Crypto Email Scams – How To Avoid

Crypto Email Scam

We are now in a world full of innovations, but I am not sure we will ever be satisfied. We seek improvement for all the technologies we use on a daily basis. But can you guess who else is improving their technology skills day by day? Sadly, scammers and swindlers are improving and coming up with new ways to trick people. There are newly discovered crypto email scams to watch out for everyday. Crypto email scams have already snatched over 60 million Ether out of the wallet of innocent crypto users.

The new email scam specifically targets experienced crypto users and has already been disastrous for a huge number of people. An email scam was responsible for the loss of $60 million worth of ETH from a dog-themed crypto project. The scam occurred during its crypto token sale.

Crypto Email Scams

Crypto Email Scam Story

One of the executives of a crypto project made an announcement when he became a victim of this scam. After the occurrence he shared a screenshot of the email that was sent to him containing an attachment. The email mimicked that of an official crypto investor. But it surely was not from them and neither was the email address used in sending the email.

The email contained a PDF file that was presented as an Investment deck. As you might expect, it contained malware that automatically went through the device and somehow managed to access the crypto wallets. Immediately the malware sent the crypto out to the scammers wallet.

The crypto firm was fast to contact Chainalysis to keep an eye on the movement of the stolen funds, and also called on professional security researchers to look at the PDF file sent by the scammers.

It is gathered that this project was not the only one to fall victim to this Phishing crypto scam.

Other venture capital firms, including, County Capital and Sneaky Ventures, publicly shared that they also received the same email scam. The same email sent to County Capital was also forwarded to VC firm Sino Global Capital as they shared a screenshot.

It looked like this attack was made due to a previous one

Shortly after the attack, the people behind the scam posted a message on the Ethereum blockchain stating that they were inspired by a previous attack made on trading firm MGNR.

The attack on the trading firm was also similar, with both the attacks using phishing emails. However, the former was reported to be in the form of an invite to a Google Doc from a VC investor.

“The intrusion was probably used to implant a key logger and steal credentials to a password manager where we had (stupidly) shared a [private key] for a temporary hot wallet used between a few team members,” the firm posted.

MGNR also confirmed that they were aware of the similar attacks on the other 2 crypto firms.

A mysterious crypto user called Mewn, who is part of investing group eGirl Capital, shared his view on the attacks. He stated that the attacks are focused on specific crypto users with specialized knowledge of crypto news.

“This to me is like a big red alert to everyone in the space to be very careful,” they posted via their Twitter.

Somehow, the people responsible for this attack shared on the Ethereum blockchain that they aren’t responsible it.

How do crypto email scams work

First, you need to understand what is phishing.

Phishing is the fraudulent practice of sending emails purporting to be from reputable companies in order to induce individuals to reveal personal information, such as passwords and credit card numbers.

According to Wikipedia:

Phishing is a type of social engineering where an attacker sends a fraudulent (“spoofed”) message designed to trick a human victim into revealing sensitive information to the attacker or to deploy malicious software on the victim’s infrastructure like ransomware. Phishing attacks have become increasingly sophisticated and often transparently mirror the site being targeted, allowing the attacker to observe everything while the victim is navigating the site, and transverse any additional security boundaries with the victim.

Wikipedia

Usually, this type of scam is carried out through sending emails. The attacker may be disguised as a public figure, a celebrity, investor, family, friend, or an organization or entity.

The scammer will then add malicious links in the email content hoping for you to click, and if by any chance you click any link, it will perform certain things like, downloading a malicious program, dropping malware on the device that can eventually infect the device, and steal information or take you to their site.

How to avoid crypto email scams

Avoiding a scam like this requires you to be extra careful with clicking embedded links in your emails.

You also have to be extra careful with how you share your email online since it is one of the ways scammers can get your email and eventually list you on their sucker list.

Additionally, always check and cross-check the sender of any emails before interacting with the sender, since they can mimic the logo and name of any organization or individual.

Finally, even though these crypto scams use a technique of a crypto investor, it may not always be the case. They can change tactics at any time, but the objective will always remain the same, which is getting you to click on links in the email.

In summary, you have to realize that there are people out there who are trying hard to swindle crypto users. They may use tactics like phishing emails to get you to surrender your crypto wallets or private keys. It is your duty to make sure you keep your crypto safe by taking safety measures. Consider installing antivirus software on your devices and avoid following links in your email. Plus be sure to always cross-check the sender’s email address before interacting with them.

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