Although I do my best to educate myself on wallet security and know that there's no such thing as a free lunch I still fell for the latest phishing scam on MyEtherWallet. The phishing attack was disguised as a bounty for ICOs, and propagated through various slack channels and other message boards, don't click any links like this. I'm embarrassed to admit that I fell for it, but I want to my best to ensure that nobody else suffers from the actions of those that wish to take advantage of the digital currency ecosystem.
I consider myself lucky in relation to the relatively small amount I lost, and my condolences go out to those that lost much more. Although there is one silver-lining, that this happened now and not when digital currencies reach their full potential and worth. We have a chance to address this now. We can make the ecosystem safer for the future. And on a personal level, this serves as a reminder that you're never prepared as you think you are. Hubris leads to ruin, and I've learned my lesson hard way. I'll be buying a hardware wallet ASAP. I'll continue to educate myself on wallet security. And never again will I forget that there's no such thing as a free lunch. I hope this helps at least one person in the future think twice and save themselves from becoming a victim, as I wish I had done. If this post can do that then at least my losses won’t be in vain.
But in my opinion, although we all know about these issues it is these scammers that are the biggest threat to the blockchain ecosystem. Phishing scams are nothing new (just check your junk email inbox), but these scammers taking advantage of the hype have an advantage because of the complex nature of the industry making it harder to know what's real or a ruse (unlike most peoples' general understanding of email scams). These scammers are a major reason that digital currencies will never shake their bad name. It prevents people from joining this movement - despite knowing its incredible potential. Worse, if I was a new comer to that game this could have been the reason I left and distrusted it forever. We cannot afford to allow more distrust of our community to grow to the point where people are too afraid to even try and get involved.
Yet, I understand that this is just part of the game. Please don't get me wrong I'm no expert, but do my best to learn all I can about wallet security and have faith in blockchain. I would hate for a few douchebags to ruin it for everyone. Combatting the bad press that digital currencies receive from their connections to darknet markets and ransomware is bad enough, and these scammers targeting those of us who are trying to promote the blockchain ecosystem only makes reaching mainstream adoption more difficult. The longer that problems like this continue and con-artists take advantage of the few who truly believe in the technology (not just here to make a quick buck) skepticism and cynicism will continue to grow. Who knows what straw will break the camel’s back, but I just hope we can find a solution and protect blockchain technology’s enormous innovative potential.
I believe we need to come together as a community and figure out a solution. Like the open-source nature of the blockchain itself, together as a community we can hopefully these criminals to justice. Together we can make the blockchain ecosystem safer, stronger, and less like the wild west. But, working together is the only way we can accomplish these goals. If you were a victim like me, let people know. Help spread the word, so we can help others protect themselves.
I’m sure there are already many other people, likely smarter than me, working on this. Please feel free to direct me to any of these projects. I want to help bring these criminals to justice, if possible. Or at least help find a way to limit the amount of these scams, which seem to be spreading like wild fire.
I'm sure many of you know this info, but just in case - below I have posted links to the screen shots of the phishing scam, and the wallet addresses where at least stolen funds were sent:
https://www.flickr.com/photos/149975675@N08/36028302685/in/dateposted-public/
https://www.flickr.com/photos/149975675@N08/35217853203/in/dateposted-public/
https://www.flickr.com/photos/149975675@N08/35217837173/in/dateposted-public/
BE SMARTER THAN ME! STAY SAFE!
Author Bio: I’m a law student that focuses on cybercrime, intellectual property, blockchain, and other emerging technologies. I’ve also been involved in the digital assets industry for a few years now, and my experience includes working for the Chamber of Digital Commerce (the world’s leading blockchain trade association) and TechFreedom (a technology policy think tank focused on promoting innovation and protecting consumers). My experiences and research on these types of issues have shown me the issues with our current regulatory landscape (which leaves no recourse for the many victims like me) and how devastating problems like this can be for nascent industries. Note: this post only reflects my opinions and interests.