Yes, hardware wallets can be hacked through physical tampering, but it is very difficult and usually requires specialized knowledge, tools, and access to the device for an extended period. Here’s how it can happen:
1. Supply Chain Attacks
- A malicious actor could modify a hardware wallet before it reaches the user, installing backdoors or replacing firmware.
- Buying only from official sources helps mitigate this risk.
2. Firmware Manipulation
- Some older or poorly secured hardware wallets may have firmware vulnerabilities that hackers exploit.
- A malicious update (if installed) can steal private keys.
3. Side-Channel Attacks
- Attackers use methods like power analysis, electromagnetic leaks, or timing analysis to infer secret keys.
- Some hardware wallets have defenses against this, such as randomizing cryptographic operations.
4. Evil Maid Attacks
- If an attacker gains physical access to a device (e.g., in a hotel or unattended office), they could:
- Install hidden keyloggers.
- Extract private keys if the hardware wallet is not well-protected.
- Mitigation: Use a strong PIN and a passphrase (BIP39) feature.
5. Chip-Level Extraction
- Skilled hackers can use laser decapsulation or fault injection to extract sensitive data from the chip.
- This is very expensive and typically used against high-value targets.
How to Protect Against Physical Tampering?
✔️ Buy only from official sources.
✔️ Check for signs of tampering (broken seals, unusual packaging).
✔️ Use a strong PIN and passphrase (this prevents key extraction).
✔️ Enable a self-destruct feature (if available) to wipe data after multiple failed attempts.
✔️ Store your device securely (e.g., in a safe or hidden location).
Final Verdict
While hardware wallets are among the most secure ways to store crypto, no device is 100% hack-proof. The best defense is layered security: strong passwords, a secure storage location, and vigilance against supply chain attacks.
Read : How do multi-signature wallets prevent single points of failure?