Phishing Scams Exploit Investor Trust in Hardware Wallets
Ripple CTO David Schwartz has raised an alert about a growing wave of phishing emails targeting hardware wallet users. According to Schwartz, scammers are sending fake messages disguised as wallet security upgrades or verification requests, tricking users into revealing their recovery seed phrases. Once entered into a fraudulent page, attackers immediately gain access to victims’ funds, often draining accounts within minutes.
The ongoing volatility in the crypto market has pushed many investors to move their assets into hardware wallets for safety. However, this shift has made them key targets for scammers, who are now flooding inboxes with convincing fake messages. Schwartz urged users to ignore such emails unless they can verify them independently through official hardware wallet providers or trusted sources.
The increase in fraudulent emails demonstrates the growing sophistication of phishing attacks in the digital asset space. Cybercriminals now rely on cloned websites, spoofed domains, and AI-generated messages to deceive users. These scams do not exploit blockchain vulnerabilities but rather human trust, which continues to be the weakest link in crypto security.
David Schwartz reminded investors that a seed phrase should only be entered into the hardware wallet itself. Any online request for it—no matter how convincing—should be treated as a scam. He warned that while hardware wallets remain one of the safest storage methods, their protection becomes useless the moment users share their recovery details online.
Deepfake Scam Targeting Ripple CEO Highlights Digital Impersonation Threats
Last month, Schwartz also drew attention to a deepfake video falsely portraying Ripple CEO Brad Garlinghouse. The manipulated video appeared to show Garlinghouse discussing XRP plans and encouraging viewers to join a fraudulent offer. Schwartz responded by posting a scam alert GIF and warning the XRP community to remain cautious.
His reaction underscored the rising threat of digital impersonation and misinformation in the crypto sector. The use of deepfake technology to mimic influential figures represents a dangerous escalation in scam tactics.
By blending realistic visuals with social engineering, fraudsters continue to blur the line between truth and deception. Schwartz’s repeated warnings serve as a crucial reminder for investors to stay vigilant and verify every communication before taking action.