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Over $18,000 In Crypto Missing In Repair Store Mishap

"I knew the transactions were public on the blockchain, there’s no way I could have made them as I only keep my crypto stuff on mobile”

Taking your new iPhone to the store for a routine screen repair should be a painless routine procedure. Gavin from London, UK was shocked to find £15,000 ($18,000 USD) in BNB missing from his Trust Wallet after receiving his device back from a third-party repair store.

“When I looked at my balance I was shocked” Gavin told Crypto Magazine “I knew the transactions were public on the blockchain, there’s no way I could have made them as I only keep my crypto stuff on mobile”

Gavin revealed to Crypto Magazine that he had made a mistake all too common among new crypto investors; when recording his seed phrase, he had simply screenshot the phrase onto his phone.

“I assumed it was secure, but they must have looked through my photos and taken the phrase from there”

Once your seed phrase is out, there’s little that can be done in terms of security outside of generating a new wallet and attempting to transfer any tokens that haven’t already been seized by the attacker.

Crypto Stored On Mobile Devices Is Inherently Vulnerable 

This report follows growing concerns with closed-source third-party cryptocurrency wallets gaining traction amongst blockchain beginners. Without the ability to review the source code of any asset storing application, it’s difficult for the development community to identify possibly malicious code. These problems are compounded by the relative inexperience of beginners getting into the space with blockchain-specific learning resources often seeing poor engagement relative to the total user base.

Where wallets can be a concern, the most common issues are caused by human error. The improper handling of seed-phrases can result in the tragic loss of hard-earned savings and long-term investments can easily be drained when poor operational security is at play.

Gavin is following up with Action Fraud and his local Police however as we’ve often seen in cases of crypto mishaps, governmental authorities seem to have a distinct lack of training when it comes to anything blockchain.

“I spend about four hours at the station trying to explain to them but it’s like I had to give them an entire lesson on what crypto is. It was a f**ng nightmare mate”

It’s important to remember that storing crypto assets on mobile devices has its own inherent risks. At Crypto Magazine we recommend the use of ‘cold storage’, keeping your primary funds locked in a wallet that rarely sees day-to-day use, and only transferring small amounts to or from it from your ‘hot wallet’.

A Hot Wallet / Cold Wallet Breakdown

For more information on wallet security, check out this fantastic article by investopedia.