Kraken CSO Alerts Crypto Community about Phishing and Listing Scams
Nicholas Percoco, the chief security officer of Crypto exchange Kraken has warned the crypto community of a new phishing scam.
Percoco revealed this on Twitter with a series of tweets in which he explained the process used by cyber criminals to dupe victims.
Scammers pretend to work for legit crypto companies
According to Percoco, scammers use fake identities and information to scam victims.
Firstly they pretend to be part of the listing teams on cryptocurrency exchanges like Kraken to lure victims on social media platforms like Twitter and Linkedin.
During the course of the conversation, the scammer gets the victim’s details and sends a follow up mail. Puny code domains are used to send mails using addresses that look legit.
An agreement is reached with the scammer who ceases communications after receiving payment.
Perococo offered a way for the crypto community to prevent Punycode phishing scams.
A mail sent from a Punycode domain would have ‘;xn—‘’ within its header. This is an easy way to prevent Punycode phishing.
Also Setting of mail filters to quarantine mails will also prevent phishing
Perococo concluded his tweet by revealing a crucial message about Kraken exchange.
‘’Please be aware that our Listing Team does NOT make contact via social media or chat applications. The only legit way to start the process with @krakenfx is to email the legit email@example.com and have patience until we contact you with next steps.’’
Cryptocurrency scams on the rise
Cryptocurrency related scams have increased in recent years due to the popularity of digital assets like Bitcoin and Ethereum. Cybercriminals exploit the pseudonymous nature of cryptos to scam victims.
These scams come in different forms from simple scams to elaborate ponzi schemes that also designed to swindle victims of their money.
Critics of cryptocurrencies point to the growing use by criminals as a reason not to adopt cryptocurrencies.
Earlier in July Crypto analytical firm Chainalysis revealed that criminals laundered $2.9 billion using cryptocurrencies.
Despite these problems, there is a growing change within the crypto community. Crypto exchanges have started deploying security mechanisms to prevent scams on their platforms.
There has also been a concerted effort by the crypto community to educate about scams.