Recently, Jameson Lopp, co-founder of CasaHODL, has raised concerns about a new phishing scam that specifically targets Gemini users. The scam involves scammers sending out fake data breach notices in an attempt to deceive users into transferring their funds to malicious actors. The notice falsely claims that Gemini has partnered with Trust Wallet following a supposed security breach that compromised several multi-signature wallets on their backend storage servers. The scammers are urging users to transfer their funds to a wallet controlled by a seed phrase they provide, misleading users by labeling it as a “Unique Recovery Phrase.”
Phishing Scams Involving Mnemonic Phrases
Yu Xian, the founder of SlowMist, noted that phishing scams involving mnemonic phrases are not new in the crypto industry. He pointed out the low cost associated with sending these scam emails, often sourced from leaked data on the dark web, making them a persistent threat. It is crucial to understand that users who depend on third-party custody platforms are particularly vulnerable to such scams. Therefore, raising awareness about these fraudulent attempts can help prevent unsuspecting newcomers from falling victim to these schemes.
Gemini Acknowledges Phishing Attempt
Gemini has acknowledged the phishing attempt and advised users to remain vigilant. With the rise of phishing scams in the industry, there have been significant losses incurred by crypto users. According to blockchain security firm Scam Sniffer, in August alone, crypto phishing scams resulted in $63 million in losses for 9,145 victims. Despite a decrease in the number of victims by 34%, there was a notable 215% increase in stolen funds. This alarming trend underscores the importance of implementing robust security measures and enhancing user awareness to combat these threats effectively.
Leave a Reply