The cryptocurrency world has tremendously become popular over the past few years. Many people have created personal wealth for themselves regardless of the place they live in since all these transactions are done online through various platforms that mostly use blockchain technology. 

Like other successful networks on the internet, scammers have noticed a ripe opportunity in cryptocurrency to enrich themselves. They have been using an old trick commonly known as phishing to get the investor’s details to access their digital assets. If you want to understand how phishing works in the crypto world, this article may help you. 

What is Phishing?

Suppose you are still wondering what is phishing. Phishing is an old internet trick where the scammer sends a message to trick a user into revealing personal details. In this case, the investor is misled to give their login details to their digital wallet. The attackers send an email with a malicious link or an attachment that directs the user to a website with a similar outlook to a known network.

How To Recognize Cryptocurrency Phishing

In most cases, phishing messages are hard to distinguish from genuine ones. This is because attackers create emails and fake websites similar to the original websites. However, there are other loopholes that you can use to recognize phishing attempts. They include: 

  • The messages include misspelt or suspicious URLs, while others use subdomains. 
  • Scammers use personal emails instead of corporate emails
  • Emails are written to create fear or urgency to act on the message immediately.
  • Most phishing messages request verification of personal details such as passwords or financial information. 
  • If you read the messages carefully, they include spelling and grammatical errors. 

Types of Phishing Scams in Cryptocurrency

Crypto Spear Phishing Attack

These types of attacks are usually directed at a specific company or individual. The scammers gather personal information concerning the user through various platforms such as social media. They create a message with details concerning the victim’s co-workers, their work projects, or their home address. 

So, when the victim receives such information on their email, they immediately assume it’s from a known contact. They follow the instructions, which gives the attackers access to their confidential details. 

AirDrop crypto Phishing

Business uses airdrops as a marketing tool to lure people into using their products or services. In the crypto world, firms airdrop money in investors’ wallets to promote a particular brand by signing up for their news letters or following social media handles.

Due to the free money involved, scammers have been using airdrops phishing campaigns to access individuals’ details. For instance, users will receive a message that claims a certain amount of digital currency has been sent to their crypto wallets through an airdrop. They are then directed to a website where the purported currency is sold, they enter their details, and the attackers get access to their accounts.

Scammers Create Fake Websites, Emails, and Social Media Accounts

Using fraudulent emails and corrupt URLs is the oldest method of crypto phishing. The attackers create websites that copy cats to the original ones such that it becomes hard for one to distinguish between the two. To direct users to these fake websites, they poison DNS cache, a commonly used system in crypto blockchain networks. When they try to click on the legitimate site, it directs them to the fraudulent websites. 

Further, the fake website will request the user to enter their details, as the known network does, and as soon as the investor tries to verify their login details, the attackers wipe their digital accounts.

In addition, cybercriminals will also create social media accounts that resemble a known company. They will copy all the background information, including the logo, making it hard to realize it’s a fake account. Also, the attackers use almost similar emails; they only change one letter, which is not easily recognizable. 

Using Crypto Ice Phishing Technique

Ice phishing involves delegating a specific role, in this case, approval to cybercriminals. It happens when two parties transact through a system that uses smart contracts. The scammer changes the spender’s address and waits for the investor to authorize the monetary transaction. Therefore, the cyber criminal receives the proceedings since, in the crypto world, the spender can allow activity on behalf of the owner.

How to Prevent Cryptocurrency Phishing

Many people assume that the crypto world gives individuals money for free. And for this reason, they tend to follow instructions that promise to offer them digital currencies without any work. However, many activities need research before joining the crypto world, such as mining, trading, and holding techniques. Therefore if you notice any email that guarantees free rewards, avoid clicking on any links attached to the messages.

Other ways an investor can guard themselves against crypto phishing include; 

  • Check your emails carefully and verify the URLs are from a known contact.
  • It is best to manually type in a website address directly rather than clicking links.
  • Install antivirus software to protect you from attacks.

Conclusion

As an investor, it is essential to know how phishing works in the crypto world to protect yourself from such a cyber attack. This information can help you identify malicious messages and links that can put your digital wallet at risk.

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