The rapid growth of the crypto industry has drawn the attention of cybercriminals, who now target not only exchanges but also end users through phishing.
According to Kaspersky’s financial cyberthreat report, crypto-related phishing detection rose by 83.4% between 2023 -2024. Also, Netlify Scam – a phishing attack technique spotted by the Netskope Threat Lab, proved that crypto phishing attacks are on the rise, and many enthusiasts are unknowingly becoming victims.
But what is a crypto phishing attack?
Well, it's one of the ruthless forms of
Types of phishing attacks targeting the crypto industry:
Phishers aren't attacking lightly; they now leverage AI for greater conviction.
Email phishing attack: This method has long existed, and AI has perfected it so the email is free of typos and reads more convincing than ever. Here, the attacker sends an email that appears to be from a legitimate crypto exchange or wallet provider – urging the target victim to click a link that eventually redirects the target to a cloned website that looks identical to the real exchange website to enter their login credentials and share their private keys; consequently, they lose their funds
Social media phishing: This attack is very common on X (Twitter), Facebook, Telegram and so on. Attackers pick your contact from a legitimate group and send you a DM (direct message) introducing themselves as winners from a trade story they'll eventually share. The image of wins is a proven strategy to get your interest. They position themselves as a legitimate cryptocurrency exchange or wallet provider or broker or expert traders. Most times, they share a link where you register and even log in with private credentials or private keys. If you fall for their scheme, they'd have gotten away with your funds before you realize their scheme.
Malware and virus phishing: This is another form of phishing that is meticulously designed. This kind of attack is when the attacker sends a link or file containing malware or a virus. Once the target victim clicks on the link or opens the attached file, their device becomes automatically infected with malware or a virus that can steal their login credentials or private keys.
Phone phishing: This attack is when an attacker contacts the victim via phone and impersonates as a legitimate cryptocurrency exchange or wallet provider representative. They may ask the victim to provide sensitive information or remote access to their computer.
Safety Solutions to Combat Phishing Attacks:
1: Link verification should be prioritized: Use blockchain technology to verify legitimate URLs against many known phishing sites. This process helps users, especially crypto newbies, to interact only with legitimate platforms.
2: Decentralized blacklisting Systems should be adopted: Implement decentralized and transparent systems, such as
3: Regular audit of any smart contracts: One of the safest
4: Cultivate the habit of security awareness: Security worries grow daily. Our world is no longer as safe as it used to be decades ago due to the level of advanced technology we now operate. Thus, if you want to be safe from any form of cyber threats, you have to be security-conscious about everything you do, related and unrelated to crypto.
5: Leverage the use of a hardware wallet: A Hard wallet has proven to be one of the safest ways to store your cryptocurrency. While it is a physical device that stores your cryptocurrency offline, it'll be a bit difficult for cyber attackers to swiftly access and steal your funds.
6: Use security solutions: A reliable security solution will protect your devices (smartphones, PC and so on) from various types of threats. For instance, Kaspersky Premium prevents all known and unknown cryptocurrency fraud, as well as unauthorised use of your computer's processing power to mine cryptocurrency.
DIY ways on how to identify or spot crypto phishing scams, especially if you're new in the cryptosphere.
Check the HTTPS and padlock icon of the website:
- Check the encryption https
- Check for the padlock that indicates safety
- Check the domain name. A little tweak here could be a phisher's trap.
Verify for misleading URLs:
Look closer to see if the domain name is misspelt. Meanwhile, note that phishers are smart enough to add characters to confuse the target. For example, Cryptoweb3.com and Crypt0web3.com or Cryptoweb3.com and Crypto_web3.com are completely different, but if you're not careful, you'd think they're the same. They are not.
Note: Phishers are deep thinkers who could use any convincing means to get your personal information.
Verify the sender's email address:
This method has saved a lot of people, not just in the crypto industry but across many industries. You don't need rocket science knowledge to verify a sender's email address. And also, note that not all but many suspicious emails involve lots of complex characters and numbers and the sender's last and first name are spelt wrongly. While some look so real, always verify before engaging with such emails.
Watch out for suspicious links:
This is smartly embedded within a genuine-looking email with zero typos. Note: Not all links are bad, but the majority are doctored to trick you into revealing your crypto data.
Avoid communities or emails that hurry you into sharing personal information:
Words like “quickly grab the opportunity by clicking this link” in crypto communities should not be followed without proper research. Once you sense a “hurry to click” text in crypto communities, it should arouse your consciousness because many at times hackers often use this means to get your data.
Don't fall for social media winning tricks:
From all indications, a meme or coin could move from 0 to 1000% within a short period. And it can also lose its value within a short while as well. However, not every win is real. Crypto attackers use a cloned winning pattern to lure newbies into registering via a trap link where all their personal information, like key phrases, personal data and so on, would be collected through registration links. Be smart!
