The Cybersecurity and Infrastructure Security Agency (CISA) has issued a warning about a surge in impersonation scams targeting cryptocurrency investors. These scams often use the names and titles of federal employees to deceive victims.
CISA Alert on Impersonation Scams
On June 12, CISA issued an alert explaining that its staff will never request money transfers, including cash, cryptocurrency, or gift cards. The alert advises, “If you suspect you are a target of an impersonation scammer claiming to be a CISA employee, do not pay the caller; take note of the phone number calling you; hang up immediately, [and] validate the contact by calling CISA.”
Crypto Scams on the Rise
Phil Larratt, Director of Investigations at Chainalysis, highlighted the growing threat of scams in the crypto ecosystem. Responding to questions from Cointelegraph, Larratt noted that scams remain a major driver of cryptocurrency-based crime, generating at least $4.6 billion in revenue in 2023. He pointed out that impersonation scams had the fourth-worst impact on victims, with an average payment size of $948, according to the Chainalysis 2024 Crypto Crime Report.
Prevention vs. Mitigation
Larratt emphasized the importance of preventative efforts, starting with public education, as a first line of defense against large-scale scams. “This is critical because once crypto assets are transferred to a third party, there is no longer control of that asset without the private keys of the third party’s funds,” he explained.
Phishing Frenzy and Crypto Drainers
Larratt provided details on two prominent scam tactics: approval phishing and crypto drainers. Approval phishing involves scammers targeting crypto users with fake apps, a method also adopted by romance scammers, leading to significant losses. Crypto drainer operators promote fake Web3 sites on platforms like Discord and compromised social media accounts. They trick victims into connecting their crypto wallets and approving transaction proposals that grant the scammers control over the funds.
Protective Measures for Web3 Projects and Users
Larratt concluded by stressing the need for Web3 projects and users to implement protective security measures, such as Web3 security extensions, to combat these scam tactics effectively.
The rise in impersonation scams underscores the importance of vigilance and security in the evolving landscape of cryptocurrency investments.
