Counterfeit Ledger wallets pose major crypto theft risk

Counterfeit Ledger Nano S Plus wallets sold online mimic real devices but contain malicious hardware and firmware, stealing users' crypto. Experts urge buying only from official sources.

Recent investigations have revealed a sophisticated scheme distributing counterfeit Ledger Nano S Plus hardware wallets through online marketplaces, particularly those based in China. These fake devices are nearly indistinguishable from genuine products in both appearance and packaging, and are often sold at official retail prices. Despite their convincing look, the counterfeit wallets contain modified internal components, such as ESP32 microcontrollers, unauthorized WiFi and Bluetooth modules, and tampered firmware. These alterations enable attackers to capture sensitive information like seed phrases and PINs, which are then transmitted to servers under their control, resulting in the theft of users' cryptocurrency. Attackers also include deceptive QR codes in the packaging, directing victims to malicious apps, including fake versions of Ledger Live, further compromising wallet security. Security experts emphasize that genuine hardware wallets never come with pre-written seed phrases and should always be initialized by the user. These incidents highlight the dangers of purchasing hardware wallets from unauthorized sources and the importance of verifying device authenticity through official channels.