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 the 'imToken' wallet from a closed online store via the 'JD.com' platform, then transferred her Bitcoin balance to it 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-configured with a phrase that allowed the scammer 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 do 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 reliable.
Do not trust the recovery phrase provided: Never use any recovery phrase that comes with the device; create a new phrase yourself during the initial setup.
Reinitialize the wallet: Make sure to reset the device before use to ensure the removal of any prior settings or access.
Start with small amounts: Test the wallet first by sending small amounts 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.
Cryptocurrency fraud does not always require complex technical attacks; sometimes, simple negligence or lack of awareness is enough to steal digital currencies.
