Even though blockchain technology is highly secure, crypto wallets and exchanges remain vulnerable due to weak password protection. The biggest threat comes from users being tricked into giving away their login details — a tactic known as social engineering. Poor password habits and lack of uniform safety tools make crypto assets an easy target. Safer options like hardware wallets and multi-party key sharing are emerging solutions.
Social engineering occurs when attackers trick people into revealing confidential information such as passwords or OTPs by pretending to be someone trustworthy.
Example: A hacker may call claiming to be from your crypto exchange and ask for your login code to “verify your account.” If you share it, they can steal your money.
Even though blockchain is secure, the platforms and apps that interact with it depend on passwords. Hackers use social engineering to bypass technical defenses by targeting the user directly.
Hackers stole $44 million from CoinDCX using stolen user credentials. This incident highlights how a single weak password can compromise an entire system.
They use deceptive methods such as:
Example: A message saying “Your account is frozen. Click here to fix it now” may lead to a fake login page.
Example: Using a Ledger hardware wallet ensures the private key is never exposed online.
They are users who manage their own crypto without relying on exchanges. Such users should:
As blockchain systems evolve — such as through bridges and smart contracts — complexity increases. Hackers exploit weaknesses in code or system configurations to attack.
Example: Instead of typing your password, use a fingerprint and a physical security key for maximum protection.
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