During one of the worst crypto winters, hackers and scammers have made good use of crypto phishing to defraud investors. When it comes to crypto-related cyberattacks, it appears that bad actors have shifted their focus from traditional financial threats such as banking PC and mobile malware to phishing.
In 2022, the Russian cybersecurity and anti-virus company Kaspersky reported a 40 percent increase in crypto phishing attacks compared to the previous year. The company identified 5,040,520 crypto-phishing attacks in contrast to 3,596,444 in 2021.
What is crypto phishing?
Crypto phishing refers to a type of cyber attack where scammers use deceptive methods to trick individuals into revealing their sensitive information, such as private keys, seed phrases, or login credentials. This is with the aim of gaining unauthorized access to their cryptocurrency wallets or accounts.
The term “phishing” is derived from the concept of “fishing,” where attackers cast a wide net and wait for victims to take the bait.
Crypto phishing attacks often occur through fraudulent emails, messages, or websites that are designed to look like legitimate ones. For example, scammers may send emails that appear to be from a popular crypto exchange or wallet provider, asking users to click on a link and provide their personal information.
Once users fall for the phishing attempt and disclose their sensitive information, the scammers can use that information to steal the victims’ crypto or gain unauthorized access to their accounts. Crypto phishing attacks can be financially devastating, as victims may lose their entire crypto holdings, and it can also result in identity theft and other cyber security risks.
Crypto phishing cases surge amid the crypto winter
The crypto winter of 2022 was the worst in the history of decentralized finance. To stay afloat in the market, crypto investors looked for fresh investment opportunities. However, according to Kaspersky, these investors faced crypto phishing attacks year-round.
Although Kaspersky was unable to predict whether the trend would increase in 2023, phishing attacks continue to gain ground in 2023. Trezor, a provider of hardware crypto wallets, issued a warning in March against attempts to steal users’ cryptocurrencies by duping investors into entering their recovery phrase on a fake Trezor website.
In a 2022 survey conducted by Kaspersky, one in seven respondents admitted to having fallen victim to crypto phishing. While most phishing attacks involve giveaway scams or fake wallet phishing pages, the strategies of attackers continue to evolve.
According to Kaspersky, “crypto remains a symbol of getting rich quickly with minimal effort,” which encourages scammers to invent new techniques and stories to deceive unwary crypto investors.
In addition, investors in Arbitrum were recently exposed to a phishing link via the company’s official Discord server. A hacker reportedly compromised one of Arbitrum’s developers’ Discord accounts, which was then used to distribute a fake announcement containing a phishing link.
How to thrive in an industry with increasing phishing attacks
As the popularity of decentralized finance (DeFi) grows, so does the risk of crypto phishing attacks. These attacks can cause the loss of your valuable cryptocurrencies and personal information. To thrive in the DeFi space while protecting yourself from phishing attacks, follow these essential steps:
1. Educate Yourself: Stay informed about the latest phishing tactics and techniques. Understand how phishing attacks work and the common red flags to look out for, such as suspicious URLs, unsolicited emails or messages, and requests for sensitive information.
2. Verify URLs and Websites: Always double-check the URLs of the websites you visit and make sure they are legitimate. Be wary of URLs that look similar to popular DeFi platforms but have slight variations or misspellings. Bookmark the official websites of DeFi platforms and use them to access the platforms instead of clicking on links from unknown sources.
3. Use Hardware Wallets: Hardware wallets provide an additional layer of security for your crypto. They are physical devices that store your private keys offline, making it harder for hackers to gain unauthorized access. Use a hardware wallet to securely store your crypto and avoid storing them on online platforms that are susceptible to phishing attacks.
4. Enable 2FA (Two-Factor Authentication): Two-factor authentication adds an extra layer of protection to your accounts. Enable 2FA wherever possible, using authenticator apps like Google Authenticator or hardware-based security keys. This helps prevent hackers from gaining access to your accounts even if they have your password.
5. Be Cautious of Unsolicited Communications: Be cautious of unsolicited emails, messages, or phone calls that request sensitive information or ask you to click on links. Avoid clicking on links or downloading attachments from unknown sources, and never provide your private keys, passwords, or other sensitive information to anyone unless you are absolutely sure of their legitimacy.
6. Report Suspicious Activities: If you suspect that you have fallen victim to a phishing attack or have received suspicious communications, report it to the relevant DeFi platform, as well as law enforcement agencies. Reporting such activities can help prevent others from falling victim to similar attacks.
By following these essential steps, you can thrive in the DeFi space while safeguarding your cryptocurrencies and personal information from phishing attacks. Stay vigilant, educate yourself, and prioritize security to protect your investments in the world of decentralized finance.
