My Crypto Wallet Has Been Hacked - What Do I Do Now? | Wealth Recovery Solicitors

My Crypto Wallet Has Been Hacked – What Do I Do Now?

Crypto wallets being hacked are becoming a commonality in the world of cryptocurrencies. Scammers are finding ways to trick users into giving up their information that will allow them to access their crypto accounts or send crypto to the scammer’s address. Alternatively, some scammers will simply wait for their victims to expose their recovery phrase by entering it on a phishing website.

Transactions on the blockchain cannot be frozen, reversed or refunded, so if you see any suspicious transactions or activity on your crypto wallet it is likely that it has been hacked or compromised.

In our latest blog, we explore what you should do if your crypto wallet is hacked so that you can make your assets more secure for future trades.

Identify How Your Crypto Wallet Was Hacked

The first action you should take if you realise your crypto wallet was hacked is to identify how it happened. New methods are being invented every day by crypto scammers, making it more important than ever to keep your assets safe and secure. However, there are ways you can find out where the compromisation came from.

Check your history

Visiting unfamiliar websites and interacting with your crypto wallet may be the reason why your crypto wallet was hacked. Entering your information on a fake crypto wallet website or clicking an untrustworthy link are two ways that you could compromise your wallet. You must keep an eye out for any phishing websites.

Check your storage

With most crypto wallets, you will have a phrase or seed given to you that you will need to access your wallet. You need to make sure that this phrase is stored correctly. It should not be stored on a computer, in an email, on a cloud service or in a messenger app, as all of these can be compromised or easily be seen by the wrong person. It should be kept in a secure location that only you have access to.

Malware scan

While cybercriminals can still get into your wallet without using malware, it is still a common method of gaining access to your personal information. Running a malware scan through good quality antivirus software could give you an insight into how your crypto wallet was hacked.

Remote-access software

While it’s not a common method, hackers can still manage to access your personal information through remote-access software. If you feel as though this could have been the possible reason for your crypto wallet getting hacked, you should uninstall the software immediately.

Make A New Crypto Wallet

If your crypto wallet is hacked, you must discontinue it and create a new wallet. Once it’s compromised, it is compromised forever. There is no way of resetting an existing account. The remaining assets in your compromised wallet should be transferred over to the new wallet to avoid them being stolen and your new phrase should be backed up securely.

However, if a hacker has stolen ETH but left tokens in your wallet, you need to be careful. The hacker could have left a bot in place that will move any ETH that’s put in a compromised wallet to the hacker’s wallet instead.

To make sure that you create a new wallet and transfer funds safely and securely, you should read online guides or seek advice from a professional adviser who has expertise in the field.

Review Online Accounts And Passwords

Having your crypto wallet hacked could be due to compromised online accounts and passwords. Reviewing your emails, social media accounts and other online accounts should be a primary action taken if your crypto wallet is hacked. If you find that your credentials have been exposed, you should change your passwords so that they are unique across all your platforms.

Some crypto wallets allow you to enable two-step authentication to keep your account safe. Apple iPhones have a function in place on their settings that alert you to any similarities or compromises in passwords, as it gives you security recommendations to keep your accounts safe.

Learn About Security Practices

Being educated in crypto security practices is very important in the case of your crypto wallet being hacked. Even though hacking has been around for a few decades now, there are new methods constantly being created to access assets. Therefore, the more you learn, the better prepared you will be for any potential breaches.

Understanding the best security practices will help you identify how a wallet was compromised and you can then mitigate any further losses. It can also help you to implement stronger security measures on your remaining crypto holding or new wallet.

Get In Touch With Wrs If Your Crypto Wallet Is Hacked

Get in touch with our experienced team at WRS if you believe you have had your crypto wallet hacked, or have any questions about other crypto scams.

We’re passionate about providing the best in legal care and advice when it comes to recovering wealth that has been lost to trading scams, including with Forex, CFDs and cryptocurrency.

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