Willie Sutton, the criminal who became legendary for stealing from banks during a forty year career, was once asked, “Why do you keep robbing banks?” His answer? “Because that’s where the money is.” Nowadays, there is a better target for robbers than banks, which are typically well-defended against theft… cryptocurrency wallets.
Trezor, the manufacturers of one of the world’s leading hardware wallets that promises to store securely the private keys of cryptocurrency investors, has warned its users to be wary of SMS text messages that claim it has suffered a security breach. Some Trezor users report receiving SMS messages that warn them of potential losses of cryptocurrency. Trezor advises that it never contacts its users via SMS. Should you click on the link? Of course not.
If you were to panic and did recklessly click, you would be taken to a website that shares more details of the alleged breach. Here, the page asks for some very sensitive information: the secret recovery phrase for the Trezor hardware wallet. Trezor says it has seen no evidence that its systems have been compromised, or that criminals have accessed its database of customers in order to send the SMS messages.
Cybercriminals are hell bent on breaking into hardware wallets, typically used by those who have the biggest cryptocurrency fortunes to lose. Last year, for instance, I described how cybercriminals targeted owners of Trezor hardware wallets with emails that also claimed there had been a security breach, in an attempt to scare victims into installing a bogus firmware update onto their devices.
In order to protect oneself from cryptocurrency theft, it is important to be aware of the risks associated with hardware wallets, and take steps to protect yourself from potential scams. Keep your hardware wallet safely locked away, and never share your recovery phrase with anyone.
• Cryptocurrency wallets are a more attractive target for robbers than banks
• Trezor has warned its users to be wary of SMS text messages that claim it has suffered a security breach
• Cybercriminals are attempting to break into hardware wallets
• Awareness of the risks associated with hardware wallets is essential, and steps should be taken to protect yourself from potential scams
• Keep your hardware wallet safely locked away and never share your recovery phrase with anyone