Main Takeaways
Trojan malware disguises itself as legitimate apps, but what it is really designed to do is gain unauthorized access to affected devices, potentially executing a range of malicious actions.
Trojan attacks can lead to bad actors stealing your data, silently logging keystrokes, hijacking transactions, and siphoning off funds.
Protect yourself by using MPC wallets, reviewing app permissions, only downloading applications from official sources, and storing keys offline.
Some malware doesn’t force its way in — it waits for you to invite it. These malicious programs, known as Trojan horses or simply Trojans, are malware disguised as legitimate applications. Once inside a device, Trojan malware can log keystrokes, hijack transactions, or even drain funds in an instant. And because it often masquerades as trusted software — like a wallet extension, trading tool, or security update, some users may unknowingly install it themselves. In this blog, we’ll break down how Trojan malware works, why it’s a growing threat in Web3, and, most importantly, share some actionable steps you can take to protect your funds.
How Trojan Malware Steals Crypto
Trojan malware designed to steal cryptocurrency often disguises itself as a trusted app, tricking users into handing over access to their wallets. Once installed, these malicious programs operate stealthily, employing various tactics to drain funds before the victim even realizes something is wrong.
Masquerading as Legitimate Apps: Scammers create fake versions of popular crypto wallets, mining platforms, or security tools, replicating their logos and interfaces to appear trustworthy. Unsuspecting users, believing these apps are genuine, install them and grant the malicious software key permissions during setup.
Extracting Sensitive Information: Once inside, the malware begins extracting critical information. It can silently scan files, read clipboard history, and even log keystrokes. Some versions go a step further, prompting users to enter their seed phrases or private keys under the guise of “security verification” or “account recovery.” Unbeknownst to the victim, this information is being transmitted to a remote server controlled by the scammer.
Hijacking Transactions: Some Trojans don’t stop at stealing information – they actively manipulate transactions. By exploiting clipboard permissions, they can alter transaction details in real time. A user may copy and paste a wallet address for a legitimate transfer, but the malware quickly swaps it with one controlled by the attacker. If the user doesn’t double-check before confirming, their funds are sent directly to the scammer’s wallet.
Real-Life Example: The ‘Bom’ Trojan Attack
Recently, a number of users downloaded an application called "Bom," which appeared to be a legitimate software tool for crypto mining. However, beneath its harmless exterior, the app was actually a Trojan designed to steal digital assets.
Once installed, the app requested permissions for local files and album access under the guise of "functionality." While it appeared to need these permissions for legitimate purposes, the real intent was far more sinister. The app silently scanned and stole digital content stored on the device, uploading it to a remote server controlled by the attackers.
The primary target for the malware were any files or images that might have contained the user's private keys or seed phrases – information critical to accessing and controlling their cryptocurrency wallets. With this sensitive data in hand, the scammers were able to take full control of users' wallets, resulting in over $650K worth of stolen funds across multiple blockchain networks.
This attack highlights the importance of being cautious when granting app permissions and verifying the legitimacy of the software you're installing.
Ways to Protect Yourself
Unlike brute-force attacks, Trojans rely on tricking users into installing them willingly. Many victims don’t realize they’ve been compromised until it’s too late. Here’s what you can do to protect yourself.
1. Use an MPC Wallet
Multi-Party Computation (MPC) wallets such as Binance Wallet offer a more secure way to manage crypto assets by eliminating the need for a seed phrase or a single private key.
With an MPC wallet, there is no single point of failure. The signing process is distributed across multiple devices or parties, making it significantly harder for malware to compromise funds.
Even if one key is stolen, it remains useless on its own — since multiple keys are required to access the wallet, unauthorized access will not be granted.
Unlike traditional wallets that rely on one set of seed phrases, MPC wallets provide more secure and flexible recovery options, ensuring users maintain control of their assets without a single point of failure.
2. Always Review App Permissions
Always review the permissions an app requests before installing or updating it, especially when dealing with cryptocurrency-related applications. Before granting any permissions, carefully consider whether the app genuinely needs them to function. Some applications may request full device access – such as control over storage, SMS, call logs, or file access – which could be exploited to extract sensitive data.
Even seemingly minor permissions can be dangerous. Clipboard access allows malicious apps to intercept copied wallet addresses or seed phrases, while accessibility features can enable them to track your on-screen activity and keystrokes, putting your funds at risk.
3. Only Download from Trusted Sources
Minimize risk by avoiding unnecessary app installations and only downloading applications from official sources, such as an app store or the developer’s official website. Before installing, verify the developer’s details and check for suspicious reviews or reports of fraudulent activity as even seemingly legitimate apps can be compromised.
4. Store Your Seed Phrases or Private Keys Offline
Always keep your seed phrases and private keys offline, either written down or stored on a device that isn’t connected to the internet. Digital storage increases the risk of theft, as malware can scan files and take screenshots without your knowledge to extract sensitive information.
Final Thoughts
Cyber threats will only grow more sophisticated as crypto adoption accelerates, but there are reliable ways to protect yourself. The steps you take today – double-checking app permissions, adopting secure wallet solutions like MPC wallets, only downloading from trusted sources and storing your keys offline – can make the difference between peace of mind and disaster down the road. Don’t wait until it’s too late – prioritize safety now and explore our security series to stay ahead one step ahead of bad actors.