Beware: FTX Users Targeted by Scam Phishing Emails

Scam emails are circulating among FTX users, posing a threat to their digital assets. Here’s what you need to know.

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  • FTX users are targeted with phishing emails.
  • Emails claim to offer withdrawal options.
  • Users should never interact with emails that come from unverified sources.

In the wake of the shocking collapse of FTX, a platform that once stood as a titan in the crypto trading world, users are grappling with significant financial losses. A new threat has emerged as if this blow wasn’t devastating enough. Cybercriminals are now exploiting the chaos, targeting FTX users with phishing attacks that promise to enable withdrawals from the platform. 

FTX Users in Scammers’ Sights

FTX users have been receiving emails that appear to be from the platform itself. These emails inform users that they can withdraw digital assets from their FTX account. For instance, user ZachXBT shared an email supposedly from FTX on August 25. 

The emails claim that withdrawals will be dispatched in USD-C, a stablecoin, and instruct users to click a “Withdraw Now” button. The emails also mention that due to high volume, withdrawals may take up to 90 days to process.

On closer inspection, these emails are phishing attempts to gain unauthorized access to user accounts.

What Is Phishing, and How Can You Protect Yourself from It? 

Phishing is a cybercrime where attackers impersonate trustworthy entities to deceive individuals into revealing sensitive information. This could be login credentials, credit card numbers, or other personal data. The message often contains a link directing users to a fake website where they are prompted to enter sensitive information.

Phishing is a low-cost, high-reward type of attack for cybercriminals. It exploits the human element of cybersecurity, relying on people’s trust and lack of awareness to succeed. 

With the rise of online transactions and social media, phishing attempts have become more sophisticated, making it increasingly challenging to distinguish between genuine and fraudulent requests. Here are the basic steps users should take to protect themselves against phishing: 

Verify the Source: Always double-check the sender’s email address, especially if the message asks for sensitive information.

Be Skeptical of Links: Hover over any links in the email to see where they lead. Don’t click if the URL looks suspicious or doesn’t match the supposed sender’s website.

Use Two-Factor Authentication (2FA): Enabling 2FA adds an extra layer of security, requiring a password and a second form of identification.

Keep Software Updated: Ensure your operating system and any security software are up-to-date. These updates often contain patches for known security vulnerabilities.

Educate and Train: Awareness is your first line of defense. Stay informed about the latest phishing techniques and consider cybersecurity training.

Taking these steps can significantly reduce your risk of falling victim to phishing scams and better safeguard your personal information.

On the Flipside

Phishing attacks are common in the crypto space. For instance, in November 2022, following the FTX attack, scammers targeted Binance users

The latest FTX phishing attacks came after another security breach at the exchange. On Monday, August 28, Kroll, the claims agent in the FTX bankruptcy suit, experienced a data breach.  

Why This Matters

The phishing scam targeting FTX users is a stark reminder of the importance of cybersecurity in the crypto trading world. Falling victim to such scams leads to financial loss and undermines trust in digital trading platforms.

Read more about the latest security breach hitting FTX users: 

FTX Suspends Users’ Accounts Following Kroll Security Breach

Read more about Worldcoin’s failed launch 

Worldcoin (WLD) Slides 45% in August: What Went Wrong?

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
David Marsanic

David Marsanic is a journalist for DailyCoin who covers the intersection of crypto, traditional finance, and government. He focuses on institutionalized crypto entities like major cryptocurrency exchanges and Solana, breaking down complex topics into easy-to-understand writing. David's prior experience as a business journalist at various crypto and traditional news sites has enabled him to maintain a critical approach to news while adhering to high journalistic integrity standards.