Monday, June 24, 2019

Cryptocurrency Hardware Wallet Used by People in UAE Encounters Security Issues

Beam Wallet, a hardware wallet for storing cryptocurrencies experienced a “critical vulnerability”. This was announced on the tech company’s Twitter account on January 9, and users of the application were directed to uninstall and download a newer version. It is believed that hackers had compromised the previous version of the app after detecting its weakness.

Application Used By Over 750,000 Faces Security Risks

Beam Wallet on its website claims to be an application that is used by over 750,000 people in UAE for accessing goods and services directly from their phones. However, its developers, Mimblewimble decided to add a feature that will enable cryptocurrency transactions to be carried out. As per a report, this did not go down well given the turn out of events.

This can be attributed to the fact that days after the launch of the new feature, BeamPrivacy, the company’s Twitter handle tweeted that: “Critical Vulnerability was found in Beam Wallet today.” They further stated that the bug was not detected by an outsider, but the company’s development team.

Secret Keys, Passwords and Funds Were Uncompromised

A few minutes later, another message was posted to clarify that secret keys, passwords, as well as the data stored in these wallets, were unaffected. As such, there was no need to delete the database and other wallets. However, the team called for an immediate course of action to ensure its clients are protected.

One of such is the discontinuation of the use of previous versions of the apps. These applications were to be deleted on all machines and specifically, Desktop and CLI devices. The team added that a newer version was to be downloaded only from the company’s official website.

TrezorOne Also Gets Hacked

Reports have also revealed that this is not the first instance of a hardware wallet vulnerability. A similar event, was when a team announced that they had maliciously gained access to some wallets. These were Trezor One, Ledger Blue wallets, and Ledger Nano S. In the case of Trezor One, hardware wallets which did not have a passphrase had their private keys extracted.

BTCNN on January 10 outlined the various  Bitcoin wallets that can be used to safely store digital assets. These are wallets that can be used to store funds anonymously, and they still do a great job at safeguarding its stored funds. Notable among them are Jax, Samourai and Electrum Wallets.

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