Ledger Faulty Secure Element Phishing - Revision history

Azoundria at 19:26, 1 May 2023

2023-05-01T19:26:52Z

← Older revision		Revision as of 13:26, 1 May 2023
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	{{Imported Case Study\|source=https://www.quadrigainitiative.com/casestudy/ledgerfaultysecureelementphishing.php}}		{{Imported Case Study 2\|source=https://www.quadrigainitiative.com/casestudy/ledgerfaultysecureelementphishing.php}}
	{{Unattributed Sources}}		{{Unattributed Sources}}

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	In reality, users who downloaded the application would be then prompted to enter their seed phrase. The seed phrase would be transmitted to the hacker through Telegram. Hence, it was rather easy to shut down the Telegram channels where the information was to be transmitted and unlikely that anyone actually lost funds. Another limitation here is that the email addresses used by the scammers were believed to be from slack groups, so there is only a minimal overlap with actual Ledger users. No reports of actual loss appear to have come up in this case.		In reality, users who downloaded the application would be then prompted to enter their seed phrase. The seed phrase would be transmitted to the hacker through Telegram. Hence, it was rather easy to shut down the Telegram channels where the information was to be transmitted and unlikely that anyone actually lost funds. Another limitation here is that the email addresses used by the scammers were believed to be from slack groups, so there is only a minimal overlap with actual Ledger users. No reports of actual loss appear to have come up in this case.

	This is a global/international case not involving a specific country.		This is a global/international case not involving a specific country.<ref name="cryptoguruu-7483" /><ref name="ledgersupporttwitter-7484" /><ref name="redditold-7485" /><ref name="imgur-7486" /><ref name="m0zar7twitter-7487" /><ref name="pastebin-7488" /><ref name="ledger-7489" /><ref name="btchiptwitter-7490" /><ref name="cracklordmedium-7491" /><ref name="ledger-6398" /><ref name="financegates-7300" /><ref name="slashdot-7301" /><ref name="pcmag-6879" /><ref name="bitcointalk-7492" /><ref name="reddit-7493" />
	<ref name="cryptoguruu-7483" /><ref name="ledgersupporttwitter-7484" /><ref name="redditold-7485" /><ref name="imgur-7486" /><ref name="m0zar7twitter-7487" /><ref name="pastebin-7488" /><ref name="ledger-7489" /><ref name="btchiptwitter-7490" /><ref name="cracklordmedium-7491" /><ref name="ledger-6398" /><ref name="financegates-7300" /><ref name="slashdot-7301" /><ref name="pcmag-6879" /><ref name="bitcointalk-7492" /><ref name="reddit-7493" />

	== About Ledger ==		== About Ledger ==
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	!Description		!Description
	\|-		\|-
	\|October 25th, 2019 3:07:00 PM		\|October 25th, 2019 3:07:00 PM MDT
	\|Main Event		\|Main Event
	\|Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.		\|Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.
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	\|		\|
	\|}		\|}

			== Technical Details ==
			This section includes specific detailed technical analysis of any security breaches which happened. What specific software vulnerabilities contributed to the problem and how were they exploited?

	== Total Amount Lost ==		== Total Amount Lost ==
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	== Ongoing Developments ==		== Ongoing Developments ==
	What parts of this case are still remaining to be concluded?		What parts of this case are still remaining to be concluded?
			== General Prevention Policies ==
			Always double check news of vulnerabilities against the official websites of the product or service. Never download an application in an email or enter the seed phrase anywhere except the Ledger hardware wallet.
			== Individual Prevention Policies ==
			{{Prevention:Individuals:Placeholder}}

			{{Prevention:Individuals:End}}

			== Platform Prevention Policies ==
			{{Prevention:Platforms:Placeholder}}

			{{Prevention:Platforms:End}}

			== Regulatory Prevention Policies ==
			{{Prevention:Regulators:Placeholder}}

	== Prevention ~~Policies ==~~		{{Prevention:Regulators:End}}
	Always double check news of vulnerabilities against the official websites of the product or service. Never download an application in an email or enter the seed phrase anywhere except the Ledger hardware wallet.

	== References ==		== References ==
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	<ref name="m0zar7twitter-7487">[https://twitter.com/m0zar7/status/1188944082762162181 @m0zar7 Twitter] (Mar 27, 2022)</ref>		<ref name="m0zar7twitter-7487">[https://twitter.com/m0zar7/status/1188944082762162181 @m0zar7 Twitter] (Mar 27, 2022)</ref>

	<ref name="pastebin-7488">[https://~~pastebin~~.com/17FGmL4X Malicious ledger live autoIt code snippet - Pastebin.com] (Mar 27, 2022)</ref>		<ref name="pastebin-7488">[https://pastebin.com/17FGmL4X Malicious ledger live autoIt code snippet - Pastebin.com] (Mar 27, 2022)</ref>

	<ref name="ledger-7489">[https://www.ledger.com/a-closer-look-into-ledger-security-the-secure-element/ A Closer Look Into Ledger Security: the Secure Element \| Ledger] (Mar 27, 2022)</ref>		<ref name="ledger-7489">[https://www.ledger.com/a-closer-look-into-ledger-security-the-secure-element/ A Closer Look Into Ledger Security: the Secure Element \| Ledger] (Mar 27, 2022)</ref>

Azoundria at 06:02, 21 February 2023

2023-02-21T06:02:02Z

Azoundria: Created page with "{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/ledgerfaultysecureelementphishing.php}} LedgerMultiple Ledger users reported receiving a phishing email which attempted to convince them that their Ledger device might not be secure. It specifically provided a reasonably plausible hypothesis that the Secure Element might be defective in generating the random numbers, something which could possibly happen with sophisticate..."

2023-01-25T03:21:11Z

Created page with "{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/ledgerfaultysecureelementphishing.php}} thumb|LedgerMultiple Ledger users reported receiving a phishing email which attempted to convince them that their Ledger device might not be secure. It specifically provided a reasonably plausible hypothesis that the Secure Element might be defective in generating the random numbers, something which could possibly happen with sophisticate..."

New page

{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/ledgerfaultysecureelementphishing.php}}

[[File:Ledger.jpg|thumb|Ledger]]Multiple Ledger users reported receiving a phishing email which attempted to convince them that their Ledger device might not be secure. It specifically provided a reasonably plausible hypothesis that the Secure Element might be defective in generating the random numbers, something which could possibly happen with sophisticated tampering in the supply chain, but has not yet been observed as a practical and economic attack vector.

In reality, users who downloaded the application would be then prompted to enter their seed phrase. The seed phrase would be transmitted to the hacker through Telegram. Hence, it was rather easy to shut down the Telegram channels where the information was to be transmitted and unlikely that anyone actually lost funds. Another limitation here is that the email addresses used by the scammers were believed to be from slack groups, so there is only a minimal overlap with actual Ledger users. No reports of actual loss appear to have come up in this case.

This is a global/international case not involving a specific country.

== About Ledger ==
"Based in France, Ledger is the largest cryptocurrency hardware wallet company." "Ledger is a hardware cryptocurrency wallet that is used to store, manage, and sell cryptocurrency. The funds held in these wallets are secured using a 24-word recovery phrase and an optional secret passphrase that only the owner knows."

"Ledger offers two products, the Nano S and Nano X, that can store the digital keys used to secure crypto wallets. The devices can be used with a variety of cryptocurrencies, are compatible with numerous apps, and are supposed to offer a safe way to manage crypto without compromising too much on convenience. Ledger says on its website that it has sold 1.5 million products to customers in 165 countries to date."

"A new phishing attempt is being sent by email to our customers, from an unknown party impersonating Ledger. Please do NOT open the attached executable file!"

"To clarify the situation - it appears that the targeted email addresses were taken from a set of Crypto-related-Slack-channels. Our community is helping us collecting additional information on the matter." "As OP said " The email address was used for Slack which has nothing to do with anything I did to buy this ledger wallet." - they're just scammers fishing around with likely some database listing leaked e-mail addresses related to crypto sites." "Unfortunately it was trivial to query all e-mail addresses for users in a Slack group at some point. Guess some lists were made for that kind of purpose."

"This email is far more convincing than the average crypto scam email. The email comes from “supportledger.com” and it has full SPF/DKIM verification for that domain, meaning most email services won’t throw it into your junk/spam folder. If you browse to that website, it redirects to the official Ledger support website (which makes no mention of such a vulnerability under announcements, how strange). The domain however is not owned or part of Ledger at all and thus fully authenticating the domain to send emails is not difficult."

"In the email, users are notified of how their wallet – either the Nano S or Nano X – contains a critical vulnerability that needs to be addressed. The website makes mention of a secure RNG chip vulnerability, that can only be resolved through a software-based check of the device."

"Today I received an email that appears as though it’s from Ledger. The header claims “IMPORTANT: Ledger Nano S and Ledger Nano X SECURE RNG CHIP CRITICAL VULNERABILITY”. This however, is not true."

"Inside Ledger hardware wallet, we use a Secure Element chip to generated and store the private keys for your crypto assets. Unfortunately, some chips, a limited number, were found to be defective by the external company commissioned by Ledger for the production. The problem identified concerns the lack of a correct source of entropy for use by the random number generator may lead the the generation of predictable sequences of numbers and therefore of private keys by malicious users. Ledger is actively working on the problem to replace all defective devices. Please check now if your device is defective with the Ledger SE tool. We apologize for the inconvenience."

"The email claims that a small batch of Ledgers have a compromised secure enclave chip and that you can download a tool to check if your Ledger was from this bad batch. Unfortunately, this tool is malware and it seems as though the purpose is to try and get your wallet’s seed." "For novice users without much technical knowledge, that may appear to be a plausible explanation." "Something that is actually probably possible to some extent, certainly somewhat believable."

"In the real world, however, it is a blatant scam designed to make users lose their cryptocurrency balances." "When you run the tool, it asks you to input your 24 word phrase to check your Ledger chip. Anyone trained well enough should have extreme alarm bells ringing at this point."

"Looks like one of the dropped executables in this phishing campaign - "Ledger SE.exe" uses the telegram bots listed in this code snippet as C2. Possible to takedown these telegram bots? @telegram @Ledger." "Likely a compiled AutoIT Script communicates to api.telegram.com - probably sends your 24 words to them through telegram. [D]ownloads a updates.rar file, and extracts it with downloaded rar.exe to %APPDATA%\Ledger\ to launch a passphrase stealer. [M]akes POST request with usernames: gksn7bot & jmnl17bot (likely to telegram)."

"And it probably sends the 24 words off to a remote address the moment return is pressed. It's sad to say that some will probably fall for this regardless of how many times they read in official Ledger documentation that the 24 words must be entered on the device and not the computer."

This is a global/international case not involving a specific country.

The background of the exchange platform, service, or individuals involved, as it would have been seen or understood at the time of the events.

Include:

* Known history of when and how the service was started.
* What problems does the company or service claim to solve?
* What marketing materials were used by the firm or business?
* Audits performed, and excerpts that may have been included.
* Business registration documents shown (fake or legitimate).
* How were people recruited to participate?
* Public warnings and announcements prior to the event.

Don't Include:

* Any wording which directly states or implies that the business is/was illegitimate, or that a vulnerability existed.
* Anything that wasn't reasonably knowable at the time of the event.
There could be more than one section here. If the same platform is involved with multiple incidents, then it can be linked to a main article page.

== The Reality ==
This sections is included if a case involved deception or information that was unknown at the time. Examples include:

* When the service was actually started (if different than the "official story").
* Who actually ran a service and their own personal history.
* How the service was structured behind the scenes. (For example, there was no "trading bot".)
* Details of what audits reported and how vulnerabilities were missed during auditing.

== What Happened ==
The specific events of the loss and how it came about. What actually happened to cause the loss and some of the events leading up to it.
{| class="wikitable"
|+Key Event Timeline - Ledger Faulty Secure Element Phishing
!Date
!Event
!Description
|-
|October 25th, 2019 3:07:00 PM
|First Event
|This is an expanded description of what happened and the impact. If multiple lines are necessary, add them here.
|-
|
|
|
|-
|
|
|
|}

== Total Amount Lost ==
The total amount lost is unknown.

How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?

== Immediate Reactions ==
How did the various parties involved (firm, platform, management, and/or affected individual(s)) deal with the events? Were services shut down? Were announcements made? Were groups formed?

== Ultimate Outcome ==
What was the end result? Was any investigation done? Were any individuals prosecuted? Was there a lawsuit? Was any tracing done?

== Total Amount Recovered ==
It is unknown how much was recovered.

What funds were recovered? What funds were reimbursed for those affected users?

== Ongoing Developments ==
What parts of this case are still remaining to be concluded?

== Prevention Policies ==
Always double check news of vulnerabilities against the official websites of the product or service. Never download an application in an email or enter the seed phrase anywhere except the Ledger hardware wallet.

== References ==
[https://www.cryptoguruu.com/emails-claiming-your-ledger-hardware-wallet-is-faulty-are-part-of-a-scam/ Emails Claiming Your Ledger Hardware Wallet is Faulty are Part of a Scam - CryptoGuru] (Mar 19)

[https://twitter.com/Ledger_Support/status/1187838098505457664 @Ledger_Support Twitter] (Mar 27)

[https://old.reddit.com/r/ledgerwallet/comments/dn389a/received_email_security_vulnerability_ledger_nano/ Received email: Security Vulnerability: Ledger Nano X and Ledger Nano S : ledgerwallet] (Mar 27)

[https://i.imgur.com/GiRNknL.png https://i.imgur.com/GiRNknL.png] (Mar 27)

[https://twitter.com/m0zar7/status/1188944082762162181 @m0zar7 Twitter] (Mar 27)

[https://pastebin.com/17FGmL4X Malicious ledger live autoIt code snippet - Pastebin.com] (Mar 27)

[https://www.ledger.com/a-closer-look-into-ledger-security-the-secure-element/ A Closer Look Into Ledger Security: the Secure Element | Ledger] (Mar 27)

[https://twitter.com/BTChip/status/1187993912125939714 @BTChip Twitter] (Mar 27)

[https://medium.com/cracklord/beware-of-well-executed-ledger-phishing-email-92402ad25293 Beware Of Well Executed Ledger Phishing Email] (Mar 27)

[https://www.ledger.com/ledger-live Ledger Live : Most trusted & secure crypto wallet | Ledger] (Feb 13)

[https://www.financegates.net/2020/12/23/ledger-refuses-refunds-tells-clients-bank-vault-is-more-secure/ Ledger Refuses Refunds, Tells Clients “Bank Vault Is More Secure” | Financegates] (Mar 19)

[https://it.slashdot.org/story/20/12/21/2139218/physical-addresses-of-270k-ledger-owners-leaked-on-hacker-forum Physical Addresses of 270K Ledger Owners Leaked On Hacker Forum - Slashdot] (Mar 19)

[https://www.pcmag.com/news/scammers-are-using-fake-devices-to-steal-cryptocurrency-wallets Scammers Are Using Fake Devices to Steal Cryptocurrency Wallets | PCMag] (Mar 6)

[https://bitcointalk.org/index.php?topic=5196055.0 {Warning}: Phishing attempt Ledger Nano S/X] (Mar 27)

[https://www.reddit.com/r/CryptoCurrency/comments/dnb5lz/ledger_users_dont_be_fooled_by_phishing/ Ledger users, don't be fooled by phishing : CryptoCurrency] (Mar 27)

← Older revision		Revision as of 00:02, 21 February 2023
Line 1:		Line 1:
	{{Imported Case Study\|source=https://www.quadrigainitiative.com/casestudy/ledgerfaultysecureelementphishing.php}}		{{Imported Case Study\|source=https://www.quadrigainitiative.com/casestudy/ledgerfaultysecureelementphishing.php}}
			{{Unattributed Sources}}

	[[File:Ledger.jpg\|thumb\|Ledger]]Multiple Ledger users reported receiving a phishing email which attempted to convince them that their Ledger device might not be secure. It specifically provided a reasonably plausible hypothesis that the Secure Element might be defective in generating the random numbers, something which could possibly happen with sophisticated tampering in the supply chain, but has not yet been observed as a practical and economic attack vector.		[[File:Ledger.jpg\|thumb\|Ledger]]Multiple Ledger users reported receiving a phishing email which attempted to convince them that their Ledger device might not be secure. It specifically provided a reasonably plausible hypothesis that the Secure Element might be defective in generating the random numbers, something which could possibly happen with sophisticated tampering in the supply chain, but has not yet been observed as a practical and economic attack vector.
Line 6:		Line 7:

	This is a global/international case not involving a specific country.		This is a global/international case not involving a specific country.
			<ref name="cryptoguruu-7483" /><ref name="ledgersupporttwitter-7484" /><ref name="redditold-7485" /><ref name="imgur-7486" /><ref name="m0zar7twitter-7487" /><ref name="pastebin-7488" /><ref name="ledger-7489" /><ref name="btchiptwitter-7490" /><ref name="cracklordmedium-7491" /><ref name="ledger-6398" /><ref name="financegates-7300" /><ref name="slashdot-7301" /><ref name="pcmag-6879" /><ref name="bitcointalk-7492" /><ref name="reddit-7493" />

	== About Ledger ==		== About Ledger ==
Line 47:		Line 49:

	Don't Include:		Don't Include:

	* Any wording which directly states or implies that the business is/was illegitimate, or that a vulnerability existed.		* Any wording which directly states or implies that the business is/was illegitimate, or that a vulnerability existed.
	* Anything that wasn't reasonably knowable at the time of the event.		* Anything that wasn't reasonably knowable at the time of the event.
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	\|-		\|-
	\|October 25th, 2019 3:07:00 PM		\|October 25th, 2019 3:07:00 PM
	\|~~First~~ Event		\|Main Event
	\|~~This is an expanded~~ description of what happened and the impact. If multiple lines are necessary, add them here.		\|Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.
	\|-
	\|
	\|
	\|
	\|-		\|-
	\|		\|
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	== Total Amount Recovered ==		== Total Amount Recovered ==
	~~It is unknown how much was~~ recovered.		There do not appear to have been any funds recovered in this case.

	What funds were recovered? What funds were reimbursed for those affected users?		What funds were recovered? What funds were reimbursed for those affected users?
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	== References ==		== References ==
	[https://www.cryptoguruu.com/emails-claiming-your-ledger-hardware-wallet-is-faulty-are-part-of-a-scam/ Emails Claiming Your Ledger Hardware Wallet is Faulty are Part of a Scam - CryptoGuru] (Mar 19)		<references><ref name="cryptoguruu-7483">[https://www.cryptoguruu.com/emails-claiming-your-ledger-hardware-wallet-is-faulty-are-part-of-a-scam/ Emails Claiming Your Ledger Hardware Wallet is Faulty are Part of a Scam - CryptoGuru] (Mar 19, 2022)</ref>

	[https://twitter.com/Ledger_Support/status/1187838098505457664 @Ledger_Support Twitter] (Mar 27)		<ref name="ledgersupporttwitter-7484">[https://twitter.com/Ledger_Support/status/1187838098505457664 @Ledger_Support Twitter] (Mar 27, 2022)</ref>

	[https://old.reddit.com/r/ledgerwallet/comments/dn389a/received_email_security_vulnerability_ledger_nano/ Received email: Security Vulnerability: Ledger Nano X and Ledger Nano S : ledgerwallet] (Mar 27)		<ref name="redditold-7485">[https://old.reddit.com/r/ledgerwallet/comments/dn389a/received_email_security_vulnerability_ledger_nano/ Received email: Security Vulnerability: Ledger Nano X and Ledger Nano S : ledgerwallet] (Mar 27, 2022)</ref>

	[https://i.imgur.com/GiRNknL.png https://i.imgur.com/GiRNknL.png] (Mar 27)		<ref name="imgur-7486">[https://i.imgur.com/GiRNknL.png https://i.imgur.com/GiRNknL.png] (Mar 27, 2022)</ref>

	[https://twitter.com/m0zar7/status/1188944082762162181 @m0zar7 Twitter] (Mar 27)		<ref name="m0zar7twitter-7487">[https://twitter.com/m0zar7/status/1188944082762162181 @m0zar7 Twitter] (Mar 27, 2022)</ref>

	[https://pastebin.com/17FGmL4X Malicious ledger live autoIt code snippet - Pastebin.com] (Mar 27)		<ref name="pastebin-7488">[https://pastebin.com/17FGmL4X Malicious ledger live autoIt code snippet - Pastebin.com] (Mar 27, 2022)</ref>

	[https://www.ledger.com/a-closer-look-into-ledger-security-the-secure-element/ A Closer Look Into Ledger Security: the Secure Element \| Ledger] (Mar 27)		<ref name="ledger-7489">[https://www.ledger.com/a-closer-look-into-ledger-security-the-secure-element/ A Closer Look Into Ledger Security: the Secure Element \| Ledger] (Mar 27, 2022)</ref>

	[https://twitter.com/BTChip/status/1187993912125939714 @BTChip Twitter] (Mar 27)		<ref name="btchiptwitter-7490">[https://twitter.com/BTChip/status/1187993912125939714 @BTChip Twitter] (Mar 27, 2022)</ref>

	[https://medium.com/cracklord/beware-of-well-executed-ledger-phishing-email-92402ad25293 Beware Of Well Executed Ledger Phishing Email] (Mar 27)		<ref name="cracklordmedium-7491">[https://medium.com/cracklord/beware-of-well-executed-ledger-phishing-email-92402ad25293 Beware Of Well Executed Ledger Phishing Email] (Mar 27, 2022)</ref>

	[https://www.ledger.com/ledger-live Ledger Live : Most trusted & secure crypto wallet \| Ledger] (Feb 13)		<ref name="ledger-6398">[https://www.ledger.com/ledger-live Ledger Live : Most trusted & secure crypto wallet \| Ledger] (Feb 13, 2022)</ref>

	[https://www.financegates.net/2020/12/23/ledger-refuses-refunds-tells-clients-bank-vault-is-more-secure/ Ledger Refuses Refunds, Tells Clients “Bank Vault Is More Secure” \| Financegates] (Mar 19)		<ref name="financegates-7300">[https://www.financegates.net/2020/12/23/ledger-refuses-refunds-tells-clients-bank-vault-is-more-secure/ Ledger Refuses Refunds, Tells Clients “Bank Vault Is More Secure” \| Financegates] (Mar 19, 2022)</ref>

	[https://it.slashdot.org/story/20/12/21/2139218/physical-addresses-of-270k-ledger-owners-leaked-on-hacker-forum Physical Addresses of 270K Ledger Owners Leaked On Hacker Forum - Slashdot] (Mar 19)		<ref name="slashdot-7301">[https://it.slashdot.org/story/20/12/21/2139218/physical-addresses-of-270k-ledger-owners-leaked-on-hacker-forum Physical Addresses of 270K Ledger Owners Leaked On Hacker Forum - Slashdot] (Mar 19, 2022)</ref>

	[https://www.pcmag.com/news/scammers-are-using-fake-devices-to-steal-cryptocurrency-wallets Scammers Are Using Fake Devices to Steal Cryptocurrency Wallets \| PCMag] (Mar 6)		<ref name="pcmag-6879">[https://www.pcmag.com/news/scammers-are-using-fake-devices-to-steal-cryptocurrency-wallets Scammers Are Using Fake Devices to Steal Cryptocurrency Wallets \| PCMag] (Mar 6, 2022)</ref>

	[https://bitcointalk.org/index.php?topic=5196055.0 {Warning}: Phishing attempt Ledger Nano S/X] (Mar 27)		<ref name="bitcointalk-7492">[https://bitcointalk.org/index.php?topic=5196055.0 {Warning}: Phishing attempt Ledger Nano S/X] (Mar 27, 2022)</ref>

	[https://www.reddit.com/r/CryptoCurrency/comments/dnb5lz/ledger_users_dont_be_fooled_by_phishing/ Ledger users, don't be fooled by phishing : CryptoCurrency] (Mar 27)		<ref name="reddit-7493">[https://www.reddit.com/r/CryptoCurrency/comments/dnb5lz/ledger_users_dont_be_fooled_by_phishing/ Ledger users, don't be fooled by phishing : CryptoCurrency] (Mar 27, 2022)</ref></references>