How to Retrieve Your Hacked Crypto Wallet?
Have you ever been hacked? About 30% of the OneArt community members answered ‘yes,’ pointing to the top crypto space issue. To be true, it’s a dangerous trend in the whole industry. As of July 2022, hackers stole $1.9 billion worth of crypto (+ 0.7 billion compared to July 2021), according to Chainalysis.
The major hacks and other crypto security issues roughly correspond to spikes in these topics-related searches, which is natural. For example, ‘crypto security’ queries grew in popularity after the Wormhole exploit, with $325 million stolen in February. But the #1 question is ‘how do I retrieve my stolen crypto?’ OneArt tries to find out the answer (if there is any).
The short one would be ‘by no means,’ since blockchain is immutable, and you can’t revoke a transaction once it was added to the blockchain.
However, miracles do happen sometimes, and there still is a tiny chance of getting your assets back:
- Centralized crypto exchanges may declare they return your stolen assets.
- Binance reimbursed about 83% of assets stolen from Curve Finance users.
- Bitfinex recovered most of the stolen funds in the form of BFX, but it was a long way to go.
- BitMart’s CEO promised refunds to hack victims, but the latter complained they didn’t get any.
2. You may cross your fingers and wait till the small voice of human conscience makes a hacker change his mind like in the “crypto Robin Hood” case. The thief who stole $50 million refunded the money — but only to those who needed it (the hacker reserved the right to decide who fell into this category).
These cases are more of an exception. So, the best thing to do is to learn how to keep your crypto assets safe, as security breaches account for the most of cryptocurrency value stolen in 2020 — Q1 2022.
How to secure yourself in crypto
1️⃣ Cherish your seed phrase like the apple of an eye
It may seem annoying, but we’ll say it once again: never share your seed phrase. Remember that crypto wallet providers’ support will never ask for it. If you use a non-custodial wallet, you are the only one having access to a mnemonic and responsible for its safety.
If you lose or forget and don’t backup it, you’ll lose access to your wallet and assets. Sometimes millions are at stake. Check out this story about $220 million locked in a wallet. Or this one about $184 million lost somewhere on a Newport landfill.
2️⃣ Back up your seed phrase
As a general rule of thumb, it’s recommended to store your seed phrase offline, e.g., on a cold wallet or a piece of paper. That’s what a manual backup looks like in OneArt Wallet.
But you can also use Google Drive or iCloud for backup. It’s more convenient in case you lose access to your crypto wallet passphrase and still secure. For instance, our team uses both SHA256 and RSA-4096 algorithms to secure your data to the greatest extent possible.
❗️You can copy your mnemonic to the clipboard when backing up the wallet manually. But keep in mind that it may compromise your wallet. That’s why we suggest rewriting it on a piece of paper.
Also, you can use a password manager to store your backup password.
3️⃣ Double-check everything
We mean literally everything, i.e.,
- Addresses. You can check on Etherscan if there’s any suspicious activity
- Info about projects you’re going to invest to
- Gas fees
- Links you’re going to click on, especially ads
- Emails and popups so as to make sure they’re not phishing attacks. Fraudsters are really good at imitating popular website’s names
- Airdrops and giveaways.
Be careful with files from people you don’t know — don’t open and/or download them.
4️⃣ Use 2FA if possible
Apps such as Google Authenticator will be a more secure option than SMS. If you want to go the extra mile, you may buy a hardware 2FA.
5️⃣ Don’t use public Wi-Fi
It grants hackers unfettered access to devices on the network if they are not secured.
Storing your assets in multiple places is a good idea. If one of your wallets is compromised, others will remain safe. This is especially true for centralized exchanges.
7️⃣ Set up token approval limits
Don’t give unlimited approvals so as not to let your tokens be drained. You can check your approvals here.
8️⃣ Enable auto-lock
In OneArt Wallet, you can set the timing for 5, 10, 30, and 60 minutes.
9️⃣ Take some precautions to use web extensions securely
- Uninstall extensions from unverified publishers
- Use your crypto wallet extension in a separate browser profile.
🔟 Don’t connect your wallet to websites or dApps you don’t trust
Technically, a website or dApp can’t drain your wallet until you approve a transaction or reveal your sensitive data. For example, a malicious website can offer you claim airdrop tokens and click the “approve” button. So, double-check to make sure you don’t connect to a phishing website or dApp.
But keep in mind that many web extensions store private keys on users’ file systems. It means fraudsters can potentially use some vulnerability to sign transactions on your behalf.
To sum up
Our advice? It’s better to be safe than sorry, so follow these tips to keep your wallet secure. With the OneArt app, you can be sure that it’s you who controls your private keys, data, and assets. Stay tuned for more useful hints and updates!