Binance CEO Changpeng Zhao (CZ) has raised concerns about the increasing number of phishing attacks and social engineering scams in the cryptocurrency industry. On July 21, CZ took to Twitter to warn users about these risks and suggested using hardware device s like Yubikey for two-factor authentication (2FA) instead of relying on mobile carrier-based 2FA.
The warning comes in the wake of an incident where the Twitter account of Uniswap founder Hayden Adams was compromised on July 20. The attackers posted malicious links on his account in an attempt to deceive his followers. Social media users quickly detected the scam and alerted others about it. Adams regained control of his account shortly after and assured his followers of an update.
The cryptocurrency industry has seen a rise in social engineering attacks, with recent incidents involving SIM-swapping attacks. In one such case, LayerZero CEO Bryan Pellegrino had his Twitter account temporarily taken over by hackers. Pellegrino suggested that the attackers may have used his speaker badge at a conference to carry out the attack. Security experts predict that such social engineering hacks, including SIM swapping, will likely continue to occur.
To protect against social engineering hacks like phishing and SIM swapping, cybersecurity experts recommend avoiding SIM-based 2FA and using safer alternatives like Google Authenticator or Authy for authentication purposes. Implementing hardware devices for 2FA, as suggest ed by CZ, can also provide an extra layer of security for cryptocurrency exchange users.
