November 15, 2022

What is a Phishing Attack in Crypto, and How to Prevent it?

Phishing attacks are the practice of sending fraudulent communications that appear to come from a reputable source. Know more about what is phishing and how to prevent...

Written By

Shardeum Content Team

Home » Blog » Blockchain Basics » What is a Phishing Attack in Crypto, and How to Prevent it?

What is Phishing and How to Prevent it?

To mislead a target into releasing sensitive information or handing over money during a phishing assault, users are frequently tricked into providing their sensitive data through phishing websites. Although an individual may be the sole target of a phishing assault, the attacker’s main objective is typically to compromise one or more systems that the victim has access to. The effects of a successful phishing attack on one person can spread quickly and alarmingly, affecting other users and nearby networks.

Smaller-scale phishing attacks are the most frequent form of social attacks in the modern period, even though large-scale phishing attacks do not happen frequently. One of the many ways to defend yourself from these assaults is to maintain constant attention. Other methods include adding layers of authentication and safeguarding digital asset storage.

What is a Phishing Attack Crypto?

A specific kind of crypto scam called phishing includes deceiving victims into disclosing their private keys or personal data. Phishing attacks typically take the shape of deceptive emails, texts, or postings on social media that might persuade recipients into unintentionally responding with private information, sending money to the attacker’s cryptocurrency wallet, or clicking a malicious link that compromises credentials.

To win the victim’s trust, the attacker frequently poses as an honest company or person. The attacker uses the victim’s details to take their crypto funds after the victim has been duped.

As online criminals and cyberattackers get more skilled, crypto phishing attacks are becoming more widespread. To keep your crypto funds safe, you must know the answer to ‘What is phishing and how to prevent it?’

How Does a Phishing Attack Work?

An attacker will frequently begin a crypto phishing attack by sending out a bulk email or text message to potential victims. Frequently, it will appear to be coming from a reliable source, like a wallet or crypto exchange. A link to a fake website that resembles the actual one is almost always included in the message. After the victim opens the link and enters their login details, the attacker utilizes the information improperly to access their account.

By appealing to their sense of urgency or anxiety, crypto phishing attackers convince their victim to take action. For instance, a message can allege that the victim’s account has a problem and/or attempt to attract victims by promising a phony bounty or airdrop.

Ways to Recognize a Phishing Email?

Phishing emails can be challenging to recognize. The majority of phishers take considerable pains to make their emails and websites appear trustworthy. However, the following are some warning signs to watch out for.

Copycatting:

Copycatting is the act of copying an organization’s distinguishing content, such as text, typefaces, logos, or color schemes, from their legitimate website. Being familiar with the branding of the companies you interact with is the best defense against copycat copycat crypto phishing attacks. You will have a better chance of catching a forger that way.

Spelling or Grammatical Errors:

Spelling and grammar problems are frequent in phishing emails. Phishers typically don’t spend time proofreading since they are in a rush to spread their message. Their command of the language is lacking. An email that has glaring mistakes in it is probably a phishing effort.

Misleading Links:

A link that appears to take you to the genuine website but actually directs you to a phony website is another approach to phish someone. Using truncated universal resource locators or embedded links that conceal the actual destination website is a frequent strategy for phishing attempts. For instance, the displayed anchor text for a hyperlink could be very different from the actual URL of the connection.

Using a Public Email ID Instead of a Corporate One:

Because it is simpler to build a fraud email with a public domain than a corporate one, attackers frequently use a public email account. Therefore, a professional-sounding email that ends in “@gmail.com” rather than “@companyname.com” should raise red flags.

Content Misalignment:

Searching for content misalignment is another approach to identify a phishing email. The specifics aren’t always accurate when phishers imitate a real email. It can be written in a tone or fashion that differs from what you often receive from a certain business. A discrepancy between the texts and associated images may occasionally be a symptom of a crypto phishing attack.

Common Crypto Phishing Attacks:

A phishing assault needs to catch your attention in order to be successful, and frequently, this is done by including an urgent call to action or an alluring incentive in the message’s text. Crypto phishing attacks have resulted in large losses that have attracted attention. Scams involving cryptocurrency investments and phishing are widespread, and the only way to combat them is to recognize them. Knowing a scam inside and out can enable you to recognise when you are the victim of one.

Spear Phishing Attack:

A targeted attack aimed at a particular person or business is known as spear crypto phishing attack. The phisher is aware of their target and will use this information to customize the phishing email to make it appear genuine. For instance, the attacker may pose as someone or a company the target knows in an email. Then, a malicious link that looks benign is added.

Whaling Attack:

A specific kind of spear phishing attack called a “whaling attack” focuses on CEOs and other high-profile targets within a business. Due to the possibility of a bigger audience than a typical spear phishing attack, it is very risky. For instance, the attacker might be able to access the entire network of the organization if the CEO falls for it and clicks on a malicious link.

Clone Phishing Attack:

This attack takes place when the phisher produces a copy of an authentic email that has previously been delivered to the victim. The attacker sends the victim a malicious attachment or link in place of the original. The victim is more likely to click on the link because of habit or familiarity because the email looks exactly like one they have already received.

Pharming Attack:

Even if a victim types in the proper URL, they are routed to a bogus website. This is typically accomplished by inserting malicious code into the DNS server, which is in charge of translating URLs into IP addresses. When victims attempt to access a legitimate website, the code will then reroute them to the attacker’s bogus website. Pharming attacks can be exceedingly challenging to recognise, making them particularly deadly.

Evil Twin Attack:

Public Wi-Fi networks are the target of an evil twin phishing attack. They’ll create a phony Wi-Fi network with the same name as an authorized network. Victims will be asked for their login information when they attempt to connect to the network, which the phishers can exploit to access their accounts.

Voice Phishing Attack:

Instead of emails, audio calls or voicemails are used in this kind of phishing. Typically, it takes place over voice-based media, including traditional home phone service or voice-over IP. When conducting a voice phishing attack, the perpetrator spoofs the caller ID to make it seem as though they are calling from a reputable business, like a bank.

SMS Phishing Attack:

SMS phishing, also known as smishing, uses text messages rather than emails. Smishing attackers text their victims in the guise of what appears to be official business texts. The victim will be asked for their login information when they click the link in the SMS, which the attacker then uses to access their account.

DNS Hijacking:

By altering the DNS entries for a valid website, domain name system hijacking directs users to a fraudulent website. A phisher modifies the DNS entries to point to a different IP address in order to carry out the attack. Victims who attempt to access the actual website will instead be sent to the attacker’s fake website. After that, the attack is carried out by infecting users’ computers with malware, seizing control of their routers, or interfering with DNS communications.

Phishing Bots:

Computer programmes called phishing bots automate crypto phishing attacks. They can be used to build false websites and host them on servers, as well as send out bulk phishing emails. These bots may also automatically gather the login details and other private data from their victims. These programmes are frequently used in conjunction with other attack methods, such as spamming and denial-of-service attacks.

Fake Browser Extensions:

These extensions are malicious plugins that have been made to look like trustworthy ones. They are frequently employed to steal private data, including credit card numbers and login information. They can also display unwanted adverts, infect computers with malware, or send victims to phony websites. The majority of the time, rogue websites or phishing emails are used to spread fake browser extensions. They could be challenging to take down once placed.

Ice Phishing:

The attacker will pretend to be another party and email the victim a fake transaction. The victim will have to sign the transaction using their private key. The victim is duped into approving a transaction that gives the fraudster control over their tokens. If the victim continues, they will inadvertently have given the attacker possession of their tokens.

Crypto Malware Attack:

A “crypto-malware attack” encrypts the victim’s files and requests a ransom to unlock them. Crypto phishing attack emails, rogue websites, and bogus browser extensions can all spread it. The malware will encrypt the victim’s files and show the ransom demand on their screen once it has been installed on their computer.

How to Prevent Phishing Attacks:

To prevent a crypto phishing attack, one can use these steps:

Be wary of emails, especially if they have links or attachments. Websites that seem shady or too wonderful to be true should be avoided.
Don’t open attachments or click links from websites you don’t trust.
Update your applications and operating system. When accessing the internet- especially when utilizing public Wi-Fi, use a VPN.
Never use the same password for many accounts; instead, use strong passwords. When two-factor authentication is an option, enable it.
Never divulge private information to anyone.
Use a trustworthy wallet and exchange for cryptocurrencies.
Avoid downloading browser add-ons from shady websites.

Conclusion:

We hope by now you have the answer to ‘What is phishing and how to prevent it?’ Cryptocurrencies are progressively expanding their use cases outside of the traditional financial applications. Protecting yourself from frequent crypto phishing attacks can not only protect your money but also promote trust in the cryptocurrency industry. As cryptocurrency users, you must exercise greater caution and limit your online interactions to reputable, well-respected sites with advanced, multilayered security protocols.