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Supply Chain Attack
All key storage software depends on some hardware to run, whether that be a phone, laptop, server, or hardware wallet. There are multiple places where malicious code or hardware can be inserted into the supply chain. Fake hardware wallets have been spotted in the wild. Earlier in the supply chain, malicious chips or even tainted firmware can be inserted by someone who has access. Keep in mind the attacker might not be the creator of the hardware wallet. The attacker could be a manufacturing partner or a single rogue employee.
- Always check authenticity of hardware and integrity of tamper-proof seals.
- Do not use only one brand of hardware wallet or software system. Use a mix.
- Use a multi-signature (multi-key) system that will enable recovery even if one of your hardware wallet types is compromised by an attacker or found to have a flaw/bug.