CISA Warns of Impersonation Scams Targeting Cryptocurrency Investors, Expert Urges Public Education

The Cybersecurity and Infrastructure Security Agency is warning cryptocurrency investors regarding the surge of impersonation scams using the names and titles of government employees.

According to Phil Larratt, director of investigations at Chainalysis, a blockchain data platform, crypto scams remain a significant threat to the cryptocurrency industry, Cointelegraph reported.

Larrat said scams generated at least $4.6 billion in illicit revenue in 2023. Impersonation scams were particularly damaging, averaging $948 per victim.

CISA’s alert aligns with the concerning trend, saying its employees will never request money transfers, cash, cryptocurrency or gift cards.

The agency advised anyone suspicious of a call from someone claiming to be its employee to hang up immediately, note the phone number and contact CISA directly for verification.

Larratt further explained that approval phishing and crypto drainers are the prevalent tactics used in such scams. Phishing scams may target users through fake crypto apps or social media impersonation, while crypto drainers trick victims into connecting their wallets to fraudulent websites, granting scammers access to steal funds.

To combat scams, Larratt said public education is crucial, noting the irreversible nature of stolen crypto assets. He also advised Web3 projects and users to implement security measures such as Web3 security extensions.