Ledger Nano wallet is the latest version of the Ledger hardware wallet. Ledger wallets are (cold wallet)hardware cryptocurrency wallets made by Ledger, the company headquartered is in Paris, France. Ledger was launched in 2014 by eight experts who had professional backgrounds in embedded security, cryptocurrencies, and entrepreneurship. Ledger is more like a combination of Cold Wallet and Hot Wallet
A cryptocurrency wallet is essentially used to:
- Store your private keys (again, not the actual cryptocurrency itself).
- Prove to the blockchain that you own the cryptocurrency, by cryptographically signing transactions with your private keys.
- Broadcast transactions on your behalf to the blockchain.
This is why having a secure cryptocurrency wallet is so vital to the safety of your digital assets. It all comes down to how easy it is to access and steal private key information from the place you have it stored.
How Ledger Wallet work
Ledger’s hardware wallets are multicurrency wallets that are used for offline storage of cryptocurrency private keys. You need your cryptographic private keys to conduct transactions using cryptocurrency, these keys are generally stored online, however, this makes them susceptible to hacks and theft. Cryptocurrency users have developed an alternative systems for storage, these include mobile wallets, paper wallets, and hardware wallets (cold wallets).
Hardware wallets are a form of offline storage. A hardware wallet is a cryptocurrency wallet that stores the user’s private keys (a critical piece of information used to authorize outgoing transactions on the blockchain network) in a secure hardware device. Writing your private key on a piece of paper is a form of cold wallet storage just as hardware wallets are, just more sophisticated.
Ledger’s hardware wallets are device-based, which means they use storage mechanisms—USB drives—to store private keys, thereby making it difficult for hackers to access the key from an online location. Other examples of hardware wallets include Trezor Wallet, Ledger Wallet, CoolWallet Pro, KeepKey and many more.
Hardware wallets like Ledger wallet are known for their strong security system compared to a hot wallet this doesn’t mean that hardware wallets can’t also be compromised. One of the methods used by scammers to gain access to users’ private keys is by sending fake hardware wallets to victims.
How Hardware wallets (Cold Wallet) are hacked
- Fake Hardware Wallet: A fake hardware wallet is a form of hacking that you need to be aware of. Typically, hackers target individuals who are using any type of hardware wallet already, might be Ledger, Trezor and others and convince them to use a modified wallet sent to them.
In the first part of the scheme, the target is sent a package by the scammer with the modified hardware wallet. The package usually includes a note warning the target that their current device is vulnerable or outdated and needs to be replaced with the delivered wallet.
The shipped replacement usually comes with instructions telling the user to plug in the device to a computer and input their crypto wallet recovery key. Once the keys are entered, they are recorded and sent to the hackers, who are then able to unlock the wallet on the blockchain. Accessing the wallet allows them to siphon funds.
It’s important to note that there are no hardware wallet providers that will ask customers for their recovery keys. Moreover, they never ship replacements to customers unless you explicitly ask for one.
- Phishing Scams – Many scammers attempt to trick users into giving them the private keys to their wallets. Ledger, a hardware wallet manufacturer, has a section on their website where they track this kind of activity concerning their devices.
- The $5 Wrench Attack – This sort of threat has to do with someone using physical force to attempt to take control of your crypto.
How to recover funds lost to compromised ledger wallet
Your best option when your wallet is hacked is to hire a private investigator for yourself in the form of a hacker. A hacker can help you go through the software algorithm of the wallet or trace transactions related to your wallet on the blockchain to retrieve both your account and your cryptocurrency in case it has been transferred to another wallet. As stated earlier the hacker will advise you to buy a new hardware wallet from a trusted and verified cold wallet provider to receive your recovered cryptocurrency.
You can find hackers on Recoveries Pro, a platform that investigates frauds and helps victims recover lost funds. With over 8 years of experience and over 3000 successful recovery cases, Recoveries Pro is beaming with hackers with enough expertise to trace and recover your cryptocurrencies.
Recovery Pro specializes in dealing with online scams and help provide reimbursement to the victims using disputes, tracking down digital fingerprints, cyber analysis, and thorough investigative and recovery work.