The cryptocurrency ecosystem has once again been targeted by scammers, this time setting their sights on users of the popular exchange Gemini. Jameson Lopp, co-founder of CasaHODL, recently uncovered a new phishing scam that attempts to deceive users into transferring their funds to malicious actors. The scam involves a fake data breach notice claiming that Gemini is partnering with Trust Wallet to protect users’ funds after a supposed security breach. This alarming tactic preys on users’ fear of losing their assets by urging them to transfer their funds to a wallet controlled by a seed phrase provided by the scammers.
Yu Xian, founder of SlowMist, has emphasized that phishing scams involving mnemonic phrases are not a new phenomenon in the crypto world. These scams target unsuspecting users with emails that appear legitimate, often based on leaked data from the dark web. The low cost of sending these scam emails makes them a persistent threat to the industry. It is particularly concerning for users who rely on third-party custody platforms, as they are more susceptible to falling victim to these schemes.
In response to the increasing prevalence of phishing scams, experts are urging users to remain vigilant and exercise caution. Psifour, a developer for Taproot Wizard, highlighted the importance of publicizing these scams to help prevent newcomers from being scammed. By raising awareness about the tactics used by scammers, users can better protect themselves and their assets. Gemini has acknowledged the phishing attempt and has advised users to stay alert.
The impact of phishing scams on the crypto community has been significant, with substantial losses reported in recent months. In August alone, crypto phishing scams resulted in $63 million in losses for over 9,000 victims, according to blockchain security firm Scam Sniffer. Despite a decrease in the number of victims, there was a 215% increase in stolen funds, underscoring the growing sophistication of these attacks. This trend highlights the urgent need for stronger security measures and increased user awareness to combat the evolving tactics of scammers in the cryptocurrency space.