Swift Reaction Saved Crypto Users from Losing Millions
10th May 2022, Tallinn: Major cryptocurrency scams have been occurring more and more frequently over the past decade. Large crypto entities like wallets and exchanges are a common target of fraud, with losses reaching millions of dollars per case. Another large fraud was prevented in April 2022 after a CoinLoan employee received an email with a link and instructions to download an updated version of Trezor Suite. However, the individual who received this link noticed that the domain wasn’t a genuine Trezor website but, in fact, a deceitful replica. The attachment had a program designed to steal a seed phrase that grants access to a crypto wallet.
The CoinLoan security team immediately started fulfilling its plan to prevent users from being scammed. Firstly, they have reported the IP address associated with the fake domain and any other websites related to it, which led to all of them shutting down. Then the malicious software was reported to VirusTotal, a digital service that specializes in studying questionable files and sharing them with the digital security community. The CoinLoan team and taking these immediate steps saved hundreds, maybe even thousands, of the Trezor users from falling victim to the malware scam.
Although the Trezor team is not responsible for this fraudulent activity since hackers gathered user email addresses from a well-known newsletter website, this case is a great reminder of why crypto users and entities that provide crypto services should pay close attention to applying proper security measures.
Max Sapelov, co-founder and CTO of CoinLoan, commented:
“We are immensely proud of our fraud detection team. However, this incident does shed light on the inherent risks associated with (cold) non-custodial wallets, including software, connections to third-party vendors, and possible insider leaks. In contrast, custodial wallets such as CoinLoan often implement a series of checks and holds which prevent fraudsters from a) gaining access and b) moving or withdrawing crypto in the event of a leak. As attacks such as this become more common, it is our hope that users intelligently weigh up the pros and cons of each type of wallet.”
The increased frequency of crypto-related criminal activity, similar to the one detected and stopped by the CoinLoan fraud detection team, should be taken as a forewarning to the cryptocurrency sector. The negative publicity surrounding these crypto scams weakens user trust and feeds into the impression that cryptocurrencies as a form of investment are too risky. All security measures for services like CoinLoan should be held to the highest protection standard with no exceptions. At this stage of industry development, high-level security measures cannot be optional without sacrificing public trust at a crucial moment when crypto is integrating into the mainstream.
John Norris / Emma Dodds
Email: [email protected]
Tel: +44 (0) 20 7250 4770
CoinLoan is an EU-licensed crypto business that started as a project in 2017. Its platform offers Instant Loans against cryptoassets, Interest Accounts in crypto, and Crypto Exchange. These services are rendered both to individuals and corporate entities with the exceptions as required by the applicable laws. We are striving to provide our clients with the highest security standards and insurance on assets to let both corporate and private customers benefit from the highest levels of protection.
Its highly-competitive loan and APY rates, transparent pricing, and 24/7 human customer support service have resulted in high customer retention and satisfaction. CoinLoan’s platform allows swapping and managing a comprehensive and growing range of cryptocurrencies, including its native token and fiat currencies.
The company is focused on continuous innovation through state-of-the-art technology and partnerships, bringing customers constant improvements and possibilities within the crypto world.
For more information, please visit us at https://coinloan.io/ and follow us on
Disclaimer: This is a sponsored press release, and is for informational purposes only. It does not reflect the views of Crypto Daily, nor is it intended to be used as legal, tax, investment, or financial advice