Cybersecurity firm Kaspersky has identified a new threat involving counterfeit hardware wallets designed to steal cryptocurrency funds. Attackers are distributing fake wallets with tampered components and pre-set recovery phrases, which leak seed phrases after setup. These counterfeit devices, including those mimicking Trezor wallets, turn the hardware itself into a vector for attack. Users are advised to be vigilant against wallets with pre-generated seeds, altered packaging, or unusual setup processes. To ensure security, it is recommended to purchase hardware wallets directly from manufacturers or authorized sellers, generate personal recovery phrases, and avoid using any pre-provided phrases.