Protect Your Encryption Assets: Recognizing Hardware Wallet Fraud Techniques

The secure storage of cryptocurrency has always been a focus for investors. Hardware wallets, as physical devices that store private keys offline, are regarded as important tools for protecting encrypted assets. However, with the popularity of hardware wallets, fraudulent activities targeting inexperienced users are also on the rise. This article will explore two common hardware wallet fraud techniques to help investors stay vigilant and ensure asset security.

Fake Prospectus Scam

This fraud tactic mainly targets novice investors who are not familiar with the correct use of hardware wallets. The scammers lure victims into transferring funds to a preset phishing address by replacing the original instruction manual with a counterfeit version.

The specific steps are as follows:

1. The victim purchased a hardware wallet from unofficial channels.
2. After opening the package, activate the device using the "initial PIN code" on the fake instruction manual.
3. The "mnemonic" printed in advance on the backup manual
4. Transfer a large amount of funds to the Wallet address
5. The funds were ultimately transferred by the scammer.

This type of fraud is not achieved by hacking hardware, but rather by scammers pre-activating the device and obtaining the address mnemonic. They then forge the manual, repackage it, and sell it to victims through unofficial channels. Once the victims transfer assets to the preset address, they will fall into the scammers' trap.

Hardware Wallet Scam

This type of scam is more sophisticated, involving modifications to the hardware device itself. Here is a real case:

A user received an unordered package containing a brand new hardware wallet and a letter. The letter claims that due to a cyber attack on the company, user data was compromised, and new devices are being sent to affected customers to ensure security.

However, this is a carefully designed scam. The device has actually been tampered with, and the internal firmware has been replaced, allowing the attacker to access the user's encryption assets.

Precautionary Suggestions

To avoid becoming a victim of fraud, investors should follow the following advice:

1. Only purchase hardware wallets from official channels to avoid using second-hand or unauthorized devices.

2. Ensure that the purchased device is in an unactivated state. If the device is found to be activated or the manual provides an "initial password" or "default address", usage should be immediately stopped and official customer service should be contacted.

3. All important operations must be done in person, including device activation, PIN code setting, address creation, and mnemonic backup. Never allow a third party to operate on your behalf.

4. Be highly vigilant about hardware wallets received unexpectedly without an order, and do not easily use or activate them.

5. Regularly pay attention to the official announcements of hardware wallet manufacturers to stay informed about the latest security warnings and usage recommendations.

By staying vigilant and following the correct usage methods, investors can effectively reduce the fraud risks associated with hardware wallets and better protect the security of their encryption assets.