Seed Phrase scam (AKA Secret Phrase scam)

So, it turns out that is big business in exploiting businesses lack of experience in the world of decentralised finance.

If you have a third party asking you to show them your wallet via a screen share on whatsapp/meet/teams/etc it is likely you are about to be hacked/scammed.

Essentially, showing your wallet via screenshare doesn’t mean someone can access it, BUT if you are asked to navigate through your own wallet by the other party, especially the request to go into settings happens, it is a firm suggestion that you exit the screenshare and drop the call.

Why? When this type of scam happens they are going to get you to expose your secret phrase (you know the 12 words you have to remember so you can gain access to your wallet) and they’ll only need a millisecond to do this and your wallet will be empty in seconds.

How do you limit this happening. Firstly, never, ever share your seed/secret phrase. Secondly, use a wallet type that allows for multi-signature, similar to the concept of two company directors having to sign cheques for a bank transaction; Safe (formarly gnosis) have these types of wallets.

Let us know if you want to learn more about this. It’s a hot topic that isn’t going away. Ultimately this sits firmly in the ‘conman’ sector of scams, just with an new style of value transfer.

Liked this post? Share with others!

Subscribe to our newsletter

Get more news like this diretly into your inbox.

Do you want crypto expertise in your business today?

You are one contact away from supercharging your business ability to operate confidently within crypto and blockchain. Give us a call and learn more.

Learn how we help top brands gain in-depth crypto knowledge