In one of the biggest phishing scam that has rocked the crypto markets, clients on the Ledger wallets have reportedly lost over one million XRP.
It is no news that phishing and other high caliber scams have been on the rise in previous months. Since the coronavirus pandemic began, there have been reports of a surge in hack attempts on wallets more than during the last few years.
In the new twist, Ledger wallet owners were said to have lost nothing less than 1,150,000 XRP after the wallet was targeted in a recent phishing attempt, the company behind the wallet reports.
Attackers used a sophisticated method to fool Ledger wallet users, XRP Forensics claims
In its review, the XRP forensics team claimed that the phishing scam was carried out in a sophisticated attack. The crypto outfit claimed that the hackers created a domain that looked just exactly like their own. In a bid to curb future occurrences, the digital assets outfit’s forensics arm has warned customers to be careful about trivial things like the URL of the Ledger wallet before initializing an update.
“In the phishing scam, the hackers were able to use the fake domain to trick users and have stolen more than one million XRP from various Ledger wallet users. Please be very careful of things like this and be rest assured that we will look into the stolen funds”, the forensics arm said on Twitter.
Giving further updates via Twitter, XRP forensics explained that the stolen funds were transferred in five different transactions. According to records, it shows that the funds were moved to Bittrex, a crypto exchange, but the exchange was unable to catch the funds before it was moved away from the platform.
The scam was said to have been carried out using a new phishing email in which users were asked to update their wallets from a ledger wallet look-alike website. While on the platform, users were asked to download malware that ensured their accounts were compromised, giving the hackers free passage to transfer the funds in their accounts.
Another Ripple related phishing email was sent to users
Another phishing email used was sent was an email that was made to appear as though it was officially by Ripple. In the email, Users were told to put their wallets in a whitelist to enable them to participate in a sham “incentive plan” where they stand a chance to earn a share of the over 5 billion XRP that will be distributed.
Noticing the fake email, a Twitter user quickly called Ripple’s attention to the circulated email. “Users need to beware of a new scam email that is being sent around,” @whatxrpdid said.
In a recently published blog post, Ledger admitted that the firm was the recipient of an attack, and its user database was breached. The breach means that about 9,500 customers’ data have been revealed to the unknown hackers.
It is yet unclear if this is the first of many to come or if Ledger will tighten its security, but we will look at how things will develop from here.