How to Protect Your Cryptocurrency from Phishing Attacks?

There was a time when I felt relieved after locking up my crypto wallet with my birthdate as a password. Heck, I didn’t use cold wallets back then too, until one day, one of my friend’s account got hacked, and he lost almost $50,000 worth of Bitcoins. We learned one lesson that day – crypto security isn’t just about using a strong password or storing our crypto inside a cold wallet anymore. It’s about being safe, putting up a good phishing attack defense, and practicing proper crypto fraud prevention techniques. However, before I talk about how to protect yourself, it’s important to know about what you’re up against.  

Let’s address that first. 

So, What are Phishing Attacks? 

Have you ever got a text on your phone claiming you have won an iPhone or an iPad? And now, all you need to do is write your credentials, such as name, address, and bank account number, so that they can send you the reward. Sounds too good to be true, doesn’t it?  

That’s what phishing scams do. They either feast on our FOMO (fear of missing out) tendencies or share a fake security alert (like, your gmail account’s password has been reset, click here to change it).  

And once you click on the provided link and put in your credentials, they get access to your bank account, security details, and whatnot. 

The problem is, it’s almost difficult to even understand that you’re being lured by a phishing email. The message looks very well-written and clear, and the website looks identical to how the official URL should look like. However, there are some methods you can use to check if the website is fake or not. But before I share that, let me tell you about some common phishing tactics you should be aware of –  

• Fake websites or platforms of exchanges or crypto wallets that you’re using  

• Impersonating as MetaMask or Binance to “warn” you about a security breach  

• Sending a QR code, which “promises” you to help recover your lost funds 

Crypto wallet security isn’t just about keeping your coins safe – it’s also about knowing who you can trust. Let’s learn more about it. 

The Basics of Crypto Fraud Prevention Techniques 

If your crypto wallet was your house, how secure would it be? Would you put a wooden door at the front and back protected by rusty locks? This is what your crypto wallet with a simple password (your phone number or birthdate) looks like to hackers. And you can bet on your home that they will slip right through your security, either by exploiting the outdated software, weak passcodes, or small, unnoticed mistakes. 

The very first step in crypto fraud prevention is to create a password that’s long and unpredictable. Using a password manager to create it is usually the right path to take, but if you want to go DIY – it’s even better. A good example of a strong passcode could be “7H!$-!$-N0T-@-G00D-P@$$,” as it showcases a combination of special characters, numbers, and capital and small letters.  

Also, it’s important to integrate 2FA into every account you’ve created to work on your crypto shenanigans. It’ll send you an OTP every time you try to access your account – and, if you can’t put in the right numbers, your accounts will be locked. These codes keep on changing every 20 to 30 seconds, so as long as the hacker is not stealing your phone, they can’t get access to your account as well. 

I’d also suggest you go through reviews of the exchange and their in-built wallets and choose something that has an excellent integrated security system. And you have to keep on updating it as soon as the developers release it – toggle on ‘automatic updates’ if you are way too busy in your life. 

Phishing Attack Defense Techniques 

Differentiating between a website designed for a phishing attack and the original URL is almost like playing the ‘spotting the difference’ game. Here are some signs that you can look for to win the game – 

• Before you click on a website, always verify it first. So, you have to check the mail address and recheck it with the original URL to see if there’s any difference between those two or not. If you can’t trust the link provided in the mail, write down the URL of your wallet’s website (or whatever tool you’re using) manually. 

• Most phishing emails usually have some sort of spelling mistakes and weird usage of grammar – which is quite unusual in mails sent by a big company. Also, if someone asks for seed phrases and private keys through an email, it’s a scam. No matter how much danger your account is in, the wallet provider will not ask for any personal data, not even for verification purposes. 

• If a message feels too urgent and repeatedly requests you to perform an action, make sure that you’re not opening the mail, or the links provided in it. 

Choosing between Different Wallets 

So, let’s talk about the wallets.  

There are three types of options you can choose from – hardware wallets, software wallets, and paper wallets. When it comes to storing their cryptocurrencies, most people usually choose software wallets, as they are easier to trade with due to being always connected online. However, this makes them much more prone to cryptocurrency attacks as well, as anyone can brute force into your account and steal your coins from it.  

Hardware wallets, on the other hand, are much more difficult to break into, as they are not connected to the internet and require your physical information to get unlocked. Nevertheless, as these are not online, it takes quite a lot of time to take out your money from here. 

Finally, a paper wallet is a type of physical document, which contains a private key and a public key for performing crypto transactions. There is a key generator tool available in the wallet, which can be used to create the keys. However, like hardware wallets, these cannot be connected to the internet – which makes them extra secure. And only you can access them through biometrics. So, as long as you are not losing your device as well as your fingers, no one can get access to your account. 

The Bottom Line 

There was a time when crypto security techniques were just a nice-to-know of our lives. However, considering how advanced hackers have become, it’s become difficult to protect what is yours. So, it’s important to stay sharp, skeptical, and make sure that you are double-checking everything before clicking on it.