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Web3 Encyclopedia
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  • 😀Evolution from Web 1.0 to Web 3.0
    • Web 1.0 Web 2.0 Web 3.0
    • Key Features
    • Current Limitations
    • Future of Web 3.0
    • Learn: What Is Web3?
    • Learn: Will Every Brand Have a Web3 Strategy?
    • Learn: Big Ideas in 2023
    • Learn: The Web3 Paradox: Why Scaling Usage Alone Won't Lead to Mass Adoption?
    • Learn: Is Web3 A Marketing Buzz or Tech Revolution?
    • Learn: What is the relationship between blockchain and Web3?
    • Learn:Empowering Women in Web 3.0: The Role and Contributions of Women in Blockchain, DeFi, and dApp
    • Learn: Web 3.0 and the Future of E-Commerce
    • Learn: 12 ways ecosystem projects can attract more developers
    • Learn: How Web3 is Impacting Education?
    • Learn: Web3 And The Future Of Digital Advertising
    • Learn: Web3’s impact on personalization, trust and engagement
    • Learn: Web3-Powered Identity Management -- Unlocking the Benefits of Decentralization
    • Learn: Why Web2 companies fail in Web3 while others made it?
    • Learn: To Identify or Not in a Web3 World?
    • đŸ€«[Insider Series] McKinsey x Web3
    • TL;DR 👀
  • đŸ’ČBlockchain Fundamentals
    • Why is Blockchain So Popular?
    • Introduction to Blockchain
    • Blockchain Misconceptions
    • Blockchain vs Bitcoin, Database, Cloud
    • Consensus Mechanism
    • Public and Private Keys
    • Hash Functions and Cryptography
    • Sharding
    • Types of Blockchains: PoW, PoS and Private
    • Understanding Cryptocurrency
    • Coins vs Tokens
    • Blockchain Trilemma
    • Legality
    • Learn : Google’s Cloud Based Blockchain Node Service
    • Learn: How Blockchain, Digital assets, and Web3 Unlock Financial Inclusion Globally
    • Learn: Will Chinese-Made Crypto Soar Higher?
    • Learn: What Does MiCA Mean for Crypto in Europe?
    • Learn: Unraveling the Intricacies of Blockchain Forensics and Asset Tracking
    • Learn: Promising blockchain use cases in healthcare industry
    • Learn: The Role of Blockchain in Authenticating and Provenance Art
    • Learn: Blockchain-Based Digital Identity: Benefits, Risks, and Implementation Challenges
    • Learn: The Future of Energy Supply Chains
    • Learn: Revolutionizing smart contracts and cryptocurrency
    • Learn: Nigeria goes blockchain
    • Learn: A Game Changer for Online Gaming?
    • Learn: Is blockchain technology ready for high-storage applications?
    • Learn: Will Blockchain Technology Mark a Turning Point in Fraud Prevention?
    • Learn: Why ZK-rollups need data availability?
    • Learn: How will generative AI disrupt blockchain?
    • Learn: A New Blockchain for Generative AI?
    • TL;DR 👀
  • đŸŸïžWeb3 Utilities
    • Decentralized Applications (dApps)
    • Cross-chain Bridges
    • DAO
    • Artificial Intelligence
    • Learn: Is Community-building Essential for Web3 Startups?
    • Learn: ‘Decentralization Theater’
    • Learn: Crypto and AI- A yay or nay combination?
    • Learn: Dissecting the DAO
    • Learn: What is motivating Lido DAO to rise?
    • Learn: How to Turn Your Community Into a DAO?
    • Learn: The Key to Decentralized Decision Making
    • Learn: How Web 3.0 can disrupt the supply chain industry?
    • TL;DR 👀
  • đŸȘ™Bitcoin
    • What is Bitcoin
    • Bitcoin's Blockchain Technology
    • UTXO Model and Transaction Fees
    • Bitcoin Mining and Mempool
    • Learn: What is bitcoin mining?
    • What are Hard Forks and Soft Forks
    • What is SegWit and the Lightning Network
    • Bitcoin Ecosystem
    • Can Bitcoin be Destroyed? Game Theory and Network Attacks
    • Learn: Crypto token supplies explained
    • Learn: What is crypto tax-loss harvesting, and how does it work?
    • Learn: Can Crypto Go Green? How to Invest in Eco-Friendly Cryptocurrencies
    • Learn: Why Did FTX Collapse? Here’s What to Know.
    • Learn: How Sam Bankman-Fried swindled $8 billion in customer money?
    • Learn: How much is Bitcoin worth today?
    • Learn: The Costs of Running a Bitcoin Node In Nigeria
    • Learn: Has 2022 Left Any Crypto Positives?
    • Learn: How Crypto Exchanges Can Be Free of Risk?
    • Learn: Greed, Lies and FTX: Is Crypto a Force for Good or Evil?
    • Learn: Is Crypto a Cultural Movement?
    • Learn: What are the consequences of crypto’s ongoing regulatory process?
    • Learn: Beyond the Crash and Embracing NFTs?
    • Learn: Understanding crypto bag holders and their mindset
    • Learn: Inscriptions: Just A Fad, Or A Real Threat To Bitcoin Becoming Decentralized Money?
    • Learn: How Bitcoin Ordinals Can Change the Future Of Mining?
    • Learn: What is a supernet?
    • Learn: Bitcoin Miners Celebrate 10 Years Since First ASIC, What Changed Since Then?
    • Learn: Bill Vs. CBDC – Why This US Congressman Wants To Block The Fed From Issuing A Digital Dollar?
    • Learn: Why Bitcoin Will Blow People’s Minds In 2025?
    • Learn: How the Howey Test Sheds Light on Cryptocurrency's Regulatory Gray Area
    • Learn: Cryptocurrency vs AI: A Complex Debate
    • Learn: Where the U.S. Government Went Wrong in Regulating Crypto?
    • Learn: The Nostr Privacy Paradox
    • Learn: Do algorithmic stablecoins have a future as centralized coins are under scrutiny?
    • Learn: Is Bitcoin Set To Revolutionize The Financial World With Its Superior Purchasing Power?
    • Learn: What is Shibarium, and what does it mean for Shiba Inu?
    • Learn: What is a crypto dusting attack?
    • Learn: Is the Adoption of Central Bank Digital Currencies (CBDCs) the Future?
    • Learn: How Artificial Intelligence Could Revolutionize Crypto?
    • Learn: What’s next for EU’s crypto industry as European Parliament passes MiCA?
    • Learn: Why the EU Has MiCA and the U.S. Has Securities Law Confusion?
    • Learn: Six New Projects Looking to Mitigate Bitcoin Mining’s Energy Footprint
    • Learn: Who on Crypto Twitter chose not to pay for a blue checkmark?
    • Learn: What is the wash-sale rule in Crypto?
    • Learn: What is Pepecoin and can it flip memecoins Dogecoin and Shiba Inu?
    • Learn: Can you recover stolen Bitcoin from crypto scams?
    • Learn: What the ‘anti-mining bill’ means for the crypto industry in Texas?
    • Learn: Does the US have a crypto ‘tax loophole’ problem?
    • Learn: How users can stay protected?
    • Learn: How Crypto Revolutionize Cheaper and Faster Transactions?
    • Learn: Can NFTs and CFDs be BFFs?
    • Learn: A PR expert’s tips for memecoin projects
    • Learn: Why politicians aren't convinced about the Digital Euro?
    • Learn: How A 90-Year Old TA Theory Predicted The Sudden Bitcoin Boom?
    • Learn: Social Trading Platforms and CFDs: A New Paradigm in Investment
    • Learn: How could the Chinese economic crisis impact Bitcoin and crypto?
    • Learn: How do they compare: Bitcoin IRA vs. traditional IRA?
    • Learn: Why Tokenized Assets Are Safer During a Banking Crisis?
    • TL;DR 👀
  • đŸ›ąïžEthereum
    • Bitcoin vs Ethereum
    • What can Ethereum do?
    • What is Ether (ETH)?
    • What's Unique About ETH?
    • What are Smart Contracts?
    • Energy Consumption?
    • Ethereum Virtual Machine (EVM)
    • Pros & Cons of Smart Contracts
    • Decentralized Applications (dApps)
    • Ethereum Token Standards (ERC-20, ERC-721 and ERC-1155)
    • Evolution of Ethereum
    • How to Get Your First Ethereum
    • Learn: Next Ethereum Upgrade — Shanghai Upgrade
    • Learn: Tipping Scale for Crypto Adoption: Usability vs. Accessibility
    • Learn: Major Publicly Traded U.S. Bitcoin Miner Files For Chapter 11 – Impact On The Market?
    • Learn: 5 altcoin projects that made a real difference in 2022
    • Learn: How Tether Can Be a More Stable Stablecoin?
    • Learn: Are the Ethereum Killers Still Deadly?
    • Learn: What Ethereum Tech Trends Are Weathering the Bear Market?
    • Learn: How Ethereum’s token burns are making it a deflationary cryptocurrency?
    • Learn: A few things to know about Ethereum's Shanghai Upgrade
    • Learn: The Role of Enterprise Ethereum
    • Learn: Understanding Layer 2 Scaling Solutions for the Ethereum Network
    • Learn: The Battle of Giants: Bitcoin vs Ethereum
    • Learn: Cryptography, Smart Contracts and Distributed Networks
    • Learn: The Memecoin Grift and How It Threatens Ethereum Culture
    • Learn: What Is Ethereum’s ‘Data Availability' Problem, and Why Does It Matter?
    • TL;DR 👀
  • 👛Wallet
    • What is a Blockchain Wallet?
    • Hardware / Software Wallet
    • How to Get Your First Cryptocurrency
    • Setting up Metamask Wallet
    • Learn: How to connect the Avalanche network to MetaMask?
    • Learn: How to pass on your crypto when you die?
    • Learn: What are hierarchical deterministic (HD) crypto wallets?
    • Learn: Pros and Cons of Digital Wallets
    • Learn : How Web 3.0 Wallets Are Redefining Digital Asset Security?
    • Learn: Open source: Buzzword or real security for crypto wallets?
    • TL;DR 👀
  • 🌕New & Rising Protocols
    • Binance
    • NEAR
    • Solana
    • Fantom
    • Polygon
    • Cardano
    • Polkadot
    • Cosmos
    • Harmony
    • Cronos
    • Optimism
    • Terra
    • Who Will Win the L1 Wars?
    • Learn: New Layer 1 Blockchains Are Expanding the DeFi Ecosystem But No Eth Killers Yet
    • Learn: Is an Increased Focus on Layer-2 Scaling and ZK Technology Justified?
    • Learn: What Are the Stakes in the SEC vs. Ripple Case?
    • Learn: What is The Graph, and how does it work?
    • TL;DR 👀
  • 📈Decentralized Finance (DeFi)
    • CEX vs DEX
    • CeFi vs DeFi
    • Algorithmic Stablecoins
    • Airdrop
    • Liquidity Pool
    • Impermanent Loss
    • Swapping
    • Wrapped Token
    • Arbitrage Opportunities
    • Staking
    • Yield Farming
    • Total Value Locked (TVL)
    • Gas Fees
    • Lending & Borrowing
    • Useful Tools
    • Activity: Uniswap & Pancake Swap
    • Learn: Automated Market Makers (AMMs) in DeFi
    • Learn: Crypto Moving towards ESG: What Is Regenerative Finance (ReFi)
    • Learn: What Is dYdX? Understanding the Decentralized Crypto Exchange
    • Learn: It's A Wrap - DeFi in 2022
    • Learn: Why DeFi should expect more hacks this year?
    • Learn: The Security Challenges of DeFi
    • Learn: The Promising Future of Decentralized Social Media on Web 3.0
    • Learn: Can CBDCs, Tokenized Deposits, Stablecoins and DeFi Coexist?
    • Learn: The Increasing Popularity of DeFi and Its Potential to Disrupt Traditional Finance
    • Learn: The future of DeFi is ReFi
    • Learn: DeFi aggregation
    • TL;DR 👀
  • 🙈Non-Fungible Token (NFT)
    • What are NFTs?
    • Case Study
    • Storage
    • Who are the Players?
    • NFT Marketplace
    • NFT Useful Resources
    • Activity: Mint Your Own NFT
    • Learn: How You Can Prevent Hackers From Stealing Your NFTs?
    • Learn: What Is an NFT Floor Price?
    • Learn: Should Bored Ape buyers be legally entitled to refunds?
    • Learn: China’s view of NFTs different from rest of the world’s
    • Learn: NFTs IRL: How Digital Collectibles Are Forging Offline Experiences
    • Learn: How NFT Brands Can Cut Through The Noise
    • Learn: How Web3 disrupts the music sector?
    • Learn: Unlockable content in NFTs
    • Learn: Why Meta Matters in NFTs?
    • Learn: Should NFT Marketplaces Become Centralized?
    • Learn: HermĂšs vs. MetaBirkins: The NFT Case That Could Have Major Trademark and Artistic Consequence
    • Learn: What are phygital NFTs, and how do they work?
    • Learn: What is NFT ticketing and how does it work?
    • Learn: Why Solana NFT marketplace is seeing less active users?
    • Learn: NFTs and Intellectual Property
    • Learn: How AI Is Changing Artistic Creation and Challenging IP Laws?
    • Learn: The Future of NFTs: Exploring Dynamic NFTs and Their Versatile Use Cases
    • Learn: NFTs in the event and ticketing industry
    • Learn: What is NFT rarity, and how to calculate it?
    • Learn: What happens to your NFTs when you die?
    • Learn: Dogecoin-Like Spike in Milady NFTs After Elon Musk’s Tweet, But Will It Last?
    • Learn: What are NFT royalties, and how do they work?
    • Learn: How developers aim to store crypto inside NFTs?
    • Learn: Generative Art NFTs: What Are They & Why Are They So Popular?
    • TL;DR 👀
  • 💗Metaverse
    • What is the Metaverse?
    • Metaverse Economy
    • Metaverse Companies
    • GameFi
    • Learn: Are We in the Metaverse Yet?
    • Learn: Can the Metaverse exist without blockchain?
    • Learn: Can the Metaverse Facilitate Sustainable Growth of Defi Systems?
    • Learn: What is the role of biometrics in the metaverse?
    • Learn: Can metaverse be the future court?
    • Learn: Metaverse Fashion Is on the Rise, but for Whom?
    • Learn: Sustainability in the Metaverse: Challenges and Opportunities
    • Learn: How To Build A Responsible Metaverse?
    • Learn: What is a VTuber, and how do you become one?
    • Learn: How proof-of-identity provides human experiences?
    • Learn: The “Metaverse” Next Frontier for Business: Impact And Challenges
    • Learn: The 5 Biggest Misconceptions About The Metaverse
    • Learn: Why culture and ownership are critical to the metaverse?
    • TL;DR 👀
  • đŸ‘ŸCareer in Web3 (coming soon)
    • Developers
    • Moderators
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    • UI/ UX Designers
    • Digital Fashion Designers
  • đŸŒ±Sustainability (Coming Soon)
    • Industry Effort
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On this page
  • Email and messaging scams
  • Fake support requests
  • Fake websites and cloned platforms
  • Malicious software and mobile apps
  • How users can stay protected against crypto phishing scams
  • Utilizing hardware or software-based authenticators
  • Verify website authenticity
  • Be cautious with links and attachments
  • Scanning attachments with antivirus software
  • Keep software and apps updated
  • Utilizing reputable security software
  • Educate yourself and stay informed
  1. Bitcoin

Learn: How users can stay protected?

A look at the different techniques employed by crypto phishing scammers and how users can stay protected.

PreviousLearn: Does the US have a crypto ‘tax loophole’ problem?NextLearn: How Crypto Revolutionize Cheaper and Faster Transactions?

Last updated 1 year ago

In the fast-paced and ever-evolving world of cryptocurrency, where digital assets are exchanged, and fortunes can be made, a lurking danger threatens the safety of both seasoned investors and newcomers alike: crypto phishing scams.

These schemes are designed to exploit the trust and vulnerability of individuals, aiming to trick them into revealing their sensitive information or even parting with their hard-earned crypto holdings.

As the popularity of cryptocurrencies continues to rise, so does the sophistication of phishing techniques employed by cybercriminals. From impersonating legitimate exchanges and wallets to crafting compelling social engineering tactics, these scammers stop at nothing to gain unauthorized access to your digital assets.

Malicious actors use different methods of social engineering to target their victims. With social engineering tactics, scammers manipulate users’ emotions and create a sense of trust and urgency.

Eric Parker, CEO and co-founder of Giddy — a noncustodial wallet — told Cointelegraph, “Did someone reach out to you without you asking? That’s one of the biggest rules of thumb you can use. Customer service rarely, if ever, proactively reaches out to you, so you should always be suspicious of messages saying you need to take action on your account.”

“Same idea with free money: If someone is messaging you because they want to give you free money, it’s likely, not real. Be wary of any message that feels too good to be true or gives you an immediate sense of urgency or fear to make you act quickly.”

Email and messaging scams

One common technique used in crypto phishing scams is impersonating trusted entities, such as cryptocurrency exchanges or wallet providers. The scammers send out emails or messages that appear to be from these legitimate organizations, using similar branding, logos and email addresses. They aim to deceive recipients into believing that the communication is from a trustworthy source.

To achieve this, the scammers may use techniques like email spoofing, where they forge the sender’s email address to make it appear as if it’s coming from a legitimate organization. They may also use social engineering tactics to personalize the messages and make them seem more authentic. By impersonating trusted entities, scammers exploit the trust and credibility associated with these organizations to trick users into taking actions that compromise their security.

Fake support requests

Crypto phishing scammers often pose as customer support representatives of legitimate cryptocurrency exchanges or wallet providers. They send emails or messages to unsuspecting users, claiming an issue with their account or a pending transaction that requires immediate attention.

The scammers provide a contact method or a link to a fake support website where users are prompted to enter their login credentials or other sensitive information.

Omri Lahav, CEO and co-founder of Blockfence — a crypto-security browser extension — told Cointelegraph, “It’s important to remember that if someone sends you a message or email unsolicited, they likely want something from you. These links and attachments can contain malware designed to steal your keys or gain access to your systems,” continuing:

“Furthermore, they can redirect you to phishing websites. Always verify the sender’s identity and the email’s legitimacy to ensure safety. Avoid clicking on links directly; copy and paste the URL into your browser, checking carefully for any spelling discrepancies in the domain name.”

By impersonating support personnel, scammers exploit users’ trust in legitimate customer support channels. In addition, they prey on the desire to resolve issues quickly, leading users to willingly disclose their private information, which scammers can use for malicious purposes later.

Fake websites and cloned platforms

Malicious actors can also build fake websites and platforms to lure in unsuspecting users.

Domain name spoofing is a technique where scammers register domain names that closely resemble the names of legitimate cryptocurrency exchanges or wallet providers. For example, they might register a domain like “exchnage.com” instead of “exchange.com” or “myethwallet” instead of “myetherwallet.” Unfortunately, these slight variations can be easily overlooked by unsuspecting users.

Lahav said that users should “verify whether the website in question is reputable and well-known.”

“Checking the correct spelling of the URL is also crucial, as malicious actors often create URLs that closely resemble those of legitimate sites. Users should also be cautious with websites they discover through Google ads, as they may not organically rank high in search results,” he said.

Scammers use these spoofed domain names to create websites that imitate legitimate platforms. They often send phishing emails or messages containing links to these fake websites, tricking users into believing they are accessing the genuine platform. Once users enter their login credentials or perform transactions on these websites, the scammers capture the sensitive information and exploit it for their gain.

Malicious software and mobile apps

Hackers can also resort to using malicious software to target users. Keyloggers and clipboard hijacking are techniques crypto phishing scammers use to steal sensitive information from users’ devices.

Keyloggers are malicious software programs that record every keystroke a user makes on their device. When users enter their login credentials or private keys, the keylogger captures this information and sends it back to the scammers. Clipboard hijacking involves intercepting the content copied to the device’s clipboard.

Cryptocurrency transactions often involve copying and pasting wallet addresses or other sensitive information. Scammers use malicious software to monitor the clipboard and replace legitimate wallet addresses with their own. When users paste the information into the intended field, they unknowingly send their funds to the scammer’s wallet instead.

How users can stay protected against crypto phishing scams

There are steps that users can take to protect themselves while navigating the crypto space.

Enabling two-factor authentication (2FA) is one tool that can help secure crypto-related accounts from phishing scams.

2FA adds an extra layer of protection by requiring users to provide a second form of verification, typically a unique code generated on their mobile device, in addition to their password. This ensures that even if attackers obtain the user’s login credentials through phishing attempts, they still need the second factor (such as a time-based one-time password) to gain access.

Utilizing hardware or software-based authenticators

When setting up 2FA, users should consider using hardware or software-based authenticators rather than relying solely on SMS-based authentication. SMS-based 2FA can be vulnerable to SIM-swapping attacks, where attackers fraudulently take control of the user’s phone number.

Hardware authenticators, such as YubiKey or security keys, are physical devices that generate one-time passwords and provide an extra layer of security. Software-based authenticators, such as Google Authenticator or Authy, generate time-based codes on users’ smartphones. These methods are securer than SMS-based authentication because they are not susceptible to SIM-swapping attacks.

Verify website authenticity

To protect against phishing scams, users should avoid clicking on links provided in emails, messages or other unverified sources. Instead, they should manually enter the website URLs of their cryptocurrency exchanges, wallets or any other platforms they wish to access.

By manually entering the website URL, users ensure they access the legitimate website directly rather than being redirected to a fake or cloned website by clicking on a phishing link.

Be cautious with links and attachments

Before clicking on any links, users should hover their mouse cursor over them to view the destination URL in the browser’s status bar or tooltip. This allows users to verify the link’s actual destination and ensure that it matches the expected website.

Phishing scammers often disguise links by displaying a different URL text than the destination. By hovering over the link, users can detect inconsistencies and suspicious URLs that may indicate a phishing attempt.

Parker explained to Cointelegraph, “It’s very easy to fake the underlying link in an email. A scammer can show you one link in the email’s text but make the underlying hyperlink something else.”

“A favorite scam amongst crypto phishers is to copy a reputable website’s UI but place their malicious code for the login or Wallet Connect portion, which results in stolen passwords, or worse, stolen seed phrases. So, always double-check the website URL you’re logging into or connecting your crypto wallet with.”

Scanning attachments with antivirus software

Users should exercise caution when downloading and opening attachments, especially from untrusted or suspicious sources. Attachments can contain malware, including keyloggers or trojans, which can compromise the security of a user’s device and cryptocurrency accounts.

To mitigate this risk, users should scan all attachments with reputable antivirus software before opening them. This helps detect and remove any potential malware threats, reducing the chances of falling victim to a phishing attack.

Keep software and apps updated

Keeping operating systems, web browsers, devices and other software up to date is essential for maintaining the security of the user’s devices. Updates can include security patches that address known vulnerabilities and protect against emerging threats.

Utilizing reputable security software

To add an extra layer of protection against phishing scams and malware, users should consider installing reputable security software on their devices.

Antivirus, anti-malware and anti-phishing software can help detect and block malicious threats, including phishing emails, fake websites and malware-infected files.

By regularly updating and running security scans using reputable software, users can minimize the risk of falling victim to phishing scams and ensure the overall security of their devices and cryptocurrency-related activities.

Educate yourself and stay informed

Crypto phishing scams constantly evolve, and new tactics emerge regularly. Users should take the initiative to educate themselves about the latest phishing techniques and scams targeting the cryptocurrency community. In addition, stay informed by researching and reading about recent phishing incidents and security best practices.

To stay updated on security-related news and receive timely warnings about phishing scams, users should follow trusted sources in the cryptocurrency community. This can include official announcements and social media accounts of cryptocurrency exchanges, wallet providers and reputable cybersecurity organizations.

By following reliable sources, users can receive accurate information and alerts regarding emerging phishing scams, security vulnerabilities and best practices for protecting their crypto assets.

This article first appeared in Cointelegraph, written by

đŸȘ™
Anthony Clarke
Bitcoin Scams, Scams, Security, Cybersecurity, Biometric Security, Wallet, Bitcoin Wallet, Hardware Wallet, Mobile Wallet