A hack targeting a Trust Wallet user sent a shock wave to the community. In a new update on Twitter, Trust Wallet said it was caused by a social engineering scam.
The scam, which took place by the end of 2022, involved an “organized crime unit” that came across as a Web3 investor and stole $4 million from the user.
But it’s not a normal scam. It all centers around the fraud tactic. According to the previous report, scammers took money by taking a photo of a Trust Wallet screen.
The Super Scam
As simple as it sounds, Trust Wallet said that the scam was conducted through a series of actions. The crime unit allegedly committed similar practices in Mila and Barcelona.
According to reports, it targeted users with hot and cold wallets on multiple devices. Scammers convinced users that they were Web3 investors, insisting on a meeting in person to see the proof of funds on the wallet accounts.t
In some cases, those scammers requested victims to send funds to a new wallet beforehand. Victims were also demanded to download a fake NDA pdf file and KYC information, which Trust Wallet believed contained malware. And that was how they took control of the wallet and stole the funds.
Many People Got Hit
One of the victims, Ahad Shams, revealed that hackers took a picture of his wallet balance and successfully took over the private key.
While Trust Wallet had explanations for the attack, the case stirred up controversies in the crypto community. The motive behind taking a photo after sending an infected file just is somewhat clueless.
Amid the confusion, Trust Wallet asserted that its app extension is enabled with a high-security audit that fights against malware. While the firm provided tactics to protect wallets, it failed to deliver a concrete solution to the problem. Instead, Trust Wallet suggested that users should contact regulatory agencies and contact the firm for further support.
Trust Wallet toke TWT experienced a slight decrease shortly after the news mostly following the market downtrend.
Just one day before Trust Wallet’s scam, auditing firm BlockSec reported a hack targeting security vulnerabilities on CowSwap. The attacker exploited the exchange and moved $181.000 worth of BNB on Tornado Cash.
CowSwap has not yet posted any details about the problem.
Instead, the project only indicated that the vulnerability was related to the contract that manages the transaction fees collected for the product. The firm said the attack did not affect the user’s assets.
Traders can purchase, sell, swap, and store digital assets on a cryptocurrency exchange. Reputable exchanges are establishing themselves at an increasing rate, which is helping the blockchain sector grow.
On the other hand, innovations have led to a rise in the number of criminals who view exchanges as profitable targets. Attacks on digital currency exchanges harm investors’ assets as well as firms’ reputations.
Security experts claim that crypto owners are gradually becoming the target of numerous cybercriminal groups, while the cryptocurrency trade is presently not recognized or protected by regulators.
Users are encouraged to take note that only viewing the website of the wallet or of the approved project will help them avoid becoming a victim. They should also make several wallets for various uses, including storing, trading, and taking part in airdrops.
Hacker assaults have been launched against many new investors who entered the bitcoin industry without understanding asset protection.
Many recently added investors have recently reported that scammers have taken control of their digital wallets and stolen assets in the community of bitcoin investors.
The ways to access a wallet are not brand-new. However, the Trust Wallet case was extremely peculiar because screen photos were used in the scams.
The ongoing conflict between hackers and cyber security specialists is still present throughout the entire online ecosystem. A market that wants to stay around, in the long run, must prioritize cybersecurity.