Another crypto asset owner had his wallet drained after clicking on a phishing link.
All it took was one single mouse click.
As this person mentions in the tweet, after a long day, while tired, they decided to click on a link without doing any research ahead.
https://x.com/quiksetzz/status/1806854742787629119
This led to transaction approval, which enabled the attacker to transfer the NFTs even though the victim rejected the transactions!
We wish this person the best and hope he becomes stronger from this situation.
We can all make mistakes. Anyone can have a bad day and make a poor decision, and the same can happen to anyone.
But even if we encounter the same situation, we can take some precautions to avoid losing our hard-earned crypto assets.
Do Not Hold Valuable Crypto Assets in a Hot Wallet
The obvious is not to hold valuable crypto assets in a hot wallet. But we are all guilty of thinking every so often something like:
“It’s convenient to keep my crypto assets in a hot wallet, and I’m an experienced user, so I won’t fall for a hack or scam. I should be OK.”
But procrastination can be costly.
To avoid a similar situation and losing your crypto assets, consider transferring them to a cold wallet.
But how can I claim airdrops or interact with Web 3 platforms?
This is only possible by holding my NFTs in a hot wallet so I can prove ownership or sign transactions…
No problem: You must know it is possible to delegate an asset or wallet using a delegation service like delegate.xyz and still use the asset (e.g., NFT) as if a hot wallet held it.
So, you accidentally click on a phishing link or approve a malicious transaction.
Because your asset is delegated, your NFT will remain safe:
Once delegated, approving an NFT transfer through a hot wallet transaction is impossible. It requires a transaction approval signed through the cold wallet.
If you have never used a delegation service before, you may want to have a look at this post to widen your knowledge:
NFT Delegation — How to Protect Your NFTs from Malicious Smart Contract Approvals.
Use a Web3 Security Browser Extension
Delegating your valuable assets is a great way to actively use them while keeping them safe in your cold wallet.
But if owning a cryptocurrency cold wallet is not an option for you, there is another layer of defense that may prevent malicious approvals.
In the post, it is mentioned that even after rejecting the transaction, the wallet was drained.
This indicates a sophisticated method employed by hackers and scammers to transfer assets from the victim’s wallet without needing explicit transaction approval.
Fortunately, tools are available to protect our assets even if we accidentally click on a malicious link.
Free Web3 security tools like Wallet Guard can simulate a smart contract transaction before it is initiated at the cryptocurrency wallet, allowing users to identify and reject potentially harmful actions before they reach their wallet.
These Web3 security tools can safeguard our crypto assets and prevent unauthorized transactions, even if we make a mistake or click on a malicious link.
Here is an example of a crypto asset transaction simulation before it reached the cryptocurrency wallet.
An NFT is sold for 18 USDC: NFT is sent, and USDC is received in exchange.
This is expected so we can press ‘Continue’ and send the transaction to our wallet for approval.
To learn more about the Wallet Guard Browser Extension, you may want to read Wallet Guard Extension — How To Proactively Secure Your Crypto Wallet
But do not rely solely on one opinion.
Conduct your research, find the right tool for you, and add a layer of protection to your cryptocurrency wallet.
Our thanks to ‘quik’ and all those who share their stories so we can all learn from them.
Congratulations on completing this 5-minute digital safety power-up.
We hope this short article has helped increase your crypto and digital safety knowledge and awareness and that the five minutes it took to read was worth the time.
For more 5-minute Power Power-Ups, please consider subscribing to our blog.
