Phishing scams continue to be a significant threat in the cryptocurrency industry, with scammers constantly finding new ways to deceive users and steal their funds. The latest warning comes from Jameson Lopp, co-founder of CasaHODL, who highlighted a new phishing scam targeting Gemini users.
The scammers behind this phishing scam are using a clever ruse involving a fake data breach notice to trick unsuspecting users. They claim that Gemini is partnering with Trust Wallet to protect users’ funds after a supposed security breach compromised multiple wallets on their servers. The scammers then urge users to transfer their funds to a wallet controlled by a provided seed phrase under the false pretense of securing their funds.
Yu Xian, founder of SlowMist, emphasized that phishing scams involving mnemonic phrases are nothing new in the crypto space. These scams are often low-cost to execute, using leaked data from the dark web to target vulnerable users. Experts warn that individuals who rely on third-party custody services are particularly at risk and need to stay vigilant against such threats.
Combatting the Scam
Psifour, a developer for Taproot Wizard, suggested that raising awareness about the scam could help prevent newcomers from falling victim. By educating users about the tactics used by scammers, the industry can empower individuals to protect themselves and their funds. Gemini has acknowledged the phishing attempt and issued a warning to users to remain cautious.
The extent of the damage caused by phishing scams is staggering, with reports indicating that in August alone, crypto phishing scams resulted in $63 million in losses for over 9,000 victims. Despite a decrease in the number of victims, there was a 215% increase in stolen funds, highlighting the growing sophistication of these attacks. This underscores the urgent need for enhanced security measures and heightened user awareness to combat the rising threat of phishing scams in the cryptocurrency industry.