German Office for Information Security Recommends Hardware Wallets
Date: 2024-08-19 Author: Oliver Abernathy Categories: CRYPTO PAYMENTS
BSI began by describing “hot” wallets linked to cryptocurrency exchanges. The agency noted that while storing cryptocurrency in such wallets may be convenient for users, this method is the least secure. This is because these wallets are constantly connected to the internet, making them vulnerable to hackers.
BSI then turned its attention to self-storage wallets installed on computers or smartphones. This storage method is considered more secure than storing cryptocurrency on exchanges, since users have control over their private keys. However, these applications are also susceptible to security threats. The main attack vector for such wallets is the internet, through which hackers can download malware to devices and steal private keys.
Finally, the BSI recommended hardware wallets, noting their reliability and PIN protection. Users were also advised to back up their seed phrases or private keys and store them in a safe place.
Cryptocurrency hacks to rise in 2024
According to Chainalysis, cryptocurrency hacks increased by 2.8% in 2024 compared to the previous year. However, due to rising digital asset prices, the total amount of funds stolen increased by 84.4%.
Cybersecurity company Halborn reported that private key exploits accounted for 52.2% of all hacks in 2024, and their share of the total value of funds stolen was 57.5% among the 100 largest attacks on decentralized finance platforms.
Several major attacks in July significantly impacted the cryptocurrency market. In July, the total amount of cryptocurrency stolen was $266 million, which is largely due to the hack of popular Indian crypto exchange WazirX.
Thieves believed to be associated with the North Korean hacker group Lazarus hacked WazirX's multi-signature wallet and stole $235 million.
