8 Common Indicators of a Phishing Attempt in Crypto

2023/07/27 07:33:52

In the ever-evolving world of cryptocurrencies, security is of the utmost importance. With the increasing popularity of digital assets, cybercriminals have taken notice, and phishing attacks targeting the crypto community have become more sophisticated and rampant. As a participant in this exciting space, it is crucial to stay vigilant and know what the common indicators of a phishing attempt are in order to protect your crypto and maintain a strong security posture.

Here at KuCoin, we place top priority on user security, which is why we've started the #ThinkBeforeYouInvest campaign — your one-stop shop for crypto security education.

Let's learn how to identify common indicators of a phishing attack, as well as provide prevention strategies to keep your digital assets and information safe.

Understanding Crypto Phishing Attacks

Phishing attacks are a growing threat, especially in the crypto industry, where sensitive information and digital assets are prime targets for malicious actors. In fact, there has been a staggering 1,139% increase in phishing attacks between 2018 and 2022, according to the 2022 IC3 Report. A common method used in a phishing attack is sending phishing emails or reaching out to people via social media to deceive recipients into clicking on malicious links or downloading attachments that request account information, ultimately leading to a data breach and crypto theft.

To safeguard your confidential data and digital assets, it is crucial to acknowledge the usual signs of phishing attempts and learn how to identify phishing attacks. By understanding the common indicators of phishing attempts, you will be better prepared to spot and avoid these malicious attempts to steal your valuable information and assets.

Head over to our guide on phishing attacks to learn more about how this scam works.

What Is a Common Indicator of a Phishing Attempt in Crypto?

While you may have heard of phishing in a theoretical sense, this article aims to discuss common indicators of phishing attempts specifically targeting the crypto community. By becoming familiar with these indicators, you can stay one step ahead of cybercriminals and protect your sensitive information and digital assets.

Phishing attempts often involve emails, text messages, or other forms of communication that appear to come from the internet.

The easiest way to spot a phishing attack is to learn what to look for. Here's a list of most common indicators of a phishing attempt:

Irregular email addresses
Irregular domain names
Fake social media profiles
Unusual language and tone
Unexpected attachments and links
Urgent or threatening messages
Requests for personal information
Spelling and grammar mistakes

Let’s get into each of the indicators and see how to spot them.

1. Irregular Email Addresses

One common indicator of a phishing attempt in crypto is irregular email addresses. Suspicious email addresses may not coincide with the sender’s company or utilize public domains, making them more difficult to recognize as fraudulent. These phishing messages may appear legitimate, but are designed to trick the recipient into clicking on malicious links or providing sensitive information.

To protect yourself from email phishing scams, it is important to verify the originating email addresses before responding to any suspicious messages. Be cautious of email addresses that have an unusual email domain name, use unusual characters, or originate from unknown and unfamiliar senders, as these can be indicative of a phishing attempt.

You can cross-reference the newly-received email with the previous emails from the same company in order to determine its validity.

2. Irregular Domain Names

Another common indicator of a phishing attempt in crypto is irregular domain names. Cybercriminals often create misleading or deceptive domain names that closely resemble legitimate websites but have minor discrepancies. These irregular domain names are designed to trick unsuspecting users into believing they are interacting with a legitimate website when, in reality, they are falling victim to a phishing scam.

To avoid falling for phishing attempts with irregular domain names, always double-check the website’s URL to ensure you are on the correct, legitimate site. Be cautious of domain names that do not follow the standard format, contain unusual characters, or appear to be misleading in any way.

3. Fake Social Media Profiles

Fake social media profiles are another common indicator of phishing attempts in the crypto space. Cybercriminals often create fake profiles that mimic legitimate crypto companies or influencers to entice victims to partake in phishing scams. These fake profiles may appear to be genuine but are actually designed to defraud individuals or disseminate false information.

To protect yourself from phishing attempts involving fake social media profiles, always verify the legitimacy of any crypto company or influencer profiles you encounter. Be cautious of accounts with a lack of followers, posts, or engagement, as these can be indicative of a fake profile created for malicious purposes.

4. Unusual Language and Tone

Unusual language and tone can also be a sign of a phishing attempt. Phishing emails may contain informal greetings, inconsistent communication styles, or other language-related anomalies that signal something is amiss. These discrepancies can be due to poor language skills or copy-pasting from other sources, making the phishing email stand out from legitimate communications.

To identify phishing attempts with unusual language and tone, pay close attention to the email’s overall content and style. If an email seems to be drafted by someone who is not well-acquainted with you or is unrelated to any current events in your life, it may be a phishing attempt. Trust your instincts and always verify the legitimacy of any email that raises suspicion.

5. Unexpected Attachments or Links

Unexpected attachments or links are another common indicator of a phishing attempt. Cybercriminals often include suspicious attachments or links that prompt users to download files or input sensitive data, ultimately leading to a data breach or crypto theft. These unexpected attachments or links may appear legitimate, but are designed to deceive recipients into providing sensitive information or downloading malicious files.

To protect yourself from phishing attempts involving unexpected attachments or links, always exercise caution when downloading or clicking on any files or links. Be especially wary of password-protected zip files that include the password in the email, as this does not provide any additional security and can easily be a malicious attachment.

6. Urgent or Threatening Messages

Urgent or threatening messages are yet another common indicator of a phishing attempt. These messages are crafted to generate a sense of urgency and prompt users to take immediate action, often resulting in the divulgence of sensitive information or assets. Examples of urgent or threatening messages include warnings to suspend your account if you fail to verify your details, a special time-limited offer, etc. Recognizing these indicators of a phishing attempt can help protect your sensitive information.

To avoid falling victim to phishing attempts with urgent or threatening messages, always take a moment to evaluate the situation and verify the legitimacy of the message. Remember that most (if not all) companies will not use threatening language or demand immediate action, so be cautious of any messages that deviate from standard communication practices.

7. Requests for Personal Information

Requests for personal information, such as login credentials or wallet addresses, are another common indicator of a phishing attempt in crypto. Cybercriminals often send phishing emails disguised as special offers, promotions, or account updates to trick recipients into providing sensitive information.

To protect yourself from phishing attempts involving requests for personal information, always verify the legitimacy of any email requesting your sensitive data. Additionally, keep in mind that most companies will not ask for personal information via email or message, so be skeptical of any unusual requests for your login credentials or wallet addresses.

8. Spelling and Grammar Mistakes

Spelling errors and grammar mistakes can also be a sign of a phishing attempt. These errors may be due to poor language skills or copy-pasting from other sources, making the phishing email stand out from legitimate communications. Incorrect spelling and grammar can indicate that the email is not from a legitimate source and should be treated with caution.

To identify phishing attempts with spelling and grammar mistakes, always review the email or message for any inconsistencies or errors in writing. If an email contains numerous spelling and grammar mistakes, it may be a phishing attempt designed to deceive you into providing sensitive information or clicking on malicious links.

Staying Safe With KuCoin

Here at KuCoin, we have devised a robust structure to prevent users from falling victim to data breaches and crypto theft. KuCoin applies top-level security standards, and enables users to:

Use the KuCoin Media Verification, which will verify any business wallet addresses, phone numbers, emails, Telegram IDs, Twitter accounts, Skype accounts, URLs, and more. This way, you will always know if you are contacted by official KuCoin personnel, or by a scammer.

KuCoin Media Verification Center

Use an anti-phishing phrase that will add another layer of security to your account.
Use two-factor authentication (2FA) to prevent any crypto theft even if your passwords get exposed.

KuCoin 2FA Security Settings

Restrict login IP, which will only allow you to log in to your KuCoin account from one IP address.

KuCoin Advanced Security Settings

Prevention Strategies to Combat Phishing

Now that you are familiar with the common indicators of phishing attempts in the crypto industry, it is essential to implement prevention strategies to combat these malicious attempts. Providing security awareness training is the most effective way to prevent phishing attacks, as it teaches you to recognize the common signs of phishing attempts and other social engineering threats.

In addition to phishing prevention training, you can also use some of the following strategies to protect yourself against phishing attacks:

Using a VPN: A Virtual Private Network (VPN) encrypts all your data, making it harder for attackers to decipher even if they manage to intercept it.
Turn off WiFi auto-connect: Disable automatic connection to open WiFi networks on your devices. This drastically reduces the chance of unknowingly connecting to malicious networks that disguise themselves as regular public networks. If you do connect to a WiFi network, make sure that it’s a trusted one.
Confirm network identity: If you're in a public place, ask staff for the correct name of their Wi-Fi network and any password required.
Network sharing settings: Turn off file and printer sharing and network discovery for public networks.
Enable additional protection layers: Enable all protection layers on your accounts. This includes various passwords, 2FA, anti-phishing code, and more. The additional layer of account security is crucial when combating phishing.
Use cold wallets: If you have large amounts of crypto, place it in a secure cold wallet such as a hardware wallet. While having a device that can access your crypto holdings at all times is convenient, it’s not always the best choice from the security point of view.

Conclusion

Recognizing the common indicators of phishing attempts in the crypto industry is crucial for protecting your sensitive information and maintaining a strong security posture. By staying vigilant, educating yourself, and implementing prevention strategies, you can thwart cybercriminals’ efforts to deceive you and gain access to your valuable digital assets.

Don’t let the fear of account closure or the false promise of rewards lure you into falling for these malicious attempts; instead, remain cautious and always verify the legitimacy of any communication that raises suspicion, and always #ThinkBeforeYouInvest.