What Can You Do If Your Wallet Gets Hacked?
Here’s what you can do when the worst-case scenario occurs.
Cryptocurrencies are a popular target for hackers because crypto transactions are pseudonymous and typically irreversible. This makes it challenging to associate stolen crypto with the real-world identity of the hacker and essentially impossible to reverse nefarious transactions.
The chances of you recovering your cryptocurrency are, therefore, close to zero if your wallet is hacked. What’s more, if you suspect your wallet has been compromised, you need to act as quickly as possible to safeguard your funds.
So, what can you do if your wallet gets hacked? In this guide, we take a look at how to know you have been hacked, what to do, and how to reduce the chances of getting hacked again.
How Do You Know You’ve Been Hacked?
Hackers prowl the Internet looking for vulnerabilities or weaknesses they can exploit. While advances in technology are helping make crypto wallets more secure, hackers typically use social engineering tactics, such as phishing scams, to get their victims to unwittingly provide them with access to their wallets.
So, how can you know that your crypto wallet has been hacked?
That’s very simple:
If you notice any transactions going out of your crypto wallet that you didn’t make, your wallet has probably been hacked.
Setting up notifications for transactions coming into or moving out of your wallet can help you catch nefarious transactions quickly.
Alternatively, a wallet hack could also lead to unsanctioned transactions on your debit or credit card if they are linked to your crypto wallet. Some hackers won’t just go after your crypto. They will go after the money on your bank account, too, if they can get their hands on it.
What Can You Do Now?
If you are positive that your wallet has been hacked, you need to act fast.
To start with, try and create a new wallet as quickly as possible and transfer all your coins there if the attacker does not already have access to them.
Alternatively, you can quickly change your login details and activate two-factor authentication, which will enable you to lock out the attacker.
However, if the hacker has already wiped your wallet clean, proceed to immediately create a new wallet and permanently delete the old one. Remember, you cannot reuse a hacked wallet as it has already been compromised.
Additionally, you can contact the police and report your stolen funds if you plan on taking legal recourse to get your money back.
Following these actions, check your devices for any malware. There are various ways that cybercriminals accomplish a bitcoin wallet hack, and crypto-stealing malware is a popular choice.
If you suspect that your wallet has been hacked, you should scan all devices you use to access your wallet and ensure that they are clear of any malicious software.
In the event that you notice any suspicious transactions or charges on your bank card or bank account (if they are in any way attached to your crypto wallet), call your bank immediately and inform them of the unauthorized transactions. Also, have them cancel your cards if they were linked to your crypto wallet.
In case you notice the attacker is trying to transfer the funds from your wallet to a crypto exchange, you can immediately report it to the relevant exchanges. Because most exchanges have a KYC process in place, a good exchange can help you identify the thief’s identity, potentially leading to their arrest.
So, how can you reduce your chances of getting hacked again?
How to Reduce the Chance of Getting Hacked Again
If you have been hacked, chances are you don’t want to go through that again. To reduce your chances of getting hacked again, you can take the following steps:
Ensure you don’t store your crypto on an exchange. Exchanges should only be used to temporarily store your crypto when you are buying or selling them.
Store your funds in a non-custodial wallet like Trust Wallet. Trust Wallet is a multi-asset crypto wallet that supports more than 40 blockchain networks and allows you to store 160,000+ digital assets.
Store your recovery phrase in a secure location offline, and don’t share it with anyone.
Use two-factor authentication where possible. Two-factor authentication can provide an extra layer of security to crypto service providers, exchanges, and wallets.
Store large amounts of crypto in a cold wallet. Cold wallets help you keep your cryptocurrency offline, which reduces the chances of hackers accessing and stealing your funds.
To prevent losing your crypto to hackers, use a secure wallet like Trust Wallet, back up your wallet recovery phrase, and stick to cybersecurity best practices to make sure your funds stay safe.