New crypto scam targets users recovering lost wallet access codes
What's the story
A new cryptocurrency scam has emerged, preying on users who have forgotten their digital wallet access codes. The fraudsters set up fake websites offering software to recover the 24-word "seed phrase" required for accessing crypto assets. However, these programs are actually designed by criminals to harvest personal information and passwords from unsuspecting users.
Scam tactics
Scammers are exploiting people's desperation
Alex Holland from the HP Security Lab, which discovered this fraud scheme, said scammers are exploiting people's desperation to recover their cryptocurrency wallets. He explained that if a person forgets their seed phrase, they might search for a "free cryptocurrency recovery tool." This search could lead them to one of these fake malware-laden tools.
Wallet details
What is a cryptocurrency wallet and seed phrase?
A cryptocurrency wallet is a software on your computer that stores the keys needed to access different cryptocurrencies. These wallets generate seed phrases, which can be anywhere between 12 and 24 words long, giving users access to their digital assets. The scam software is hosted on a website promising assistance in retrieving this crucial seed phrase for users who may have forgotten it.
Malware effects
One of the malicious programs is called 'Lost crypto wallets'
One of the malicious programs discovered by the HP Security Lab is called "Lost crypto wallets finder - cryptocurrency recovery toolkit." The site hosting this program is now down. However, when downloaded, the malware collects information such as passwords from web browsers, documents, photos, and other sensitive files. This data is then zipped into a file and sent to criminals who may use it for future fraud.
Protection tips
What to do if you've downloaded malware?
If you have trouble remembering your passwords or where you wrote them down, don't panic, as that is exactly what the fraudsters want. There are legitimate sites that can help recover a seed phrase, but it's important to read online reviews before trusting them. If you've downloaded malware, remove it with reputable security software and quickly reset your passwords, starting with banking ones.