Scams within the crypto landscape are evolving with staggering complexity. Recently, Ripple Chief Technology Officer David Schwartz revealed how phishing attacks have also been carried out against unsuspecting Coinbase users – the largest cryptocurrency exchange. It’s a biting reminder of the dangers that lurk in the digital space, and even the most seasoned professionals can be fooled by daring fraudsters.
Ripple CTO Reveals Latest Scam
Schwartz took to social media to reveal all the details of the scam message he received, the sender of which claimed to be a representative of Coinbase. The scammers falsely posed as members of the asset protection department and told him that his account was under investigation.
It started with a phone call and an email with the case ID and the representative’s name. To deceive, they give a false image of legality.
Today another elaborate scam attempt using both text and email. This is a scam. Don’t fall for it. pic.twitter.com/Bb7EVDhIOb
— David “JoelKatz” Schwartz (@JoelKatz) October 4, 2024
However, it was from an unofficial domain. That’s a clear signal of something suspicious. Many victims tend to ignore this piece of information when things are at their most intense during the attack, despite the warning sign. Schwartz’s story typifies how fraudsters use social engineering tactics to gain trust and siphon sensitive information from unsuspecting individuals.
A growing concern in crypto
This incident is not an isolated incident. Moreover, Jacob Canfield, a prominent crypto trader, recently announced his unfortunate encounter with a similar fraud. He received a text message alerting him to changes to his account’s two-factor authentication settings.
He then received calls from individuals claiming to be Coinbase support staff. They even went so far as to send him an email that appeared to come from Coinbase’s official address, further complicating the situation. Canfield’s experience shows how these schemes can ensnare even the most vigilant users.
By refusing to provide verification codes when asked, he successfully dodged the scam. Nevertheless, a significant number of individuals have not been so lucky; Reports indicate that up to 30 people have already lost significant sums of money as a result of this particular fraud.
Top goals
With 38% of all brand phishing attacks in the first quarter of 2024, Microsoft was the most frequently targeted brand. Google came next with 11% more of the same type of attacks. Cybercriminals have tricked users into revealing private information, such as login credentials, by sending emails that appear authentic.
These emails have caused problems for consumers because they tend to sound like formal letters, and these are confusing for a consumer to determine between real and fake letters. According to a recent study, malicious emails have increased by 341% this year alone.
One of the largest European retailers, Pepco Group, was attacked by phishing scammers worth approximately €15.5 million in February 2024. Fraudsters forged valid employee emails to trick finance staff into transferring money.
Featured image from Pexels, chart from TradingView