Reported by: VIKRAM BARHAT

Cybercriminals pilfered roughly $4.5 billion worth of digital currency in 2021, more than twice the 2020 total. In the first half of this year alone, nearly $2 billion worth of crypto has been lost to hacking, clocking a 60% jump in such instances.

Whether your coins are held privately or on a crypto platform, the following measures are key to keeping crypto criminals at bay:

• Switch to multi-factor authentication:McGill recommends disabling SMS text messaging for two-factor authentication. Security experts argue that text messages are vulnerable to hijacking. In a research project, security researchers showed how hackers can exploit the flaws in the cell network to intercept people’s text messages, then use that information to reset the password to the Gmail account associated with their crypto account—effectively gaining control of the account holder’s wallet and the cryptocurrency stored within. McGill also advises crypto holders to instead “utilize multi-factor authentication [MFA] tools such as Google Authentication or a physical key such as Yubikey [a hardware authentication device].”
• Keep your seed phrase a secret: Your seed phrase is an access key to your crypto wallet; it allows you to access your blockchain assets even if you lose the hardware that holds your private keys. Never store your seed phrase or personal information on your computer or take screenshots on phones, since both devices can be accessed by skilled hackers, says McGill. The seed phrase—a unique list of words generated by your crypto wallet—is the most vital piece of the security of your cryptocurrency. Sharing your seed phrase with others, accidentally or intentionally, is akin to handing someone your debit card and PIN code. Using your seed phrase, a crypto thief can gain access to your crypto assets and drain your account. The best way to protect your seed phrase is to write it down on a piece of paper and keep it somewhere safe.
• Quit reusing passwords: A common-sense, but frequently ignored, approach is to not recycle passwords or use the same password for multiple accounts. McGill recommends using a password manager, which is an encrypted digital vault—accessible via your web browser or an app—that securely stores login information for apps and accounts. Password managers also generate long, unique, hard-to-crack passwords.
• Use different email addresses: “Consider using a fresh email address for each crypto exchange account,” says McGill. “Your email accounts should also have multi-factor authentication set up and use separate passwords from any crypto accounts.” 
• Choose your crypto companies carefully: McGill recommends extensive due diligence while choosing a crypto exchange to buy and store assets. “The most secure cryptocurrency exchanges enable capabilities such as MFA, allow listing of withdrawal addresses, physical keys required to log into accounts, and cold storage options,” says McGill. Other details to look for: Is the exchange registered with securities regulators where you live? Does it comply with Canadian privacy laws? Does it offer 24/7 customer service? You want the answers to these questions to be a capitalized YES!

Read full report: https://www.moneysense.ca/save/investing/crypto/how-to-protect-your-crypto-from-hacks/