In this post we consider how to analyze and verify claims (myths) made by marketers and promoters of products/services. As an example, we consider the following myths related to hardware wallets: a) hardware wallets are the most secure wallets; b) users will have peace of mind by storing crypto in hardware wallets.
To analyze and verify these claims, we need to ask the following critically important questions:
1) Can hardware wallets be hacked?
2) Have they been hacked in the past?
3) Do manufacturers admit the hacks?
4) Are there any better alternatives?
5) Is anyone offering services in hacking hardware wallets?
Let us find answers to these questions!
Question 1. Can hardware wallets be hacked?
The answer to this question is definite -yes. There are many (at least 7) ways in which hardware wallets can be hacked. See links below.
You Are NOT That Safe With A Hardware Wallet!
https://captainaltcoin.com/can-hardware-wallets-be-hacked/
7 Ways Your Crypto Hardware Wallet May Be Hacked
https://coinstop.io/blogs/blog/7-ways-your-crypto-hardware-wallet-may-be-hacked
Can Hardware Wallets Be Hacked? (Yes, Here’s How)
https://cyberscrilla.com/can-hardware-wallets-be-hacked-yes-heres-how/
Question 2. Have they been hacked in the past?
The answer to this question is definite -yes. Here are some examples.
https://www.coindesk.com/consensus-magazine/2023/12/14/what-we-know-about-the-massive-ledger-hack/
https://cryptobriefing.com/ledger-security-breach-investigation/
Joe Grand hacked Trezor One hardware wallet
https://www.theverge.com/2022/1/24/22898712/crypto-hardware-wallet-hacking-lost-bitcoin-ethereum-nft
https://www.reddit.com/r/ledgerwallet/comments/14fl13c/my_ledger_got_hacked_for_80k
https://www.publish0x.com/cryptocurrencies-investments/problem-with-my-ledger-xkeoqgo
Update for 2025.
Those, 1.5 billions stolen from Bybit were due to private keys hack from the cold wallet.
https://www.onesafe.io/blog/cryptocurrency-security-lessons-from-bybit-hack
Question 3. Do manufacturers admit the hacks?
As a rule, manufacturers do not admit hacks, instead they blame users for the hacks. Here is one such example.
https://www.reddit.com/r/ledgerwallet/comments/14fl13c/my_ledger_got_hacked_for_80k
But, in some cases, companies do admit hacks and even compensate victims for loses. Here is an example.
Question 4. Are there any better alternatives?
The answer to this question is definite -yes. Generated on demand (GOD) wallets, secure brain wallets (SBW) and other types of virtual wallets (VW) are more secure than hardware wallets. Do not confuse SBW with CBW (classical brain wallets). CBWs have the same problem as weak passwords, therefore they are not secure. In addition to high security, it is very easy to manage multiple virtual wallets. See [4].
Question 5. Is anyone offering services in hacking hardware wallets?
The answer to this question is definite -yes. There are many teams, including legal businesses, which offer such services. Here is an example.
https://www.unciphered.com/services
In addition to this, there are many crypto wallet drainers. According to [1-2], scammers stole $494 million worth of cryptocurrency in wallet drainer attacks last year that targeted more than 332,000 wallet addresses. This marks a 67% increase over 2023 figures. Hot and cold wallets are targeted. To protect your crypto use the method described in [3].
As we can see, these claims of marketers and promoters are false marketing myths ("fake claims") and users should know this fact.
References:
P.S. More links:
Hardware Wallet Risks: Why The Brain Of Hardware Wallets Is Actually Their Biggest Weakness
https://www.athena-alpha.com/hardware-wallet-risks/
TOP 5 SECURITY THREATS OF HARDWARE WALLETS
https://www.halborn.com/blog/post/top-5-security-threats-of-hardware-wallets
Five types of attacks on hardware crypto wallets
https://www.kaspersky.com/blog/five-threats-hardware-crypto-wallets
Hardware Wallet Risks: What You Need to Know
