In a surprising incident, a would-be fraudster tried hacking into a Kraken account by donning a rubber Halloween-style mask to impersonate the account owner but was swiftly detected and stopped. Kraken revealed the strange attempt last month, highlighting the extreme lengths scammers sometimes take to bypass security.
Attempt to Hack Kraken Account with Rubber Mask
The suspect first raised red flags when they failed basic identity verification questions during routine checks, such as identifying assets held in the target account. This prompted Kraken’s support team to escalate the case, requiring a video call for identity verification.
During the video call, the fraudster appeared wearing a rubber mask and holding a fake ID, hoping to impersonate the real account holder, who was a Caucasian male in his early 50s. Kraken’s Chief Security Officer Nick Percoco recalled the incident: “Our agent was like, ‘This is absolutely ridiculous. This is a rubber mask the guy’s wearing.’” The mask looked nothing like the actual account holder, and the ID was visibly altered—“clearly Photoshopped and printed onto card stock,” according to Percoco.
While the attempt was unsophisticated, Percoco noted that other platforms might not catch such schemes, particularly those that outsource customer support and may lack Kraken’s high security standards. Kraken has previously dealt with unusual fraud attempts involving fake mustaches and altered appearances, but none have succeeded thanks to the exchange’s vigilance.
Protecting Against Account Breaches
To guard against such scams, Percoco advises all users to enable two-factor authentication (2FA) on their accounts and even on their email for added security. He also recommends FIDO2 passkeys, which use cryptographic methods to authenticate logins securely and make phishing attempts nearly impossible. “Passkeys ensure you can’t be duped into thinking you’re logging into Kraken,” Percoco explained.
Crypto Scams on the Rise: DHS Thwarts Ransomware Attacks
Alongside Kraken’s vigilance, the Department of Homeland Security (DHS) has made strides in countering crypto-related cybercrime, disrupting 537 ransomware attacks and reclaiming billions in stolen cryptocurrency since 2021. DHS’s Cyber Crimes Center has been instrumental in protecting U.S. government agencies from ransomware threats.
However, phishing scams remain a significant issue for crypto users. In September alone, Scam Sniffer, an anti-scam platform, reported that over 10,800 individuals lost more than $46 million in crypto phishing scams. Ether wallets have been a primary target, with over $127 million stolen in the third quarter of 2024.
Kraken’s case underscores the importance of strict security protocols and the proactive approach required to safeguard against the rising wave of crypto fraud.
CentBit.Online
