Your home is under attack: A new threat where smart devices steal cryptocurrencies

When you wake up, the vacuum cleaner starts moving on its own, the refrigerator displays a ransom message, and all your Bitcoin and bank account funds have disappeared—this is not a Stephen King horror movie, but the reality happening right now.

Hackers can leverage your smart home devices to steal cryptocurrency wallets and recovery phrases. With IoT devices worldwide reaching 18.8 billion and approximately 820,000 attacks occurring daily, this threat is no longer just fiction.

Your Home is Already a Hacker’s Target

The average American household owns 21 smart devices, but one-third of users have experienced data leaks or fraud within the past 12 months.

Tao Pan, a researcher at blockchain security firm Beosin, points out: “IoT devices with poor security, especially routers, serve as entry points for hackers to infiltrate home networks. Once inside, attackers can move laterally to access all connected devices, including computers and smartphones used for crypto transactions.”

The most vulnerable users are those conducting cryptocurrency trades via APIs. Hackers can capture login credentials and gain direct access to wallets.

Nightmare Starting with a Coffee Maker

In 2019, cybersecurity researcher Martin Hron from Avast conducted an experiment to hack his smart coffee maker.

Most smart devices lack password protection by default and only connect to WiFi. Hron replaced the firmware of his coffee maker and displayed a ransom message. The device was locked and unusable without payment.

But this isn’t just harassment. Similar techniques could overheat the heater to cause fires or spray boiling water to threaten victims. Even more frightening, the coffee maker can serve as a stealthy entry point into your entire home network, allowing hackers to monitor your bank account info, emails, and crypto recovery phrases.

Real Hacking Incidents

10GB of Data Stolen from a Vegas Casino Aquarium

In 2017, hackers used a connected aquarium in a Las Vegas casino lobby as an entry point. They infiltrated the network via temperature controls and sensors, then transmitted 10GB of data to a remote server in Finland. Despite firewalls and antivirus software, the attack succeeded.

Cryptocurrency Mining via Door Sensor

In 2020, cybersecurity firm Darktrace discovered covert crypto mining on a biometric access server. Hackers downloaded malicious executable files onto the server, mining Monero (XMR) using the private token.

Such “cryptojacking” attacks are increasing. Microsoft’s threat intelligence team confirmed that hackers are conducting brute-force attacks on Linux systems and smart devices, installing backdoors and then running mining malware. This not only spikes electricity bills but also funnels all mining profits directly into hackers’ wallets.

Vacuum Cleaner Monitoring Your Home

Last year, a serious security vulnerability was found in Chinese-made Ecovacs vacuum cleaners in the US. Hackers could remotely control these devices and peek into your home with the built-in camera. Everything you do—entering passwords or writing recovery phrases—could be recorded.

Potential to Shut Down Entire Power Grids

An even more terrifying scenario involves hackers controlling 210,000 high-power-consuming devices (like air conditioners). According to Princeton University security researchers, simultaneous manipulation could overload specific power lines, potentially causing blackouts for about 38 million people in California.

Practical Measures to Protect Your Crypto Assets

Complete Isolation

Pro hacker Joe Grand recommends avoiding the use of smart devices altogether. “I am very cautious with my smartphone, limiting it to navigation and communication with family. I will never introduce smart devices into my home.”

Basic Security Measures

Set strong, unique passwords on all smart devices instead of relying on default settings.

Network Segmentation

Use separate guest networks for IoT devices that don’t need to share your main computer or smartphone network. Disconnect devices when not in use and keep software always up to date.

Your home may already be a target for hackers. Review your device settings now and start preparing to safeguard your crypto assets.