Used $520,000
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 firm 'SlowMist'.
The victim had purchased the 'imToken' wallet from a closed online store via the 'JD.com' platform, then transferred her Bitcoin balance in installments from her account on the OKX platform.
And after just two days, the entire balance evaporated.
Investigations revealed that the wallet had been pre-configured with a phrase that allowed the scammer to access and withdraw the funds later.
This incident highlights an increasing type of fraud that exploits users' ignorance regarding 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 trustworthy.
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 any previous settings or access are removed.
Start with small amounts: Test the wallet first by sending small amounts of cryptocurrency before transferring a large balance.
