Cardano (ADA) is one of the most targeted projects by cryptocurrency scammers who use phishing attacks to fool unintended victims.
endless phishing attacks
With 277 attacks, Luno is second behind Blockchain with 662. Poloniex and Magic Eden are fourth and fifth with 72 and 67 strikes, respectively.
According to VPN service AtlasVPN with Finbold, ADA was the third most phishing crypto project in the 90 days ended June 22, and 191 attacks were recorded.
Other major phishing attacks included cryptocurrency exchange Binance with 59 incidents and peer-to-peer trading platform Paxful with nine incidents.
Scammers specifically target cryptocurrency initiatives, particularly those that create products such as non-fungible coins and financial products (NFTs).
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In the first quarter of 2022, multiple scams totaled more than $329 million, and forecasts indicate that the amount will continue to grow.
Since last year, consumers have lost over $1 billion to various crypto scams.
Cardano appears to be one of those cryptocurrency projects scammers find attractive as the platform logs more use cases to replace existing networks like Ethereum.
Cardano founder Charles Hoskinson warned that due to the surge in ADA over the past year, fraud cases related to the platform will continue to rise.
It is interesting to note that despite the significant decline in the cryptocurrency market in 2022, scammers have increased.
As the Bitcoin sector grows, scammers are taking advantage of their gullibility to steal money from unsuspecting customers.
A major Cardano scam emerged in May as a result of the massive proliferation of downloadable phishing applications on social media sites.
Feinbold said that a fake Daedalus cryptocurrency wallet website was promoted on the Discord chat service with the aim of stealing users’ ADA holdings.
The suspicious program misrepresented itself as a gifts and promotions platform and anyone who downloaded it lost access to personal data in their ADA wallet.
Additionally, the lack of defined restrictions encourages scammers to scam their victims.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to become their own bank and break away from traditional money exchange systems. It is also influenced by blockchain technology and its methodology.
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