May 10, 2022, Tallinn: Cryptocurrency investors and entities are becoming victims of scammers more frequently as the industry’s popularity is rising. Articles and news pieces are published daily describing unknown ways that malicious actors might get a hold of sensitive user data. Millions of dollars can be pocketed by scammers per case. CoinLoan specialists detected another major fraud attempt in April 2022.
One of the team members received an email from scammers urging them to complete an update to the most recent version of Trezor Suite. It also contained a link that, after further inspection, led to an identical copy of the official Trezor website. Email also came with an attachment that would steal crypto wallet seed phrases if opened.
Timing is important in these cases, so the CoinLoan specialists immediately took steps to prevent users from becoming victims of the fraud. The fraudulent domain and related websites were reported and shut down, preventing them from being accessed by users who received the initial email. The software in the letter was then handed to VirusTotal, a team that focuses on inspecting malware and sharing important information with the security community. The steps taken by the CoinLoan team allowed hundreds or even thousands of users to prevent the loss of their wallets and crypto assets.
It’s important to note that hackers have gained the list of email addresses from a popular newsletter website. Therefore, the Trezor team is not responsible for the data breach. However, it’s an important reminder to anyone involved in the cryptocurrency industry to be cautious and follow all possible security steps to protect themselves and their users in the case of crypto wallets.
Co-founder and CTO of CoinLoan, Max Sapelow, commented on the case: “We are immensely proud of our fraud detection team. However, this incident does shed light on the inherent risks associated with (cold) non-custodial wallets, including software, connections to third-party vendors, and possible insider leaks. In contrast, custodial wallets such as CoinLoan often implement a series of checks and holds which prevent fraudsters from a) gaining access and b) moving or withdrawing crypto in the event of a leak. As attacks such as this become more common, we hope that users intelligently weigh up the pros and cons of each type of wallet.”
While this case is not unique, the proper steps were taken by the CoinLoan fraud detection team to minimize the damage that such fraudulent activity can cause. The frequency of scam occurrences increases in the crypto segment the more popular it becomes. The negative discourse around crypto frauds can influence the public opinion of the industry and damage the trust of new investors.
Crypto services should follow the example of CoinLoan in taking serious steps to prevent fraud and using high-level security tools to detect any suspicious activity. This is a crucial time to take precautions as the crypto industry is fully integrating into millions of users’ mainstream and daily lives.
CoinLoan is an EU-licensed crypto business that started as a project in 2017. Its platform offers instant loans against crypto assets, interest accounts, and Crypto Exchange. These services are rendered both to individuals and corporate entities with exceptions required by the applicable laws. We strive to provide our clients with the highest security standards and insurance on assets to let both corporate and private customers benefit from the highest levels of protection.
Its highly-competitive loan and APY rates, transparent pricing, and 24/7 human customer support service have resulted in high customer retention and satisfaction. CoinLoan’s platform allows swapping and managing a comprehensive and growing range of cryptocurrencies, including its native token and fiat currencies.
The company is focused on continuous innovation through state-of-the-art technology and partnerships, bringing customers constant improvements and possibilities within the crypto world.
John Norris / Emma Dodds
Email: [email protected]
Tel: +44 (0) 20 7250 4770