Cryptocurrency Exchanges Targeted by Fake Photo Scam

Research indicates that large cryptocurrency exchanges are increasingly being targeted by scammers using doctored photographs to trick two-factor authentication reset procedures. The attack once again highlights the importance of securing one’s own private keys and not entrusting security to a third party exchange.

There is a market on dark web forums for doctored images and the rates to buy them are remarkably cheap. However, given that many large exchanges require multiple verification methods to reset a two-factor authentication, it remains to be seen just how effective the scam will be.

Cryptocurrency Exchanges are Still Not Safe Storage Options

Those cryptocurrency users choosing to leave their digital assets on centralised exchanges have a lot to be fearful of already. There is the ever-present risk of the site itself falling victim to a security comprise. Then there is the whole QuadrigaCX debacle, which appears to have been caused by either negligence on part of the now-deceased CEO or perhaps something more sinister altogether.

Add to these issues the risk of phishing attacks and potential mismanagement of company finances à la Mt. Gox and it is easy to see why almost every thought leader in the space advocates learning to secure your own digital assets.