A woman lost about 4.35 Bitcoin, equivalent to approximately $520,000 at market prices, after falling victim to a sophisticated scam using a fake digital wallet, according to the blockchain security company 'SlowMist'.
The victim had purchased an 'imToken' wallet from a closed online store via the 'JD.com' platform, then transferred her Bitcoin balance in batches from her account on the OKX platform.
And just two days later, the entire balance vanished.
Investigations revealed that the wallet was pre-set with a phrase that allowed the fraudulent party to access and withdraw the currencies later.
This incident highlights a growing type of fraud that exploits users' ignorance of proper handling of hardware wallets.
How can you protect your money from similar scenarios?
Buy only from the official source: Acquire hardware wallets from the official brand website; avoid open markets even if they seem trustworthy.
Do not trust the recovery phrase provided: Never use any recovery phrase that comes with the device; create a new phrase yourself during initial setup.
Reinitialize the wallet: Make sure to reset the device before use to ensure any previous settings or access are removed.
Start with small amounts: Test the wallet first by sending small quantities of currency before transferring a large balance.
Learn the basics of digital security: Understanding how hardware wallets work and how to manage private keys is essential for protecting your assets.
Fraud in the cryptocurrency space does not always require complex technical attacks; sometimes, simple negligence or lack of awareness is enough to steal digital currencies.