Hardware wallet hacked? How people still lose their crypto

Can a hardware wallet be hacked?

A hardware wallet keeps your keys on the device itself. They never leave it, which makes theft from a distance far harder than with a wallet on your phone. Technical attacks on a device do exist, as in the Coldcard hack explained, but they are rare.

The weak spots usually sit outside the device. The main one is the recovery phrase: whoever has those words can open your wallet on any other device. The manufacturers are clear about this. Ledger says it will never ask for your recovery phrase (ledger.com), and Trezor says the same about its support team (trezor.io).

How do people still lose their crypto?

In practice Paucitas sees a few recurring warning signs. An email or letter “from the manufacturer” about a compulsory update. A recovery phrase that was once saved as a photo or a note. An app downloaded through an advert. Or a transaction on a website that you approved without seeing exactly what you were signing.

A sign like that can point to a leak, but it does not have to. Only the transactions on the blockchain show what really happened, and in what order.

Hardware wallet hacked, or something else?

Not always a hack. Sometimes a wallet looks empty while the crypto is simply still there, for example because the app is showing a different account or network from the one you expect. Sometimes it is a transaction you made yourself and forgot about. It could be yes, it could be no. That difference is exactly what you want to know before you take any further steps.

Rather not keep guessing? Let Paucitas take a look. Then you have clarity straight away instead of waiting and wondering.

Can Paucitas help you get back into your crypto?

That depends on your situation, and more is often possible than people expect. If you still have (part of) your recovery phrase or access details but can no longer get in, or cannot see your balance, Paucitas looks at whether recovery is technically possible. That is only for a wallet that is lawfully yours, and in some cases it is possible to regain access to your funds.

If the crypto really has been taken, Paucitas maps out where it went: through which addresses, to which platforms and when. That gives you something solid for whatever comes next. And sometimes the investigation shows it was never a hack at all. That is an answer that brings peace of mind too.

What should you do now?

It is sensible to stop using the old recovery phrase and not to reset the device to factory settings. Keep any messages, emails and websites from just before the loss, and then get in touch with Paucitas. The Paucitas report shows whether your crypto is still there, or where it has gone, and what the next steps are. If it was theft, that might be a report to the police: in England, Wales and Northern Ireland through Report Fraud, and in Scotland to Police Scotland on 101. The report is a strong attachment to that, because it sets everything out fully and clearly.

What Paucitas does for you

Paucitas works everything out: the transactions, the route the crypto took, the addresses and platforms involved, the messages you received and the timeline. To do so, Paucitas also reads through all the messages, emails, documents and other communication, so you get a complete picture of what happened and where all your crypto went, step by step. You get a report that anyone can follow and understand step by step, useful for a solicitor, an insurer or a police report. Paucitas does all of the tracing itself.

You send what you have: your public addresses, the transactions you do not recognise, and the messages or websites from around the time of the loss. If something is missing, Paucitas helps you find it. Every investigation is tailored: you receive a bespoke quote in advance that Paucitas goes through with you, with no surprises. The turnaround is anything from the same day to around two weeks.

Sources: Ledger, on the recovery phrase; Trezor, on phishing; NCSC, phishing scams; Report Fraud; Police Scotland, scams and frauds.