Russian cybersecurity and anti-virus provider Kaspersky has detected a significant increase in cryptocurrency phishing attacks in 2022, with 5,040,520 attacks compared to 3,596,437 in 2021. This marks a 40% year-on-year increase, indicating that bad actors are shifting their focus from traditional financial threats to phishing as a means to target cryptocurrency investors.
Phishing attacks typically involve fake websites and communication channels that mimic legitimate companies, luring users into sharing their personal information, such as private keys, which then grant unauthorized access to their crypto wallets and assets. Kaspersky’s survey conducted in 2022 revealed that one out of seven respondents admitted to being affected by cryptocurrency phishing.
According to Kaspersky, scammers are attracted to the crypto space due to the perception that it offers a quick way to get rich with minimal effort. “Crypto still remains a symbol of getting rich quick with minimal effort,” states Kaspersky, indicating that scammers continue to innovate their techniques and stories to deceive unwary crypto investors.
The rise of decentralized finance (DeFi) has also been accompanied by increased hacking attempts. Drofa’s “An Overview of DeFi Security in 2022” research, featuring interviews with executives from blockchain security and auditing companies, reveals that DeFi hacking surged in 2022. It remains to be seen whether this trend will persist in 2023.
In addition to phishing attacks, other methods of targeting cryptocurrency investors have also emerged. For example, hardware cryptocurrency wallet provider Trezor recently issued a warning about attempts to steal users’ crypto by tricking them into entering their recovery phrase on a fake Trezor site. This highlights the need for investors to be vigilant and cautious when interacting with cryptocurrency-related websites and communication channels.
The repercussions of these phishing attacks and other cyber threats on the metaverse and the crypto sector are concerning. With the increasing adoption of cryptocurrencies and DeFi platforms, investors need to be aware of the risks and take steps to protect their assets. This includes being cautious of suspicious websites and communication channels, using multi-factor authentication, and keeping their private keys and recovery phrases secure.