With the increasing trend of cryptocurrencies and the increasing number of people investing in it, cybercriminals are now trying to break into crypto wallets.
Researchers at Microsoft have now warned of a new threat, dubbed ‘Cryware’.
Cryware is a type of Trojan that works to steal information and steal data from non-custodial cryptocurrency wallets.
Let us tell you, such wallets are called ‘hot wallets’.
Attacker can transfer cryptocurrency to his wallet
Giving details of the cryware, Microsoft has said that once the hot wallet data is accessed, the attacker can use it to transfer the target’s cryptocurrency to their wallets.
The dangerous aspect is that the cryptocurrency once transferred is not refundable.
Transactions on the blockchain are final even if the user does not know about them or has not consented to them.
Cryptocurrencies are completely virtual or digital. It cannot be seen or touched, but can be deposited in an online wallet as a digital coin. It is a digital cash system, completely dependent on computer algorithms.
How hot wallets are different from normal crypto wallets
In custodial wallets, users store assets and tokens with their private keys in third-parties such as crypto exchanges.
In these, private keys act like a password.
At the same time, hot wallets are stored locally on the user’s computer device, allowing cryptographic keys to be easily accessed and used for transactions.
This is the reason why the risk of theft of cryptocurrencies with hot wallets is also high.
Microsoft gave information in a blog post
Software company Microsoft has given information about the danger related to Cryware in a blog post.
“There is currently no mechanism available, like credit cards and other transactions, to reverse erroneous cryptocurrency transactions or protect users from them,” Microsoft wrote.
Cryware can also become a major threat because transactions cannot be changed once they are added to the blockchain.
The dangers rise with the popularity of cryptocurrencies
The report revealed that with the increasing popularity of cryptocurrencies, cases related to Cryware have increased rapidly.
Mars Steeler and Redline Steeler are among such crywares.
With these threats cryptocurrencies are being stolen by stealing wallet data. Apart from this, clipboard manipulation, phishing and other scams have also increased.
Crypto wallets can also be breached by tampering with smart contracts.
Microsoft shares security tips
Microsoft has said that users should keep their hot wallets locked in case they are not actively trading, so that no transactions can be done without their knowledge.
Hot wallet disconnect feature can also come in handy in such situations.
Never save your seed phrases on your device or cloud storage services.
Don’t forget to double-check the value during the transaction and copy the correct address. You can also use a hardware wallet.