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How To Protect Yourself From Fraudulent Paper Wallet Generators Scam

Fraudulent Paper Wallet Generators Scam

 

A paper wallet is a type of bitcoin and cryptocurrency wallet that you generate through an open-source html page, and simply print out on a piece of paper.

The way scammers take advantage of this, is that they create their own version of a paper wallet generator, whereas they have access to every single paper wallet that you generate through their website.

They simply wait for a bitcoin deposit to the paper wallet’s address, and they either simply steal the money immediately, or sometimes they wait till the paper wallet holds a significant amount of bitcoin before they steal it.

Though we’re against using paper wallets in general due to the level of difficulty in creating an actual secure paper wallet, stick to the legitimate ones like bitaddress.org

 

Some Types  Fraudulent Paper Wallet Generators

  • Hardware Wallet Scams

A common misconception with hardware wallets is that when you’re using a hardware wallet, it’s going to be next to impossible for your funds to get stolen. But in fact, while reputable hardware wallets are secure, there are still some ways that scammers can steal your funds.

  • Fake Hardware Wallet Software

Hackers and scammers create almost exact duplicates of existing hardware wallet software like Ledger Live, and create their own methods in attempting to steal their victim’s funds.

The most common way being asking their victims to enter in their wallet’s 24 word mnemonic phrase, effectively gaining total access to their victim’s money.

  • Tampered Hardware Wallet Packages

While there is currently no proof of someone managing to successfully tamper with a Ledger hardware wallet, hackers and scammers can take advantage of someone’s lack of knowledge in how wallets work.

Sometimes the wallet buyer instead of generating his own set of 24 word mnemonic phrases on the hardware wallet itself, he/she followed the fraudulent instructions of the scammer. Whereas the scammer included a pre-generated list of 24-words, a wallet that the scammer has access to.

  • QR Code Generator Scams

It’s safe to assume that some people prefer using QR Codes rather than wallet addresses simply due to the fact that it’s quicker to do a QR Code scan using a mobile phone.

Due to this, some people resort to using “QR Code Generators” or “converters” to convert a wallet address to a usable QR Code.

How the scam works

-The victim opens the fraudulent bitcoin address to the QR code converter.

-The victim enters his/her wallet address.

-Instead of giving the victim the QR code of the wallet address he/she entered, the scammer instead displays a QR code of a different wallet address which the scammer owns

-The victim then unintentionally sends funds to the scammer thinking that he/she’s sending the funds to his/her own wallet.

How to protect yourself

Always double-check if the service you’re using is actually giving you the correct and legitimate QR code.