The first rule of the crypto holder club – keep your assets safe. The second rule: never, ever click on external links from suspicious emails or messages. Otherwise, you will get a chance to become another victim of phishing scammers. Trust us, whether you are an investor, a DeFi user, or a business running a white-label crypto wallet, understanding and preventing phishing attacks is crucial.
In this article, we’ll break down what phishing is, how it affects your crypto wallet, and most importantly – how to avoid phishing attacks to keep your wallet safe.
What Are Phishing Attacks in Crypto?
Phishing is a type of cyberattack where scammers impersonate legitimate services to trick users into revealing sensitive information, like private keys, seed phrases, or wallet credentials. These attacks can occur through emails, fake websites, social media messages, or even browser extensions.
Unlike traditional finance, where chargebacks or fraud protection might be available, crypto transactions are irreversible. If a hacker gains access to your wallet, your funds are most likely gone for good.
How To Recognize Phishing Attack?
First of all, the “red flag” is the content of suspicious external links that lead to a fake website that looks identical to the real one. There is even a special term – spear phishing. Usually, such emails try to mimic trusted services like MetaMask, Binance, or Ledger, asking the user to “verify” the wallet. After following the link and filling in the login information, scammers will receive access to the account and steal data and/or digital assets.
Another variation of the scam is impersonating customer support. In that case, fake support agents offer help through Telegram or Discord channels, often asking for sensitive information. And again, once the scammer receives login information or seed phrase, your wallet is in real danger.
There is also a not-so-noticeable phishing tracking technique. We talk about browser extensions, banners, and pop-ups. It includes harmful plugins that record wallet inputs or redirect users to fake transaction confirmations.
What Wallet Is Safer: Custodial or Non-Custodial?
It is important to note that wallets that are most often susceptible to phishing and similar attacks are custodial wallets. More about custodial wallets we discussed here.
These are wallets where a third party holds your private keys on your behalf. Since access is managed via usernames, passwords, and 2FA, phishing schemes that capture login credentials can easily compromise your funds.
Custodial wallets are high-risk because:
- They rely heavily on traditional login systems.
- Users often get tricked into phishing sites that mimic the custodial service.
- If the provider is hacked, all user wallets could be at risk.
On the other hand, non-custodial wallets give users full control over their private keys, which means only the person holding the seed phrase can access the funds. These wallets don’t store any user credentials on centralized servers, significantly reducing the risk of mass phishing breaches. And here the responsibility lies only with the user himself.
If you’re looking for a safer crypto wallet, choosing a non-custodial solution, especially one with enhanced security tools, is the smarter long-term decision.
Wish to create a secure and user-friendly crypto wallet platform? Evercode Lab can help you design and develop both custodial and non-custodial wallets perfectly built to your business objectives. Contact us today to start creating a wallet that empowers your users with the best of both worlds.
How You Can Protect Users From Phishing And Scammers
If your business offers a white-label crypto wallet, your brand reputation depends heavily on crypto security. A single phishing incident affecting your users can lead to lost trust, revenue, and long-term damage. So how you can protect your users from these problems?
Well, if you provide a non-custodial wallet, that means that the users are in charge of their assets’ safety. You as a wallet provider can, for example, add warning banners inside the wallet UI reminding users “not to share seed phrases”, especially during support interactions. Or your wallet can incorporate security pop-ups or flags for suspicious activity.
But if you’re a custodial solution provider, it’s your responsibility to implement robust security protocols to protect your users from phishing attacks and scammers. What you can do to boost the platform’s security is:
- Require 2FA or MFA.
- Warn users if they’re about to visit a malicious website.
- Block suspicious login attempts from unusual locations or devices.
- Display custom login alerts if a user logs in from a new IP or device.
- Allow users to set anti-phishing codes that appear in all official emails.
Final Thought
Nevertheless, phishing and other scam attacks remain one of the most persistent crypto security threats, but it’s also one of the most preventable. Although the number of scam schemes is growing every day, the number of security methods is also growing, and the protection technologies themselves are only developing. Therefore, we recommend that you stay in touch and follow new trends in the field of crypto security!
By simply informing your platform users, advising people to verify sources, and using built-in security layers, both users and businesses can significantly reduce the risk of stolen data or assets.
Don’t wait until it’s too late – secure your wallet today with Evercode Lab! Let us assist in making your platform safe and ensuring peace of mind – contact us today to learn how we can enhance your wallet security!