This attack vector is new (thought predictable) for bitcoin, but it is not the first time that something similar happens... with deadly consequences:
https://en.wikipedia.org/wiki/2024_Lebanon_electronic_device_attacksOne of the weakest points of hardware wallets is that they are single purpose devices, linked to bitcoin owners thus, prone to be targeted. The risk/benefit ratio of tampering such devices is positive for the attacker.
Besides the risk of tampering, single purpose hardware wallets are visually identifiable. As long as the device is seen (or screened by some X-Ray scanner running some AI model), the owner is linked with bitcoin, the plausible deniability becomes difficult and the exposure to the $5 wrench attack increases.
I have developed a project that turns a toy, a Nintendo DSi, into a PSBT signer leveraging the
@SeedSigner 's source code. Its main security model is to go unnoticed embedding a bitcoin signing system within a device for a completely different purpose.
Check its repo:
https://github.com/ndssigner/nds-signerVideo demo:
https://odysee.com/@ndssigner:9/nds-signer-demo:2