Key Reasons Why You Should Avoid Buying Crypto Hardware Wallets From Unofficial Sources

The hardware wallet, a physical device designed to store the private keys to your digital assets offline, away from the vulnerabilities of internet exposure, is usually considered paramount to crypto security. However, recent advisories from SlowMist, a cybersecurity firm, have highlighted a significant risk: the dangers of purchasing hardware wallets from unofficial sources.

SlowMist’s warnings come after the occurrence of multiple theft reports linked to hardware wallets bought from unauthorized sellers. The core of the problem lies in tampering with these devices, which can compromise the security of the stored assets. It is critical for users to understand that hardware wallets bought from unofficial channels may already be manipulated, leading to potential fraud and asset loss.

SlowMist reminds that hardware wallets purchased from unofficial channels are at risk of theft, and any pre-created PIN code is at risk of fraud; new devices must be activated when used for the first time, and mnemonic phrases must be created and backed up. Otherwise, there is a…

— Wu Blockchain (@WuBlockchain) January 15, 2024

One alarming practice identified involves preset PIN codes in these corrupt wallets. Users must be aware that a legitimate hardware wallet requires the user to set a new PIN upon initial setup. Any device that comes with a precreated PIN should be treated with suspicion, as it indicates potential unauthorized access and manipulation.

Moreover, the process of activating a new device and generating a mnemonic phrase is crucial. If a wallet is purchased from an unofficial source and these steps have already been completed, it is a red flag. The mnemonic phrase is the backbone of your wallet’s security, and if compromised, can lead to unauthorized access to your funds.

In a recent advisory, specific unofficial stores on JD.com have been identified as selling potentially compromised imKey hardware wallets. Stores such as Fengyun Technology Hardware Wallet Studio, Preferred Hardware Wallet Studio and others have been flagged for selling these devices, thus posing a risk to unwary consumers.

As a rule of thumb, always purchase hardware wallets directly from the manufacturer or from authorized retailers. By doing so, you ensure the integrity of the device and safeguard your digital assets. In sum, adhere to imKey’s security tips: set your own PIN, activate new devices personally and securely back up your mnemonic phrase.

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