Cryptocurrency Stolen? Here’s What To Do
Do you want to know what to do if your Cryptocurrency is Stolen? Solen cryptocurrency may seem like a death sentence but there’s a lot you can do to better curb the situation. If you have invested or saved in Bitcoin or Ether, your savings are a huge target for thieves and it could be very difficult to recover if stolen. What to do in such a situation is the question here and some tips will be explained below to best answer that question.
Crypto Exchanges Are Hacked Often
The saddest truth is that crypto exchanges can also be hacked. One of the most notable of such fraud occurred in August when cybercriminals stole $610 million in various cryptocurrencies from the Chinese platform Poly Network. The funds were eventually returned by the hackers.
Also, Mt. Gox, a Japanese exchange lost $450 million to crypto hackers/crooks, after which was forced to bankruptcy. In the first seven months of this year, a whooping record of $681 million has been lost from fraud, hacks, and thefts. If the losses continue in this pace, it will lead to a total of $1.17 billion.
You Might Experience A Slug Trying To Recover Your Funds With Well-Established Crypto Exchanges.
You might even experience difficulty in getting your funds back if this nemesis occurs in a well-established exchange. In September, coin base, one of the most popular exchanges launched a live phone support line. This was after reportedly receiving thousands of customer complaints.
This didn’t seem to have pleased some of its unhappy customers. Coinbase didn‘t respond to the various requests for comments but just noted on its website that it carries crime insurance protecting only a portion of its customer’s digital assets against losses from theft and data breaches.
The company had confirmed that it has started testing a new subscription service that will allow transactions without paying a fee per trade. The Block reported that the service also includes additional account security and “prioritized phone support“
This strategy seems not to be the best solution if someone hacks your personal wallet, the software, or the hardware used to store crypto and not the crypto exchange itself. This is because no one is in charge of cryptocurrencies, it is decentralized.
Its Best to Keep Majority Of Your Crypto Funds In Cold Wallets
The best approach is to make sure your crypto-assets don‘t get stolen which will involve moving the majority of your crypto assets into cold wallets that aren‘t connected to the internet and then, secure any funds you have in hot wallets as tightly as possible.
What if something bad happens? Don‘t panic, here‘s what to do.
Protect What Ever You Have Left | Cryptocurrency Stolen
According to Pezet, the best thing to do is to transfer the remaining funds from your compromised wallet. Delete the wallet and get a new one.
Change any password related to your exchange should be changed immediately, says Andrew Gunn, Senior threat intelligence analyst at ZeroFOX. If you think the devices you used in accessing your account may be compromised, switch email accounts, reformat the device or better still don‘t use it anymore.
Call Customer Service
If you operate with a very big and well-known exchange, you might possibly get some help. You must act immediately and your exchange might be able to freeze your funds depending on what stage the theft is, says Gunn.
Be aware, however, that many exchanges aren’t under many obligations to help. Some exchanges are located in countries with few regulations that cover cryptocurrencies. Some countries don’t consider crypto to be an asset, Pezet says, reducing the odds of getting help from authorities even further.
Report The Theft
There is no guarantee that you will be able to recover your fund by filing a report but it doesn‘t hurt to have a case number documentation. You might be favored by an insurance claim or a lawsuit. Having good evidence that you took the theft seriously will help you establish your standing if you have to.
Finally, it is best to observe the best safety practices that will help protect your crypto funds from being stolen in the first place. You have to be very careful with your hot wallets and save the majority of your crypto funds in a more secured cold wallet.