Scammers use the Ledger Nano S to steal crypto funds from wallet. How did they do it? Isn’t hardware wallets supposed to be the most secure way to store your crypto currency?
A poor guy posted on Reddit that he bought a Ledger Nano S on ebay from a reputable seller. The Nano S was sealed and looked brand new. He stored £25,000 in crypto currency on the Nano S.
After a week he decided to check the value of his XRP, Litecoin and Dash only to find that there was nothing there it just showed a balance of zero. Where did it go?
The Scam was so simple!
The Scam was so simple, It turned out that the Nano S was not brand new and had been carefully repackaged and sealed. The scammer had already taken the random seed (24-word list) which is generated by the computer. The scammer inserted a scratch card with the seed words which looked authentic and the victim scratch the card to reveal the seed. Which was added to the box by the scammer.
If it’s the first time your using a hardware wallet and you have not read the instructions properly you may not smell a rat! That’s what happened to the victim all his funds £25,000 gone! He said he felt physically sick.
So, what have we learned from this scam?
- Do not buy any hardware wallets from any other vender unless it’s recommended by the manufacturer.
- Inspect your product make sure it has not been tampered with in anyway, if in doubt return it.
- Read the instruction carefully read it several times, make sure you understand each step
- Check Youtube for reviews and tutorials on how to use your wallet before you add your funds, make sure the tutorial is the same as the instruction that came in the box, if it isn’t speak to the manufacturer.
- Remember if you have any doubts about your new wallet do not add your funds on it, it could be a scam.
- Remember the seed words which is used to recover your funds if you lose you password can only be generated by your computer, it is part of the setup before you can use your hardware wallet. It does not come in your box on a scratch card or any other method.
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