Jameson Lopp, one of the co-founders of CasaHODL, recently raised a red flag about a new phishing scam targeting users of the popular cryptocurrency exchange Gemini. The scam involves a fake data breach notice that tricks users into transferring their funds to malicious actors. The scammers claim that Gemini has partnered with Trust Wallet to protect users’ funds after a supposed security breach compromised several multi-signature wallets.
Yu Xian, the founder of SlowMist, pointed out that phishing scams involving mnemonic phrases are not a new phenomenon in the crypto space. These scams are often carried out at a low cost, using leaked data from the dark web. This makes them a persistent and ongoing threat to the industry. Experts have also highlighted that users who rely on third-party custody platforms are particularly vulnerable to such scams.
Psifour, a developer for Taproot Wizard, emphasized the importance of publicizing these scams to help prevent newcomers from being deceived. By raising awareness about these illicit activities, the hope is that potential victims will be more cautious and less likely to fall for such schemes. Psifour encouraged speaking out against these scams, stating that even if it helps just one person avoid being scammed, it is worth the effort.
Gemini’s Response and Industry-Wide Losses
Gemini has acknowledged the phishing attempt and is urging its users to remain vigilant. The prevalence of phishing scams in the crypto industry has led to significant financial losses for users. According to blockchain security firm Scam Sniffer, in August alone, crypto phishing scams resulted in $63 million in losses for over 9,000 victims. Despite a decrease in the number of victims, there was a startling 215% increase in funds stolen, indicating the growing sophistication of these attacks.
The rise of phishing scams underscores the urgent need for stronger security measures and heightened user awareness within the cryptocurrency space. As attackers become more sophisticated in their tactics and techniques, it is crucial for users to stay informed and remain cautious when handling their digital assets. By staying vigilant and adopting robust security practices, individuals can better protect themselves against the evolving threat landscape of the crypto industry.