How Fake Crypto Wallets and Malicious Browser Extensions Steal Your Digital Assets

Crypto can get confusing quickly, especially for those who are newcomers to the game. Sadly, the financial gains promised by cryptocurrency trading attract not only the eager but also those eager to prey on them.

There are countless scams and phishing attempts connected to cryptocurrency, but today, we’re going to be looking at the fake crypto wallet and malicious browser extension, two dangerous methods of separating you from your crypto. Not to worry, we’ll also be teaching you the warning signs and the methods to protect against them.

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The Fake Crypto Wallet Scam

Let’s start with the crypto wallet scam.

What Is It?

Crypto fund transfers require wallet information, like keys, that grant someone access to your account. Some legitimate services might ask for unlimited access for the sake of convenience. Instead of needing repeated approvals, with access to your wallet key, they can deposit your crypto assets.

A company may offer you a fake crypto wallet, claiming it’s a secure way to manage your cryptocurrency. Sometimes they’re promoted by popular YouTuber stars, or you might even find one in an app store. Additionally, you could be contacted through social media, messaging platforms, or email, with offers to use their wallet.

But once you’ve done so, they’ll have access to the key of your fake wallet via request (or keylogging). Or they’ll ask you to transfer funds to a malicious account, taking your funds in the process. Before you know it, they’ve disappeared along with your crypto.

How to Guard Against It

In such a decentralized world as cryptocurrency, it can be hard to tell who to trust. Still, here are the red flags to watch out for:

Beware the new or unknown – Crypto wallets from new companies or startups may promise the moon, but more often than not, they’ll fail to deliver. Only use trusted, established sources with a reliable footprint. Sudden hype online, or promotion by certain YouTubers who don’t use the product, should also have you worried.
They come to you – The top wallet providers know they’re good, and don’t need to go looking for customers. If you’re being solicited, you should also be cautious.
Strange addresses – If you’re being offered a crypto wallet from a Gmail account, or are directed to a wallet broker by a URL link that is a little too long and strange, you’re probably being phished. To avoid phishing, always download wallets directly from the main site.
Convenience – If things seem a little too easy to set up and skip vital security checks, you should be suspicious.

Malicious Browser Extensions

The malicious browser extension scam can target any web browser, but it is particularly prevalent on Firefox. Let’s find out what they are:

What Is It?

The browser extension scam relies on cloning and impersonating well-known wallet tools and companies, inflating their presence through bot reviews and bought hype. They either claim their own legitimacy or ride on another tool’s coattails, all to get you to add their service to your browser.

How the scam proceeds from that point can vary. Some scammers use keylogging or clipboard monitoring, others obtain your IP address, while others simply get you to transfer funds to a “secure wallet.”

The difficulty is that these extensions operate on your browser directly, stealing your personal info or key. You’ve invited them in, as it were.

How to Guard Against It

It sounds scary, but here’s how to protect yourself:

Watch the language – Many of the creators of these extensions don’t use English as their first language. Watch out for spelling and grammatical errors on the blurbs.
Trust what you know – The same holds for crypto wallets. Go with the tools and the companies that you know can be trusted. Be sure to check extension ratings, too. Browser companies get rid of these unscrupulous extensions, but may not be able to do so immediately.
Look at permissions – How much access is this extension looking to gain? Any extension asking for full access to your crypto should make you suspicious.
Split your wallet – Many crypto users have an offline Cold Wallet that stores most of their funds. Make sure whatever online (or hot) wallet you have isn’t your main one.

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