Phantom Wallet Hack: How to Protect Your Funds

What can I do if my Phantom Wallet got hacked? 

Remember, cryptocurrency transactions are irreversible. That means once your funds are gone, they’re likely gone for good. 

Your best course of action is to report the stolen funds to the FBI’s Internet Crime Complaint Center. In some cases, the stolen cryptocurrency may be frozen and returned to you. 

By taking action immediately, you can limit further theft: 

• Disconnect from the internet and all connected devices: This can potentially prevent any ongoing malicious activity. 
• Move your assets to a new wallet: On a separate device, set up a fresh, secure wallet to transfer your remaining funds.
• Protect Your Seed Phrase: Write down your seed phrase on a piece of paper and store it somewhere secure—don’t leave it on your phone or in digital storage.

The clock is ticking, so act quickly to limit your exposure and protect the digital assets you still have. 

How did my Phantom wallet get hacked? 

Let’s walk through some causes causes of wallet hacks: 

• Connecting to malicious sites or DApps: Scammers often disguise malicious apps as legitimate websites. 
• Storing the seed phrase insecurely: Remember, your seed phrase can be used to access your cryptocurrency wallet. Storing it in an insecure place — like the notes app on your laptop — could potentially lead to a hack. 
• Phishing attacks: Scammers use phishing to steal your private keys. They may send you an email or a Discord message pretending to be a Phantom Wallet employee. 

Real-life Example: In February 2025, Phantom Wallet users were targeted by a sophisticated phishing scam. A hacker deployed pop-ups as legitimate Phantom wallet updates. 

Remember, you should always be vigilant when interacting with emails, messages, websites, and applications. 

Is Phantom Wallet safe? 

Phantom Wallet is considered a safe and trusted wallet. Let’s walk through some of the safety features that Phantom Wallet offers: 

• Scam detection system: Phantom can automatically identify and block certain malicious transactions. 
• Open-source blocklist: Phantom has a community-created blocklist to protect you from unsafe applications. 
• Privacy-focused design: Phantom was designed with privacy in mind and doesn’t track your personal information.
• Code audits by Kudelski Security: Phantom Wallet is regularly audited by a third-party to stay ahead of vulnerabilities. 

Despite these features, no wallet is 100% secure. It’s important to stay proactive to protect yourself from potential attacks.

How to prevent Phantom Wallet hacks 

Let’s walk through some simple steps you can take to prevent wallet hacks: 

• Double-check URLs: Before connecting to any site or DApp, make sure you have the right URL. Scammers will often use fake URLs to steal private keys. 
• Secure your seed phrase: Write down your seed phrase and store it somewhere safe, away from digital access.
• Use hardware wallets for large sums: A hardware wallet like Ledger is the safest option for storing significant amounts of crypto. Ledger can integrate with your Phantom Wallet and store your private keys offline — protecting you from online attacks. 
• Beware of phishing attempts: Don’t click on suspicious links or respond to unsolicited messages.
• Download security software: Anti-malware software like Malwarebytes can block online threats. 

Can I write off hacked cryptocurrency on my taxes? 

Unfortunately, it’s unlikely that you can write off digital assets lost in a hack on your tax return. After the 2017 Tax Cuts & Jobs Act, stolen cryptocurrency is no longer tax deductible. 

Conclusion

While Phantom Wallet offers strong safety features, no wallet is completely safe from hackers. By taking the right steps to protect your cryptocurrency, you can significantly reduce the risk of online attacks.