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Ripple CTO David Schwartz has issued a stark warning to crypto users, labeling phishing emails as the greatest current threat to hardware wallets. His statement comes as cybercriminals increasingly target investors looking for safety in cold storage amid the ongoing market downturn.
Schwartz claims that the attackers are sending scam emails designed to appear as firmware updates or security verification. The purpose of these communications is to encourage people to enter their recovery seed phrases on imitation websites or forms. The moment the word is sent, the ownership of the wallet and the money in it is lost forever.
Schwartz pointed out that the increase in phishing attempts coincides with a time of intense market anxiety. Many traders have shifted their investments to stablecoins stored in hardware wallets, making them even more attractive to scammers.
He warned that the most popular scams do not require hacking but instead rely on persuading the victim via social engineering techniques. “The bait is always the same,” he shared, speaking about the fraudulent alerts asking for seed phrases outside the wallet device.
A user who goes by the name JT Marlin XRP Financial shared a story about a close acquaintance who was tricked into giving away $20,000 by fraudsters posing as Coinbase representatives. The fraudsters managed to persuade the unfortunate person to restore his wallet through Trust Wallet, thus literally handing over access to the funds to them. The victim even reported the matter to local and federal police, but due to no investigation being started, he was left with no way to recover his loss.
A different member of the XRP community, whose username is XRP Update, was the one who mentioned the need to be more aware of the problem and have good education on the issue of phishing. He stated that the users’ alertness is still the best and only line of defense in a situation where even the most secure systems rely on human actions.
Their views reflect a broader recognition that technological security alone cannot prevent social engineering. As phishing becomes increasingly sophisticated, community-driven awareness campaigns have become crucial in protecting cryptocurrency assets.
Could greater user education finally reduce phishing’s grip on the digital asset industry?
Phishing scams have become a huge global problem, and it is hard to find a cryptocurrency-related business that is not a victim; even the giants' exchanges have not escaped the scam game.
Coinbase reported that it had attempted to eliminate its support personnel through social engineering and had lost more than $400 million. The theft did not go through the blockchain but managed to trick the employees, allowing the hackers access.
The alert from Schwartz indicates that all sorts of wallets - hot, cold, and hardware - can be tricked. The CTO reminded people to always keep inputting the seed phrases out of concern into any link or website, reiterating the concept of self-custody.
He advised people who own crypto to authenticate messages through official channels continuously and remain suspicious of any unwanted requests. As phishing methods change, he said, education and vigilance over digital theft are the only effective defenses.
Ripple CTO David Schwartz’s warning suggests an increasing threat from phishing scams targeting hardware wallets. As attacks become more sophisticated, users must be highly cautious, thoroughly inspect every communication, and never share seed phrases online to ensure their digital assets remain secure.
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