We are warned frequently to stay safe online since the internet became an integral part of our lives. We are taught to never give our financial or personal information online and to not click on unfamiliar links. This lesson is valuable since the crypto industry and net banking have become mainstream. Phishing attacks have existed since the dawn of the internet. However, cryptocurrency customers have become prime targets due to the rapid innovation in the blockchain network.
What is a phishing attack?
A type of scam that tricks users into giving up personal information is called a phishing scam. A crypto phishing attack involves passwords to wallets and exchanges or your private key. Criminals/scammers persuade users to give up information or pay fake fees by acting as genuine companies. Next, scammers enter your account using the information and empty the funds.
Crypto scams are increasing as the crypto world is rapidly expanding. Some scams involve sending mass emails hoping someone will give up their information, while others target users as individuals. Some ambitious criminals set up fake companies and coins to cheat users out of their money.
How are phishing attacks carried out?
A phishing attack involves sending out text messages or emails. The scammers create fake companies or try to act as if they are genuine companies. Other times, emails offer a new investment opportunity with super high returns. But, in most cases, scammers use excuses of a suspicious activity or problem in your account which requires your urgent attention.
These scam messages come with links attached. The scam links are presented as ways to alter the settings of your account to fix the so-called issue. But instead, the link directs you to a fake website. These fake websites are hard to detect as they look identical to real websites. The scammers get all the information needed to scam a target once they enter their account details on the fake website.
These scams are the most common methods of phishing scams, but there are many other types of crypto-phishing attacks. Let us look at the other crypto phishing attacks below.
Types of Phishing attacks
Spear Phishing attack
Spear phishing attacks are similar to general phishing attacks, but these attacks involve scamming specific information from the target. The scammer adds publicly available information about the target, like a phone number or company role, to make it look authentic instead of just sending a generic email.
This added information may make the target believe the email is from a colleague or known acquaintance. If you receive unfamiliar emails from contacts who seem authentic, check the details of the message and the email address carefully.
Whale Phishing attack
Whale phishing is similar to a spear phishing attack but the targets are different. High-ranking personnel like directors or CEOs are the targets of a whale phishing attack. These attacks are also known as CEO fraud as they are usually the targets.
Scammers can control every aspect of the accounts or systems of a company if they obtain the credentials of the CEO. By targeting the CEO, scammers can steal large sums of money or even personal information from employees and users more than other targets.
Pharming attack
A pharming attack redirects you to a fake website even if you click on the correct link. This attack is successful by controlling the Domain Name Server (DNS) of the website. DNS is behind converting the link a user types into the IP address of a website.
Users are taken to fake websites even if they type the correct link when the DNS is hacked. Since it converts your link to a different web address. This fake website may feel and look similar to the original and prompt you to enter your personal information.
Crypto-jacking attack
Crypto-jacking is a process of using other users’ system resources to mine crypto coins. This type of scam may not always be a phishing attack. Downloading unfamiliar links may install software for crypto miners to use the resources.
Users may notice lower battery life or slow performance after this attack. This sluggish performance is due to the mining application running in the background of your system. This type of attack is not even detected until much later. Crypto-jacking attacks enable scammers to profit from your system resources.
Crypto Malware attack
Some scammers take complete control of users’ systems. This type of attack is also well known as ransomware. Hackers lock users out of their mobile devices or computers and prevent them from using them. This attack also gives the scammers access to all the data on the devices. The criminals can then threaten users with posting private information publicly or deleting all the data. Hackers demand large sums of money in cryptocurrency in exchange for giving up control over their devices.
How to prevent phishing attacks?
- Use randomized or stronger passwords for every account you use.
- Check every email carefully before clicking on an attachment or link.
- Never send private keys or passwords over the phone, text, or email.
- Ensure a link is legitimate and not fake if you are redirected to a website.
- Stay away from untrustworthy exchanges or wallet services.
- Make sure to enable multi-layer authentication to ensure a random code is required for new logins.
Final Thoughts
It is important to stay secure on the internet, especially with your private financial information. Hackers do not stop at gaining access to one service or device; they might also acquire data on other linked accounts and services in crypto phishing attacks. Your accounts will be secure if you are careful with unfamiliar messages and take the necessary precautions.
