Ledger Users Targeted by Phishing Emails Claiming Urgent "Clear Signing" Needs

Crypto Phishing on the Rise: Hardware Wallets Are No Exception

While hardware wallets like Ledger offer superior security by keeping users' funds offline, they are not entirely immune to phishing attacks.

Scammers are continuously developing strategies to target even the most cautious cryptocurrency holders.

The latest wave of phishing emails targeting Ledger users highlights the importance of constant vigilance in the crypto world.

What’s the Scam About?

A sophisticated phishing attempt is currently circulating among Ledger users, aiming to steal their cryptocurrency by tricking them into activating a fake security feature known as “Ledger Clear Signing.”

These fraudulent emails appear highly professional, mimicking official communication from Ledger.

Users are urged to enable this feature before 31 October 2024 to maintain secure access to their wallets.

The emails threaten that failing to activate the feature will result in a loss of access after 1 November 2024.

In these emails, the scammers falsely warn:

“To continue using your Ledger device securely, activating Clear Signing is mandatory starting November 1, 2024. This feature is essential in protecting your assets from phishing attacks and fraudulent activities that are becoming more sophisticated.”

A fraudulent email impersonating Ledger is circulating, attempting to deceive users into revealing sensitive information by claiming urgent account verification is needed.

However, the emails direct users to a malicious website, where they are asked to provide sensitive information, supposedly to activate the feature.

Once the user complies, the scammers gain access to the victim's wallet, stealing their funds.

It is vital to note that these emails do not originate from Ledger, but from unknown addresses that disguise themselves to appear legitimate.

Thomas Roccia, senior threat researcher at Microsoft, described the scam as a "very clean Ledger scam," explaining that the fraudulent link redirects users to a URL that is completely unrelated to Ledger, but is convincing enough to deceive many.

How Do Phishing Scams Work?

Phishing scams generally prey on unsuspecting users by creating a sense of urgency.

In this case, scammers exploit the growing concern over security to convince victims to share their private information.

Crypto users, especially those holding substantial assets, are prime targets for these tactics.

In May 2024, a high-profile phishing attack led to a trader losing $71 million worth of cryptocurrency.

The trader, tricked into thinking they were making a secure transaction, unwittingly sent 99% of their funds to the scammer's address

This incident shows that even seasoned traders can fall victim to these scams when they’re disguised with convincing urgency.

How Big Is the Problem?

Phishing attacks have become a persistent threat in the crypto world.

Data from Scam Sniffer, an on-chain security firm, reveals that in September 2024 alone, phishing attacks accounted for over $46 million in stolen crypto from 10,800 victims.

These figures indicate that phishing scams are on the rise and becoming increasingly sophisticated.

One particularly damaging attack occurred on 28 September, when scammers used a permit phishing signature to drain 12,083 spWETH (roughly $32.4 million) from a single victim.

This type of scam demonstrates how scammers have learned to exploit technical vulnerabilities as well as human psychology.

August 2024 saw a 215% surge in phishing attacks, with scammers stealing $66 million worth of digital assets from around 9,145 victims.

The largest loss during this period, $55 million, occurred when a crypto holder unknowingly signed a transaction that transferred 55.5 million Dai to scammers through the Maker protocol.

As of October 2024, phishing attacks have continued unabated, resulting in over $41 million in losses during the first half of the month alone.

Why Ledger Users Are Prime Targets

As a leading provider of hardware wallets, Ledger has become a focal point for scammers looking to exploit its vast user base.

With its reputation for providing one of the safest methods to store digital assets, many crypto users trust Ledger to protect their holdings from online threats.

Unfortunately, this trust has also made its users an attractive target for phishing scams, which rely on tricking users into compromising their security measures.

Phishing attacks often use cleverly disguised emails that appear to come from trusted sources.

The latest attacks on Ledger users are a testament to how far scammers are willing to go, and how meticulous they can be in replicating official communications to deceive even experienced crypto holders.

How to Protect Yourself

Cryptocurrency transfers are irreversible, unlike traditional banking transactions.

Once your funds are sent to a scammer’s address, it’s virtually impossible to retrieve them.

For this reason, it is crucial that crypto holders exercise extreme caution when interacting with any communication regarding their assets.

Phishing attacks are not limited to emails; scammers are also employing phone calls to deceive unsuspecting users.

For instance, Jev Björsell, CEO of ECAD Labs, recently received a phishing call from the so-called 'Ledger Live Recovery Team.'

The caller knew Björsell's full name and presented themselves in a seemingly professional manner, further complicating the identification of such threats.

To safeguard against phishing attempts, crypto holders should be especially wary of emails or calls urging immediate action, particularly those that include suspicious links or requests for personal information.

Before clicking on any links or providing any personal information, always verify the legitimacy of the communication directly with the company involved.

In the case of Ledger, visiting their official website or contacting their customer support team can help users determine whether a security feature activation is genuinely required.

Crypto holders must remain alert, as phishing scams continue to evolve, becoming harder to spot.