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5 Ways to Protect Your Cryptocurrency From Fraud & Hacking

Safeguarding Your Cryptocurrency and Other Digital Assets

In the past two years, the price of cryptocurrency has skyrocketed, reaching historic highs in late 2021 before cooling slightly earlier this year. The meteoric rise of the crypto industry has attracted investors from across the globe and bad actors hoping to defraud crypto holders out of millions.

At Meyer Wilson, we represent investors who have been victimized by fraud or misconduct. Our experienced investment fraud attorneys have recovered over $350 million on behalf of aggrieved investors nationwide since 1999. If you are a crypto investor and have been defrauded or hacked, contact our office at (614) 532-4576 for a free case evaluation.

Keeping Your Cryptocurrency Secure

Cryptocurrency holders must remain vigilant to protect their assets from hackers and other forms of cyberattacks. People with large amounts of crypto have become the targets of hackers and other cybercriminals. Crypto investors who have suffered losses are encouraged to contact an investment fraud lawyer to determine their legal options.

Consider these 5 tips to protect your crypto assets:

  1. Be Skeptical

Always be skeptical about things that seem too good to be true. Do your research before investing and avoid schemes that promise huge returns on investment that have not been properly vetted.

Do not click on advertisements, unknown links, or respond to spam-like text messages. Hackers today are extremely sophisticated. Phishing scamsare becoming harder to discern.

One false click can install malware or, worse yet, unknowingly give a third-party access to your device. Never give out your login credentials, passwords, or other personal information.

  1. Add Additional Security Measures

Require a PIN or passcode to open your device and add other security measures for any logins. You should not be relying purely on SMS or text authentication. Multi-factor authentication (MFA) is preferred, which makes you enter more than one credential.

SIM Card Swap Scams are on the rise and have devastating consequences. Adding security measures to your device can help prevent these fraudulent schemes. If you are suddenly unable to make phone calls or send text messages from your mobile phone, contact your cellular provider immediately.

  1. Look for Suspicious Activity

Follow all of your transactions closely. If anything looks suspicious, investigate and report it as soon as possible. There are tools that can help you monitor your accounts for fraud, but you can also set up notifications when any changes are made within your wallet.

Even with monitoring tools set up, you should still routinely scan your wallet for unauthorized transactions. Protecting your cryptocurrency requires vigilance on multiple fronts. Hackers will seek vulnerabilities on your mobile device and your computer, as well as potential weaknesses in the exchanges that you use.

  1. Use Multiple Wallets

Just as you would want to diversify your portfolio, you want to diversify where you keep your wallets. Using multiple wallets can help ensure that if one is hacked, you do not suffer a complete loss.

Large amounts of cryptocurrency should not be stored in an exchange. Exchanges should be limited to funds that you plan to trade, while the bulk of your assets should be stored in a secured “cold wallet.”

Cold wallets, also referred to as hardware wallets, are private and not connected to the internet. They are less vulnerable to the types of attacks that typically afflict crypto holders. Cold wallets can help mitigate your losses.

  1. Change Your Password

It may seem obvious, but you should be changing your password regularly. Passwords should not be the same across your devices or apps.

Your passwords should not contain things that are easily found on social media sites, such as your birthdate, pet name, or anniversary. You can use a password generator or select a mix of numbers, letters, and special characters to make it more difficult for hackers to access your account.

Protecting Your Assets Now and in the Future

While cryptocurrency itself is highly secure, the personal devices, wallets, and exchanges used to trade or store digital assets are not. Cryptocurrency remains largely unregulated, which means that individual investors must take steps to secure their assets.

If you maintain an extensive crypto portfolio, you need to take a broad look at your devices to ensure that they are adequately secured. Contact your mobile carrier to ensure that they are taking steps to prevent data and security breaches.

Stay abreast of the latest scams that are affecting crypto holders, such as SIM Card Swapping. Hackers are savvier and more able to escape detection than in previous years. Doing your due diligence can help safeguard your investments and prevent catastrophic financial loss.

Recovering Losses After a Cryptocurrency Hack

In the event that you suffer losses as a result of a cryptocurrency hack or security breach, our investment fraud lawyers might be able to help.

Contact Meyer Wilson at (866) 827-6537 for a free, no-obligation consultation. Our nationally-recognized legal team can help determine whether you have a valid claim for damages.

The information contained in The Firm’s posts on its blog, fraud alerts, investigations or elsewhere on the site is based upon information obtained from other sources including, but not limited to, news outlets and federal, state, and regulatory agency filings. All suspects and subjects of postings herein are presumed innocent until proven guilty in a court of law or administrative action and any and all crimes are alleged until a court or regulatory agency finds otherwise .

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