Phantom Menace: Scammers Weaponize Fake Letters to Drain Crypto Wallets

Another day, another ’trust us, we’re legit’ scheme—this time targeting crypto holders with forged documents straight out of a bad spy novel.

How it works: Fraudsters send official-looking letters claiming wallet ’security breaches’ or ’compliance checks,’ complete with fake regulatory seals. Victims who bite get redirected to phishing sites that harvest keys faster than a Wall Street bonus disappears.

The irony? These scams thrive because users still treat crypto like traditional finance—where paper trails equal legitimacy. Newsflash: your Trezor doesn’t care about notary stamps.

Stay paranoid out there. (And maybe keep that seed phrase off your printer’s auto-feed.)

Users Tricked with Fake Letters

Cryptocurrency influencer Jacob Canfield exposed this new scam method via a post. The photos he shared depict a letter featuring the Ledger logo, instructing users to perform a “mandatory wallet verification.” To complete this, users are asked to scan a QR code, subsequently entering their recovery phrase.

The letter contains threatening language, such as warnings of restricted access to wallets and funds if the verification is not completed. This is designed to induce panic, prompting users to share their confidential details.

Ledger has made it clear that these letters do not have any association with them. The company stated, “It is not possible for Ledger or its representatives to call, message, or request your 24-word recovery phrase. Anyone doing so is undoubtedly a scammer.”

Are Leaked Data Being Reused?

According to Canfield’s claims, scammers acquired users’ physical addresses from an earlier data breach to send these letters. In July 2020, Ledger was a victim of a major data breach, exposing email addresses, phone numbers, and address information of over 273,000 users.

By the end of that year, these details had been freely circulated on dark web forums. Since then, many users have fallen victim to various scams. However, Ledger did not directly address Canfield’s allegations about how the addresses were obtained.

Besides physical letters, Ledger users had also been targeted via fake emails and social media accounts. Scammers impersonating company representatives directed users to malicious links.

Fraud Techniques Becoming More Sophisticated

According to blockchain analysis firm Chainalysis’s 2024 report, the revenue from fraudulent activities has reached approximately $12.4 billion. This figure highlights how scamming methods are becoming increasingly organized and convincing each year.

The use of physical letters marks a new level of sophistication in scam attempts. Due to widespread online warnings and increased digital security awareness, scammers seem to be reverting to less conspicuous, old-school methods.

Experts emphasize that crypto wallet recovery phrases should never be shared online or with third parties. It is essential for users to maintain security to prevent user errors that could jeopardize the high-level security provided by hardware wallets.