As reported by Cointelegraph, the ongoing struggle between cybercriminals and crypto wallet providers continues to escalate. According to a top executive from a prominent hardware wallet company, this conflict is in a perpetual standoff, with both sides constantly evolving their tactics.
“This is an unending game of cat and mouse,” states Ian Rogers, the Chief Experience Officer at Ledger, when discussing the relentless pursuit between crypto wallet companies introducing new security measures and hackers devising more sophisticated methods to breach victims’ wallets.
Rogers laments that the simplest scams often yield the best results, as they exploit users’ common mistakes. “Every day, people give away their 24-word phrases. As long as that continues, scammers will opt for the least expensive attack,” he warns, stressing, “If someone asks for your 24 words, they’re a criminal.”
Rogers points out a frequent crypto scam where unsuspecting victims are lured into responding to replies under any crypto-related Twitter post. These messages typically read, “Direct message me, I can assist you.”
He warns, “You must remember, scammers are always attempting to get your 24 words.” Jason Jiang, CertiK’s Chief Business Officer, recently shared with Cointelegraph that a heightened awareness of phishing attacks on social media can significantly boost a user’s crypto security.
In a more sinister turn, scammers sometimes compromise the accounts of influential industry figures to post malicious links, making it increasingly difficult for users to identify the scam. In September 2023, a fraudulent NFT giveaway was conducted through the compromised account of Ethereum co-founder Vitalik Buterin, resulting in over $691,000 drained from followers’ wallets.
Rogers underscores that such threats will persist, just as scams are not exclusive to the crypto world. He recalls the infamous “Nigerian president” email scams that have been around for years. “The cost of the attack always matches the potential reward,” Rogers notes. In 2024, crypto-related hacks surged by 15% from the previous year, totaling over $3 billion in stolen assets.
Meanwhile, a new threat known as ‘pig butchering’ scams has surfaced as a major concern for crypto investors. This complex phishing ploy has tricked investors into voluntarily transferring their assets to scam crypto addresses, resulting in a staggering loss of $5.5 billion across 200,000 identified cases on the Ethereum network in 2024 alone.
