Common Phishing Attacks to Steer Clear of in the Crypto Space

Cryptocurrency
First published
February 4, 2022
Last updated
February 11, 2022

With the adoption of cryptocurrencies skyrocketing, the potential of blockchain technology is getting more acknowledgment than ever. According to experts, digital currencies have the ability the disrupt the financial space. However, with the popularity of digital currency increasing, there is also a rise in cybercrime around such crypto assets.

Regardless of the umpteen security measures taken, users are still prone to threats and scams. One such common threat is a phishing attack. There are instances when the customers are not aware and so they fall prey to these attacks. In this article we understand the common phishing attacks to be wary of in the crypto space.

What is a Phishing Attack?

Phishing is an activity wherein the attacker sends a fake message which is designed to trick the customer into revealing sensitive information to the attacker making them deploy harmful software on the victim’s infrastructure. 

Here are some common ways in which a phishing attack takes place:

  • The attacker will send a scammy message in form of an email or text message to the victim.
  • The victim clicks on the link sent by the attacker and is directed to the fraudulent website.
  • The attacker then collects sensitive data from the victim through the phishing website.
  • The attacker uses the credentials to scam the victim.

Thus, the attacker sends a fraudulent message asking the victim to sign in to a certain website or to download some kind of software. The unaware victim visits the link which causes system compromise. In the context of cryptocurrency, the phishing attack can look something like this.

What does a Phishing Attack in the Crypto Space Look Like?

  • The user is asked to update their credentials to a crypto platform across all social media channels.
  • A legitimate-looking URL claims to be a well-established crypto platform.
  • The user enters credentials without verifying whether the links are trustworthy and real.
  • The user’s credentials are then stolen and their crypto assets are compromised.

This type of phishing attack is becoming increasingly common. But you can very well steer away from them by educating yourself.

Here is how a phishing email looks like:

  • An email that wants you to take immediate action
  • Poor grammar and misspellings
  • Email addresses that are mismatched
  • A very generic signature line
  • Unexpected requests that ask for personal information

If you notice any of the above traits in an email then it’s best to first check if the link that you are being directed to is legitimate or not. By being aware of such attacks and being vigilant about the emails/messages/calls you get, you can keep yourself from getting scammed. 

Wrapping up 

Phishing attacks are very common these days, especially in the cryptocurrency space. There are attackers impersonating popular cryptocurrency platforms to get access to your accounts and ultimately steal your funds. It is best to always be extra careful when it comes to the protection of your crypto assets. The above points will help you identify such common phishing attacks so that you can secure your crypto assets better.

Stay updated about security in the crypto world with Hodlnaut which constantly educates its users about such potential attacks. Hodlnaut runs on a secure cloud infrastructure on AWS and all traffic is encrypted with SSL encryption. The platform anonymizes as much data as possible on its servers and also uses industry-standard algorithms for password hashing.

Wish to earn passive income on your cryptocurrency on a safe platform that ensures that your crypto assets are protected? Sign up with Hodlnaut and earn up to 12.73% APY on your cryptocurrencies.

Disclaimer: By using Hodlnaut, users expressly acknowledge and agree to the Terms of Use listed on our website at www.hodlnaut.com. This includes the relevant risk warnings applicable to you as a user of Hodlnaut's services, prior to/when carrying out Digital Payment Token (DPT) transactions. This article is for informational purposes only, and is not an offer nor a solicitation to invest in DPT, securities, funds, partnership interests or other investments or funding or purchasing loans. It is the user's sole responsibility to conduct due diligence and research extensively into each DPT and platform, and understand that the volatility and unpredictability of the price of DPT may result in significant loss over a short period of time. No information on Hodlnaut should be considered to be business, legal, financial or tax advice regarding the use of Hodlnaut. Users should consult their own legal, financial, tax or other professional advisors before using Hodlnaut. Please refer to our website at https://www.hodlnaut.com/tos for the full Terms of Use.

Articles we thought you might enjoy:

Put Your Crypto to Work!
Earn Passively with Hodlnaut

Join Now
Hodlnaut Crypto Interest Account