Crypto hardware wallet Trezor creator SatoshiLabs has recently issued a warning encouraging customers to only purchase its products from Trezor Shop, Amazon, or legitimate distributors.
While a handful of clones and imitations have increasingly emerged since the company’s product launch, Trezor has recently “discovered something more startling,” as an unknown party has now produced a “one to one” copy of the Trezor One hardware.
As the company stated:
“While Trezor clones are marketed under a different name, manufactured by (legitimate) legal companies, allowing you to distinguish them from the original, a fake Trezor tries to replicate the original to the bone.”
The newly launched counterfeit Trezor device sports the company’s brand along with many of the original hardware’s superficial security features. According to Trezor, the first hallmark of a fake hardware wallet device is its markedly cheap selling price.
As SatoshiLabs further warned, such cheaper devices are unsuitable storage for digital assets as it does not provide the same level of security as the original. On that note, SatoshiLabs discourages customers from trusting a company that has “cheated” from the beginning by offering a counterfeit product.
In response to the now-circulating product replica, Trezor is urging consumers to notify the company of such fake devices, as Trezor takes a legal course of action to mitigate the distribution and production of these counterfeit products.
To ensure the authenticity of a Trezor device, buyers should check the purchased product’s holographic seal, the company added. Furthermore, SatoshiLabs also advised customers against purchasing from Taobao, AliExpress, eBay, and anonymous Amazon resellers.
Given the significant traction that the hardware wallet market has been gaining over the last year, worth approximately $95 million in 2017, which is expected to further grow to over $391 million by 2023, the emergence of counterfeit products comes as no surprise. On top of the proliferation of product imitations, there has also been an increasing number of crypto hacking incidents involving hardware wallets where hackers either breach the device’s software or hardware to rob digital assets.
Despite the aforementioned threats, cold storage is still generally viewed as a more secure method of storing digital assets compared to online wallets. As it stands, Trezor and Ledger are at the forefront of this growing market, but there are still other alternatives, including the Parity Signer mobile app.