Nearly 40 years ago, an animated film came out called The Brave Little Toaster.
You may remember it. It was about a toaster that came to life, along with other household appliances, and went on a journey to find their missing owner. It was a fun kid’s movie.
I’m not just bringing it up out of nostalgia, either. Right now, in a very real way, virtually every household appliance has more processing power and greater bandwidth than Apollo 11 took to the moon. Today we’re hoping our crypto investments can take us “to the moon.”
But today’s moon mission faces challenges the Apollo 11 astronauts could never have imagined…
The crazy world of IoT
Many newer appliances are part of the Internet of Things (IoT), meaning they’re connected to the internet and can communicate directly with other devices.
Now, that has real conveniences! You can use your phone to check your home security system while you’re on vacation. Your Roomba can download operating system upgrades on its own. Admittedly, these features aren’t for everyone – but for those of us who love them, they’re great.
Here’s the thing: IoT devices have, built into every single one of them, a very real risk. Every connected device is like another door into your home. If you don’t remember to lock them, burglars can break in.
A smart refrigerator, a Nest thermostat or an Alexa device is a digital door. Kicking it down lets hackers access your entire network.
Stealing the keys to your digital doorways
Here’s where things get really dicey…
Now, I’m a bit of a coffee snob. I have a WiFi-enabled “smart” coffee maker that grinds and brews (and reorders fresh beans when supplies get low). I can use an app on my phone to start a fresh pot anytime (fresh coffee tastes the best, doesn’t it?)
Fortunately, before setting it up, I read the instruction manual. Like many IoT devices, my coffee maker connects directly to my WiFi and didn’t have a password set up. Most people don’t read the instructions – and just won’t set up a password at all. That leaves any IoT device wide open to hackers.
This is not a theoretical risk. For example, in 2019, Avast researcher Martin Hron hacked his own smart coffee maker to prove the point.
Felix Ng with Cointelegraph continues the story:
“I’m able to do whatever I want because I am able to replace the firmware… And I can replace it with whatever I want. I can add functionality, remove functionality and overcome security measures that are built in. So, I can do anything.”
In his example, Hron displayed a ransom note that bricked the device unless payment was made. Here, he discusses the episode:
Listen, that’s amateur stuff.
Any serious hacker could just as easily use an unsecured device as a silent gateway to your network. Spying on emails. Collecting usernames and passwords for your bank and brokerage accounts. Even swiping your crypto seed phrases.
Before we continue, I want to give you some numbers:
- As of 2023, the average U.S. household had 21 devices connected to the internet
- One-third of smart home device owners reporting being the victim of a data breach or scam during the prior 12 months
Clearly, this issue is far from uncommon!
Think about that. Your smart TV, digital doorbell, programmable thermostat, Roomba or Alexa could be hacked to steal your personal and financial information. Or worse, clean out your crypto wallet.
Your digital wealth, gone in an instant.
Hackers especially love targeting crypto because it’s the perfect prize. Once stolen, it’s nearly impossible to trace and absolutely impossible to reverse. Unlike a bank transfer, there’s no fraud department to call. There’s no “dispute this transaction” or “chargeback” button to press. Often, there’s not even a customer service department to assist you.
With a single compromised seed phrase, a thief can drain your wallet and vanish into the blockchain. Leaving you with no recourse and no way to claw it back.
That’s why unsecured networks and smart appliances are such a target for cybercriminals. And how they can turn the dream of a fresh pot of coffee, anytime I want it! Into a nightmare for crypto owners.
Here’s the thing that worries me. The same people who own crypto (like me) tend to be the same kinds of people who are early adopters of cutting-edge technologies. In other words, the more likely you are to own cryptocurrencies, the more likely you are to be at risk for exactly this sort of crime.
But we don’t have to be victims (I mean, fresh coffee on command isn’t worth my crypto!)
Here’s what you can do
The good news is you can take steps to protect yourself.
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- Always password-protect every single IoT/smart device in your home
- Never use the same password for different devices or services
- Yes, it’s an inconvenience to keep track of 100+ different logins, so use a digital password manager (personally I prefer BitWarden, but there are lots of password managers available, many free)
- Use a partitioned guest network for smart devices to separate from your primary, everyday network
- Keep firmware and apps updated – turn on auto-update when available
And if you’re a crypto owner like me, you need even stronger security. Let’s face it – when it comes to investing, there’s no risk-free reward. But if we aren’t careful, we can all too easily expose ourselves to reward-free risk.
That’s where BitIRA comes in. While home networks, smart devices and even hot wallets are notoriously vulnerable to hacking, BitIRA uses next-level solutions to secure your digital assets. Multi-signature authorization, enterprise-level security (and end-to-end insurance coverage, too) are why BitIRA is known as “The World’s Most Secure Digital Currency IRA.”
We built BitIRA to be a Digital IRA service both secure and reliable enough that we could recommend it to our friends and families. That we could use it for our own investments and still sleep soundly at night. I think we’ve succeeded.
Find out more about BitIRA’s industry-leading security protocols to protect your digital assets. And if you want to keep your crypto insulated from diabolical doorbells and criminal coffeepots, well, it’s easy to get started (takes less than 10 minutes). Or learn more about the benefits of diversifying with cryptocurrencies here.
