- The safety and security of digital assets is in the news again as a man gets robbed of his crypto.
- Bitcoin self custody provider Casa, has warned about an increasing number of physical attacks on Bitcoin holders, as one of their clients almost became a victim.
- Experts tip multisig and hard wallets as safe ways of storing crypto assets.
- Crypto or Fiat? Users still prefer crypto as a safer way of keeping their money.
The value of cryptocurrencies has seen them rise in priority for criminal hits. One of the advantages of cryptocurrencies over fiats, which crypto enthusiasts have emphasized, is that of security, as it is not a physical asset that can be grabbed.
As safe as it may sound, it is still not 100% secure as it remains at risk of being stolen. It is not every day that we hear the story of someone being physically robbed of their crypto, but it’s one of the most unfortunate experiences one can have.
This was the case of a Casa user who was unfortunately targeted and catfished by his Tinder date, who ended up not being who they claimed.
A Date with a Sour Ending
Casa, a bitcoin self custody provider, shared a troubling and educational story of how a user whose account with them was almost hacked, but whose crypto on other platforms didn’t avoid the same fate.
"One of our clients was targeted on a dating app and ended up being drugged to drain his crypto accounts. This is the story of the attack and our postmortem analysis of what went wrong and what went right." The Bitcoin trader found a date, via popular dating app Tinder, who posed as a cryptocurrency trader, but ended up being a thief.
In-person, the catfisher appeared different, but he didn’t give it much thought.
On reaching his house, his drink was laced with benzodiazepine, also known as the Devil’s Breath which causes short term amnesia. He believes she asked him about his phone and passwords and went after his assets.
Storing Your Crypto Safely
There are many suggested ways to store cryptocurrencies safely, such as through the use of hardware wallets.
As opposed to hot wallets, hard wallets are not connected to the internet, which makes them more secure. Hot wallets run on Internet-enabled devices, like computers, and create private keys which, although easy to set up, provide a level of risk.
Cold wallets, otherwise known as hardware wallets, store user’s private keys on something that isn’t connected to the internet. The most secure type of hard wallet is a paper wallet, which allows the user to print public and private keys on paper.
On the Flipside
- Although more secure, the hardware can still be stolen or misplaced.
- In 2013, James Howells lost a hard drive containing over $7.5 million, or $247 million in Bitcoin by today’s exchange rates.
- Here’s a guide on how to prevent losing your crypto.
How to Set up a Hardware Wallet
A hardware wallet is secure and comes with peace of mind. To set it up, you purchase the wallet on Amazon (NASDAQ:AMZN) or another similar site.
For example, you can go with Ledger Nano S, you then connect your wallet to an internet-enabled device and follow a few instructions that vary depending on the wallet. Once this is done, you select a pin that you can easily remember.
Be sure to back up your recovery phrase in case you forget your pin. You can store the “recovery sheet” in a safe. Finally, you install the Ledger App and use the device to transfer your crypto. The device can likewise be stored in a safe.
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