Stay Safe: Cryptocurrency Owners Alerted to Fake Ledger Letters
In the evolving world of cryptocurrency, scams have taken a new turn as cybercriminals target Ledger hardware wallet users through deceptive postal mail. These fraudulent letters, bearing the guise of official communication, urge recipients to verify their private seed phrases under the pretense of a “critical security update.” This alarming trend was first highlighted on social media platform X in late April.
Imitation Letters: A New Scam Tactic
Tech analyst Jacob Canfield exposed this new scam when he received a suspicious letter at his residence. Adorned with Ledger’s logo and business address, the letter also included a reference number to enhance its authenticity. Recipients were instructed to scan a QR code and enter their wallet’s private recovery phrase, supposedly to validate their device. The communication employed scare tactics, warning that failure to complete the process might lead to restricted access to wallets and funds. Security experts strongly advise against complying, as doing so would hand over control of one’s cryptocurrency to fraudsters.
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Understanding Seed Phrases: The Key to Your Digital Assets
A seed phrase, also known as a recovery phrase, consists of up to 24 words that unlock a cryptocurrency wallet. Possession of this phrase allows complete control over the wallet and its contents, making it a prime target for scammers. Ledger, the hardware wallet company, confirmed the letters were fake and emphasized:
“Ledger will never call, DM, or request your 24-word recovery phrase. If it happens, it’s a scam.”
The company also cautioned customers against engaging with accounts impersonating Ledger staff or offering assistance with fund recovery.
Tracing the Scam’s Origins: A Link to Past Data Breaches
This mail scam appears to be connected to an extensive security breach from mid-2020 when hackers compromised Ledger’s database, leaking the personal information of over 270,000 clients. This isn’t the first instance of criminals using physical mail to target cryptocurrency users. A 2021 Bleeping Computer report revealed that several Ledger users received counterfeit Ledger devices, preloaded with malware, via mail. The compromised data included names, phone numbers, and addresses, facilitating this new scam.
Canfield, in his online statement, suggested that scammers are targeting Ledger users whose information was exposed during the 2020 breach. This recent scam represents an evolution in fraudulent tactics, merging traditional mail fraud with sophisticated cryptocurrency theft techniques. Security experts advise hardware wallet owners to remember that no legitimate company will ever request recovery phrases, even if the communication appears authentic.
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