There is a new threat to users investing in cryptocurrency. Efforts are being made to cheat users of large crypto exchange platforms like Coinbase and Gemini through fake emails. In these emails, users are given fake recovery frames, which endanger their digital properties. Let's know in detail about this fishing scam and measures to avoid it.

How is this new fishing scam?

In this fishing scam, fraudsters send fake emails like Coinbase and Gemini's official mail. In these emails, users are instructed to set up a new wallet, which includes fake recovery frames. If a user setup his wallet using these fake recovery frames, then his funds are cheated.

Apart from this, scammers have also resorted to a fake class-action losuit. Email claims that Coinbase has now become a registered brokerage firm and users are required to transfer their funds to a self-costodial wallet. However, the US Securities and Exchange Commission (SEC) has dismissed the matter.

Coinbase and Gemini's response

Coinbase has issued a warning on social media platform x regarding this fishing attack. The company has clarified that they never send a recovery frame to anyone nor do they recommend using the recovery frame given by any other person. At the same time, users of Gemini are also getting similar fake emails, cited a fake court order. However, no official statement has come from Gemini yet.

According to a report by Blockchain Security firm Certik, there were a total of 296 fishing attackers in the year 2024, in which Crypto investors lost about $ 1 billion (Rs 83,000 crore). Recently, North Korean hackers also tried to steal data from big crypto founders through fake partnership meetings.

How to avoid such fishing scam?

1. Do not share any recovery fresh and beware of fake recovery fras.


2. Check the email from official websites and do not click on any suspicious link.


3. Keep two-factor authentication (2fa) on.


4. Be cautious on demanding immediate action in any email or message.


5. Contact the official support of coinbase or gemini when contact.

conclusion

Investors in the Crypto market need to be cautious and aware all the time. Do not believe any unknown email or message immediately and take full care of the safety of your digital wallets. Remember, security is the biggest solution.