Do Browser Extensions Put Your Crypto Holdings At A Greater Risk Of Being Hacked?
Cryptocurrency trade has become more popular this year due to the run that Bitcoin has been on. Faltering money markets have pushed institutional investors to place their funds in Bitcoin, whose price rise has created confidence in it as a safe haven asset. With this growth of crypto trading, scammers and hackers have developed several news methods through which they steal crypto holdings from their owners.
Growing Number of Crypto Scams
Cryptocurrencies have long been associated with scams and other illicit activity, and this has affected their adoption into the mainstream. Many prospective traders are scared of falling victim to scams run using digital assets, and hence, they stay away from the trade of this asset class. Research suggests that over $4 billion has been lost to crypto scammers and hackers in the first half of the year alone.
Browser Extensions being used by Crypto Scammers
Jeremy Welch, Casa’s CEO, said that browser extensions can be used to steal cryptocurrency. He said that browser extensions come with some major risk, and there needs to be more conversations about these risks. Browser extensions have access to a wide range of data about a browser’s user, and this data can be used to gain access to a person’s crypto wallet and steal their holdings.
If one has used the same browser to share their Bitcoin wallet address, it is possible that the extensions installed on the browser could store the information. The extensions also capture a variety of KYC data such as passwords and personal details, and having access to all this information gives a hacker the ability to possibly access one’s crypto holdings.
There are many commonly used software applications that ask for a user’s KYC data, and these could also pose a risk for a crypto user. Welch used extension wallpapers as evidence of some of the ways through which hackers and scammers could access a person’s personal data. Some of these wallpapers could go as far as stealing pictures of a user’s ID documents when one uploads them to websites that require such KYC authentication.
Need for Extra Security
Welch said that there is a need for developers to create more secure methods for crypto users to access their browsers without compromising their crypto holdings. He added that Casa is doing more research into the security of cryptocurrencies, and they are inviting more developers to come on board and contribute more ideas about security.