software that can crack user passwords. To counter this, they offer two-factor authorization that prompts you to enter a code from your phone. This two-layer verification can help to keep unauthorized attempts at bay. It is also available on crypto accounts, email, and almost every online service. You can activate it across all services to secure your digital and cryptocurrency accounts.
Use Reputable Exchanges and Wallets
With cryptocurrencies becoming mainstream, many exchanges and wallets have sprung up to meet the new demand. However, not all are credible, reliable, or secure. Their systems are created by different programmers and cryptographers, which results in varying security features and customer protection. Research before signing up to avoid risking your money and assets on unsecure platforms. Stick to reputable cryptocurrency exchanges and wallets with a proven track record. Look for platforms with a positive reputation for their high-security standards. Review the security features and additional layers of protection available for traders and investors.
Keep Your Private Keys Private
Private keys are everything when it comes to crypto security. These special keys are required to unlock your cryptocurrency, like the password to your bank account or online payment service. Sharing your private keys with someone else is not recommended, even if they’re your relative or trusted friend. The keys can be used to access your cryptocurrencies and facilitate irreversible transactions or trades. Unless you have a shared crypto account where multiple partners can access the funds, it’s advisable not to share private keys. In cases that demand sharing, make sure everyone knows the risk and preventative measures required.
Secure Other Digital Assets
In the modern digital world, hackers can use several backdoors to access your computer and mobile phone. Your social media platforms, the digital media you download, and the email links you click are all potential threats. Hackers can use phishing emails that lead to counterfeit websites that look just like the original. Beware of promotional deals and emails from unknown contacts. Verify the sender before opening the mail or invest in email security solutions. Protect your social media using passwords and 2FA, and separate your sensitive crypto details from other information you use for social purposes.
Maintain an Updated Software
Software updates happen more frequently than ever before. Thanks to modern technologies, software upgrades have been accelerated and no longer take months. Developers can update their software daily with new security patches and layers. The updates are added to the server and immediately available for download or automatic installation. It’s important to accept automatic updates from your crypto exchanges and wallets. This will ensure security patches are installed automatically, leaving no room for hackers to exploit. Remember to update your antivirus software and other digital applications you use.
Keep an Eye Out for Scams
Anyone can fall victim to a cryptocurrency scam, including tech billionaire Mark Cuban, who lost nearly $900,000. The loss came after he downloaded a fraudulent version of MetaMask, a popular app for managing cryptocurrencies. MetaMask is one of many apps with fraudulent versions. Hackers have counterfeit crypto exchanges, wallets, websites, trading platforms, support pages, and more. With such a robust web ready to trap unsuspecting users, you should be vigilant and ready to react. Review every website, app, and service before investing or entering your credentials. Watch out for pump-and-dump schemes where scammers inflate the crypto value to sell and quit the market, causing dramatic drops and heavy losses for investors.
Key Takeaways on Mitigating Crypto Hacks
Cryptocurrencies have permeated our lives and are poised to be the new mode of payment. Punters, online customers, investors, and retailers already use Bitcoin, Litecoin, Tether, Ethereum, and other stablecoins. Combating the threat of hackers and scammers requires a comprehensive approach that seals all vulnerabilities. Strong passwords, 2FA, antivirus software, and persistent screening are what it will take to avoid falling victim to scammers and hackers. You should aim to secure your digital footprint beyond crypto exchanges. Keep all your connections secure and stick to reputable platforms and services.
