Trying to keep your assets safe from “bad actors” is one of the main challenges that blockchain and cryptocurrencies face right now. This is why it is paramount, when dealing with cryptocurrencies, to learn and use the best tools to keep your funds safe.
Lately, the community has been experiencing an increasing amount of these “bad actors” who have been trying to scam some members of the Stellar Community, for this reason, I have created this blog where I lay out some tips and security tools you can have in mind.
As the community grows and more companies and individuals get aware of the network, there will be a small minority of people that will try to steal your Lumens. For example, a scammer might send you an e-mail spoofing SDF or a company that you trust, promising you a “stacking” or a “giveaway” offer. If you receive an e-mail asking for your secret key in order to claim lumens, it is certainly a scam. Remember that the SDF will never ask for your secret keys, always make sure to double-check the domain of the Email sender.
Another way is by sending you “stroops” or small amounts of lumens, with a link attached to the memo of the transaction. Spoofing community members have also been one of the ways bad actors try to steal your funds by sending you messages via Discord or Keybase. If you are using Discord, make sure to check the user's profile and check that the user sending you the message is the person they say they are.
There are also some tips you can have in mind if you are currently developing an application on Stellar. For example: make sure to use always SSL for Localhost development and make sure you use a password manager (like Lastpass). Using a hardware wallet is one of the best ways to keep your lumens safe, I recommend you to use Ledger, which is a really easy-to-use hardware wallet.
Custodial vs Non-Custodial Wallets
A Custodial wallet keeps your assets and sets measures to keep your assets safe. If you are a beginner in crypto, a Custodial Wallet will probably be the best option for you (For example: Binance,Coinbase,Kraken, etc).
If you are looking for a trusted and secure Custodial Wallet, then LOBSTR is the right wallet for your.
LOBSTR Vault
LOBSTR allows you to easily add security measures like multi-sig to your stellar account. They offer a mobile app that can be accessed from Google Play or from the Apple Store.
Freighter
If you care alot about security, it makes sense to securely manage your assets using a Non-Custodial wallet, this way you have absolute control over the private key, and hence, your assets.
Freighter is a non-custodial wallet developed by the Stellar Development Foundation. It works similar to the way Albedo works, and it allows you to perform operations on the network, without exposing your private keys. If you would like to learn more about Albedo, here you can find a link to my previous blog.
Freighter is a non-custodial wallet extension that enables you to sign Stellar transactions via your browser. It's a safer alternative to copying and pasting private keys for use with web applications.
StellarGuard
And lastly, StellarGuard provides a very easy to use Web platform where you can add security to your day-to-day transactions by adding multi-signature, and validation using an Authenticator App.
StellarGuard uses the Stellar's built in multi-signature technology to require a transaction to be signed both by you and by StellarGuard before it is considered valid.
Conclusion
I hope that you have enjoyed reading this blog post as much as I enjoyed writting it, and I hope it was helpful. Please keep in mind that this is not investment advise and if you have any question, please feel free to reach us on Discord or on Twitter.
Resources
[1] Stellar | Security Guide - How To Protect Yourself From Scammers: https://www.stellar.org/blog/stellar-security-guide-protect-scammers
[2] Albedo | a security-centric, developer-friendly, and easy-to-use delegated signer for Stellar Network From Scammers: https://stellar.expert/blog/introducing-albedo-delegated-signer
[3] Ledger | The original hardware wallet. Easily start your crypto journey: buy crypto, secure your assets and manage them in one single-app:https://ledger.com/
[4] freighter | A Stellar wallet for every website:https://www.freighter.app/
