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Crypto Exchange Uphold Warns Customers of Phishing Scam
Crypto exchange Uphold has issued a warning to its customers regarding phishing scam emails that are attempting to deceive users into revealing the keys to their Bitcoin wallets. Uphold informed its clients through an email on Wednesday that a phishing message had been sent to a small number of customers, urging them to link self-custody wallets to a fake Uphold website in exchange for a crypto loyalty payment. The company emphasized that this request was a scam and reiterated that Uphold would never ask customers to send money to a specific address.
Active Phishing Scams in Crypto Sector
Phishing scammers have been particularly active in the crypto sector, with reports suggesting that $374 million was suspected to have been stolen through approval phishing scams in 2023, according to Chainalysis. These scams involve deceiving victims into signing a blockchain transaction, giving hackers the ability to move certain tokens within the victim’s crypto wallet. Some victims have incurred significant losses, running into tens of millions of dollars, due to such scams.
Various Types of Crypto Phishing Scams
Aside from approval phishing scams, victims have also fallen prey to other types of phishing scams in the crypto space. These include tricking victims into sending scammers cryptocurrency through regular transactions, fake investment opportunities, impersonations, and romance scams. Notably, the FBI’s 2022 IC3 Report highlighted that “pig butchering scams” stole over $700 million from victims in 2022 across crypto and fiat currencies. Furthermore, Americans reported losses of $2.5 billion to various crypto investment scams.
Challenges in Identifying and Cancelling Crypto Transactions
Crypto transactions present challenges when it comes to combating scams, as they are peer-to-peer and irreversible. Once a transaction is made, it cannot be cancelled by an intermediary, and scammers can be difficult to identify. Recently, a scammer hacked into Bitcoin investor MicroStrategy’s X account, successfully stealing $440,000 in ETH from victims in a fake Ethereum token launch announcement.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
