{"id":4930,"date":"2022-08-14T09:23:52","date_gmt":"2022-08-14T09:23:52","guid":{"rendered":"https:\/\/cyberscrilla.com\/staging\/4768\/?p=4930"},"modified":"2022-08-17T14:35:36","modified_gmt":"2022-08-17T14:35:36","slug":"can-a-ledger-wallet-be-hacked","status":"publish","type":"post","link":"https:\/\/cyberscrilla.com\/staging\/4768\/can-a-ledger-wallet-be-hacked\/","title":{"rendered":"Can A Ledger Wallet Be Hacked? (+ Tips to Keep it Safe)"},"content":{"rendered":"\n

If you own any sort of digital assets like NFTs<\/a> or crypto, then you have probably heard about Ledger hardware wallets<\/a>. These wallets are said to be the safest way to store your digital assets\u2014but can a Ledger wallet be hacked?<\/p>\n\n\n\n

Ledger wallets are built to withstand physical and software attacks. Its security chip means it’s resistant to malicious attacks like fault injections, laser attacks, electromagnetic tampering, and power glitches. Also, its BOLOS operating system keeps apps isolated to ensure private info remains secure.<\/strong><\/p>\n\n\n\n

Knowing the various ways a Ledger wallet could be compromised and how to avoid these various attacks is crucial to keeping your wallet and the assets within it safe. In this article, you\u2019ll learn what to look out for and how to know if your wallet has been compromised.<\/p>\n\n\n\n

How Can A Leder Wallet Be Hacked?<\/h2>\n\n\n\n

There are numerous ways that hardware wallets can be attacked. That being said, Ledger has done a great job covering all its bases to ensure these hacks don’t affect their devices. Here are some realistic ways a hardware wallet could be hacked, and how Ledger eliminates the threat.<\/strong><\/p>\n\n\n\n

\"A
Potential hardware wallet hacks<\/figcaption><\/figure>\n\n\n\n

1. Power Glitching<\/h3>\n\n\n\n

Power glitching<\/a> can be used to violate a cryptographic coprocessor by disrupting the system and flooding the power supply of the hardware\u2019s circuit board. If done correctly, this brief surge of power could lead to your wallet\u2019s private info being exposed.<\/p>\n\n\n\n

In order to execute this attack, a hacker would need physical access to your wallet. <\/p>\n\n\n\n

Ledger’s Solution:<\/strong> By using a high-end security chip called a secure element<\/a> (the same chip found in passports and credit cards), Ledger is resistant to this type of attack. Ledger wallets are the only hardware devices that use SE chips.<\/p>\n\n\n\n

2. Side-Channel Attack<\/h3>\n\n\n\n

A side-channel attack<\/a> (SCA) is exploit hackers use to extract private info from a chip or system. This is done by analyzing various physical parameters such as supply current, execution time, and electromagnetic emission.<\/p>\n\n\n\n

Hackers could potentially listen to the noise of the wallet while testing random PIN codes and also observing how each code changes the consumption behavior.<\/p>\n\n\n\n

Since different PINs will leave a different footprint, hackers can determine which codes might work. Moreover, by watching the behavior of the power consumption with each attempt, hackers can build a database of information.<\/p>\n\n\n\n

This database could then be used with a script that guesses PIN numbers one by one, eventually guessing the correct PIN.<\/p>\n\n\n\n

Ledger’s Solution: <\/strong>In the case of a side-channel attack, Ledger’s secure element is able to safeguard against this type of attack as well.<\/p>\n\n\n\n

3. Software Attack<\/h3>\n\n\n\n

A software attack is a direct hit on a device\u2019s hardware security module<\/a> (HSM). This module is responsible for safeguarding and managing digital keys, performing both encryption and decryption functions for digital signatures, and other cryptographic functions.<\/p>\n\n\n\n

To attack the HSM, hackers need to have a better understanding of the technology than the developers themselves in order to locate vulnerabilities in the software\u2019s code.<\/p>\n\n\n\n

Carrying out this type of attack would require the hacker to plug in the hardware module to a computer to recover its underlying software. Then, after running a script that scans the code of the device, it locates the software in binary form<\/a>\u2014which only computers understand.<\/p>\n\n\n\n

Of course, with a little finagling, hackers can transform the code into a human-readable form. From there, the goal is to find a vulnerability in the software so that the attacker can take control of the software and receive data from it.<\/p>\n\n\n\n

Ledger’s Solution:<\/strong> The device’s BOLOS operating system keeps apps isolated to ensure private info remains secure. That means if you were to download an app that had malicious intent, there’s no way it could gain access to the private information that’s stored on your Ledger device.<\/p>\n\n\n\n

4. Phishing Link Scam<\/h3>\n\n\n\n

Perhaps the most common type of scam that is experienced in the web3 space is accomplished via a phishing link. These links lead to malicious websites that are designed to gain access to your wallet.<\/p>\n\n\n\n

Generally, visiting this type of website isn\u2019t enough to get your wallet compromised. Instead, scammers will create a website that looks like a popular and trusted website (such as a well-known NFT marketplace<\/a>) or offer you a deal that\u2019s too good to pass up.<\/p>\n\n\n\n

Then once you go to sign the transaction using your wallet, you actually voluntarily sign over your access to the attacker. From there, the scammer swiftly sends all your digital assets to their own wallet so that they can liquidate them for a quick profit.<\/p>\n\n\n\n

The worst thing about this common NFT scam<\/a> is that it usually goes unnoticed, that is, until it\u2019s too late and you realize your wallet has been drained. To make things worse, hackers don\u2019t need physical access to your Ledger device to accomplish this attack.<\/p>\n\n\n\n

All they need is for you to get online, click on their link, and then sign a transaction using your wallet. <\/p>\n\n\n\n

Ledger’s Solution:<\/strong> Since Ledger hardware wallets store all of its sensitive information offline and on the device itself, there is little concern for this type of hack. However, if you decide to connect your wallet to a malicious site and voluntarily sign over control, there’s very little that can be done at that point. That’s why it’s important to stay vigilant and consider getting a second wallet (one for transactions and one for storage).<\/p>\n\n\n\n

How Secure Are Ledger Wallets?<\/h2>\n\n\n\n

Ledger devices are the most secure wallets on the market. By using a combination of a secure chip (the same technology found in credit cards and passports) and its one-of-a-kind BOLOS operating system, Ledger wallets are protected from malicious attacks including software, side-channel, and glitches.<\/p>\n\n\n\n

\"Ledger
Ledger wallet security features<\/figcaption><\/figure>\n\n\n\n

To further elaborate on just how secure Ledger devices are, let’s break down each security measure.<\/p>\n\n\n\n

Password<\/h3>\n\n\n\n

Let’s start with the basics. All ledger wallets require you to set up a password so that you can lock it to prevent unauthorized access. The password encrypts all your sensitive user data such as your account names, public addresses, and your transactions. <\/p>\n\n\n\n

To ensure your password remains secure, it should be a mix of upper and lower-case characters.<\/p>\n\n\n\n

PIN Code<\/h3>\n\n\n\n

Ledger\u2019s PIN code contains 4 or 8 digits chosen by you when you first set up the device. This adds another layer of protection by preventing unauthorized access to your digital assets. You can always change your PIN code at any time.<\/p>\n\n\n\n

Secret Phrase<\/h3>\n\n\n\n

If you aren\u2019t aware, nearly every crypto-based wallet comes equipped with a secret phrase (also called seed phrase, private key, and recovery phrase). This phrase is the literal key used to access your wallet. Even if you forget your password, you can use your wallet\u2019s recovery phrase to regain access and create a new password.<\/p>\n\n\n\n

Most wallets come standard with a 12-word secret phrase, however, Ledger wallets come with a 24-word phrase. But, how secure can this phrase really be? Extremely secure.<\/p>\n\n\n\n

Ledger uses a standard called BIP-39<\/a> to generate every single one of their wallet\u2019s secret phrases. This standard consists of only 2,048 words from the BIP-39 wordlist<\/a>. <\/p>\n\n\n\n

That being said, there are 115,792,089,237,316,195,423,570,985,008,687,907,853,269,984,665,640,564,039, 457,584,007,913,129,639,936 possible mnemonic seeds.<\/p>\n\n\n\n

How\u2019s that for security?<\/p>\n\n\n\n

Secure Chip (secure element)<\/h3>\n\n\n\n

Ledger\u2019s secure element is a step up in terms of security. A secure chip is the same technology that\u2019s found in your passport, credit cards, and SIM cards. Its sole function is to protect highly sensitive information from being accessed by people with malicious intent.<\/p>\n\n\n\n

BOLOS Operating System<\/h3>\n\n\n\n

Ledger\u2019s very own BOLOS operating system is unique to their devices. Similar to more familiar operating systems like Windows and Mac OS, BOLOS enables Ledger wallets to install applications that are isolated from each other. Furthermore, it also ensures your 24-word secret phrase remains isolated from the applications on the device.<\/p>\n\n\n\n

\"As
Ledger’s BOLOS OS (Source<\/a>)<\/figcaption><\/figure>\n\n\n\n

As shown in the image above, applications can\u2019t interact with each other. Instead, they communicate directly with BOLOS. This keeps malicious users and developers away from your private info.<\/p>\n\n\n\n

With that, third parties can still develop applications for Ledger devices. Of course, there\u2019s still a process in place<\/a> for being accepted as an official app on Ledger Live.<\/p>\n\n\n\n

How to Know if Your Ledger Wallet Is Compromised<\/h2>\n\n\n\n

Even though it’s apparent that Ledger provides the safest NFT wallet<\/a> on the market, it\u2019s still possible that your wallet could be compromised. Below are a few steps to check that your wallet isn\u2019t compromised.<\/p>\n\n\n\n

\"Below
Check if your Ledger wallet is compromised<\/figcaption><\/figure>\n\n\n\n

1. Know where your device came from<\/h3>\n\n\n\n

The first step is to confirm that you ordered your device directly from Ledger<\/a>. Ordering your wallet from resellers such as Amazon, eBay, or from friends on the internet is a bad idea as your device could arrive compromised.<\/p>\n\n\n\n

2. Verify the box contents<\/h3>\n\n\n\n

Every Ledger box should contain the proper contents. If an item is missing, this should be a major red flag that your wallet may have been accessed by someone else. The box contents are as follows:<\/p>\n\n\n\n