Here’s what to do if your crypto wallet has been hacked

If your crypto wallet has been drained of funds, it’s not hopeless.

Crypto scams have skyrocketed to a $24.2 billion industry, according to recent data from Chainalysis, with hackers growing more sophisticated each year. If criminals successfully drain your crypto wallet, it’s imperative to have a plan. TheStreet Crypto spoke to Abdul Rafay Gadit, co-founder of cryptocurrency social trading platform Zignaly, about what users can do to secure their assets when nefarious actors gain access to their accounts.

TheStreet Crypto: If a person discovers their crypto wallet has been drained of funds, what’s the first thing they should do?

Disconnect

Disconnect from the internet and immediately try to trace what went wrong. Save whatever funds you can and check whether the private key or seed phrase has been compromised. If you’ve stored sensitive information digitally — such as on a cloud service or your phone/computer — remove it as soon as possible.

Remain calm

The first crucial step is to remain calm and act fast, yet thoughtfully.

Secure the device immediately, disconnecting it from the internet to prevent further unFauthorized access.

Report the incident to the relevant authorities or wallet where the cryptocurrency was stored, providing details and evidence of the theft. There’s a chance that one of their devices is compromised and not just the wallet. To be sure, check the transaction history to assess the extent of the loss and gather evidence.

Notify your bank and cryptocurrency exchanges if fiat transactions are involved.

Change passwords

Change passwords and enhance security measures across all associated accounts, including enabling two-factor authentication.

Investigate the breach to understand how it occurred, specially looking into “connected apps” and consider reporting it to law enforcement if criminal activity is suspected.

Monitor other financial accounts for suspicious activity and seek professional assistance to maximize the chances of recovering the stolen funds.

Acting fast is crucial to minimizing losses and increasing the likelihood of a successful resolution.

TheStreet Crypto: If they still can’t figure out how it happened, what resources can they use?

Seek help from professionals

If unable to determine how their wallet was compromised, seek help from cybersecurity experts, blockchain analysis firms, online communities, and legal counsel. They should also contact exchanges or wallet providers and consider involving law enforcement if needed. These resources can assist in understanding the breach and preventing future incidents.