Crypto hardware wallet owners face fresh security risks after recent spate of personal data thefts
The hacks at shipping companies used to mail out hardware wallets puts crypto owners at greater risk of real-world attacks.
Recent data breaches at shipping companies have put cryptocurrency owners with physical hardware wallets at greater risk of having their funds stolen. The breaches exposed personal data, including names, addresses, email addresses, and phone numbers, of thousands of Trezor and SafePal customers. These shipping companies used this information to mail out hardware wallets to customers.
While the breaches did not compromise the security of the wallets, the theft of personal information leaves crypto owners vulnerable to physical attacks. These attacks, known as wrench attacks, involve forcibly obtaining the seed phrase stored on the wallet and can lead to irreversible loss of funds. Wrench attacks have surged in 2025, with a 75% increase compared to the previous year, resulting in losses of up to $40 million.
Crypto forensics firm Chainalysis estimates losses of $30 million so far this year, with criminals employing tactics like kidnapping and home invasions to obtain seed phrases. Trezor and SafePal have advised customers to remain vigilant against phishing attacks, which involve sending targeted messages to steal crypto. In a separate incident, hackers stole over $130 million from a hardware wallet by predicting seed phrases generated offline by Coinkite's Coldcard hardware wallet.
Despite the wallets remaining offline, the hackers were able to generate customer wallet passwords and withdraw funds directly from the blockchain. One victim admitted that despite following all security measures, their funds were lost due to a 2021 coding vulnerability in the hardware wallet.
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