May 10, 2022, Tallinn: The number of major cryptocurrency scams has increased over the last few years. The CoinLoan fraud detection team’s timely and coordinated action prevented another big cryptocurrency theft from occurring in April 2022. What happened is as follows.

An email with a link containing phishing scam content was sent to CoinLoan’s team member, promising to download the Trezor Suite update. Its true purpose was to steal the wallet’s seed phrase. The attentive team member immediately alerted the colleagues of the breach attempt. The team reported the IP address first so that all following domains would be blocked as soon as possible. The second step was to notify VirusTotal, a service that scans suspicious files for malware and informs the security community. CoinLoan’s team was able to prevent hackers from gaining access to funds of hundreds and probably even thousands of Trezor wallet users in this quick and effective way.

By exploiting a popular newsletter website, bad actors gained access to users’ data, so neither Trezor nor CoinLoan are at fault. However, this is not meant to point fingers but to encourage users and crypto companies to seek the highest-leveled security.

In response to a question regarding the team’s fraud detection efforts, Max Sapelov, CoinLoan’s co-founder and CTO, said: “We are immensely proud of our fraud detection team. However, this incident does shed light on the inherent risks associated with (cold) non-custodial wallets, including software, connections to third-party vendors, and possible insider leaks. In contrast, custodial wallets such as CoinLoan often implement a series of checks and holds