once you sign your transaction using your hardware wallet, the signed transaction needs to be sent over to a internet connected device like a desktop or mobile phone wallet app to broadcast your transaction to the blockchain. Now if your hardware wallet has a malicious code, it can encrypt your seed phrase in your signed transaction data. Wondering what are ways this can be prevented?
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Simply: don't use hardware wallets. Are just fancy garbage, selling a false idea of security to clueless people or insecure or tech illiterate.
THINK LIKE A BANK
The vault is a hardware wallet
Multi-vendor multisig?
I use casa for multi signature