July 31, 2025
5 min read
Caroline Hicks
A Charlotte man lost over million in a crypto scam involving fake Ledger calls. Learn how to protect yourself from similar fraud.
A Charlotte man is warning others after losing over $1 million in cryptocurrency this year due to a sophisticated scam. Gene Duckett recounted the incident, which began with a phone call from someone claiming to be from Ledger, a well-known hardware wallet manufacturer.
The scammer falsely claimed Duckett's funds were in danger and directed him to a fraudulent website to "secure" them. The perpetrators then provided a security code to build trust during subsequent calls. Reassured by the correct security code from a second caller, Duckett entered his crucial seed phrase on the fake website.
Shortly after, a third caller informed him that his funds were gone. Duckett immediately checked his XRP Ledger and discovered all his cryptocurrency had been drained. The scammer then abruptly ended the call, leaving Duckett to face the devastating loss.
This incident serves as a stark reminder of the evolving nature of cryptocurrency scams and underscores the absolute importance of never sharing your seed phrase or private keys with anyone.
You can watch a full report on WBTV at 11 p.m. on Thursday, Aug. 7, for consumer investigator Caroline Hicks’ in-depth story, which will include actionable steps to protect yourself from similar threats.
You can stream live on WBTV at https://wbtv.com/livestream, or through WBTV’s mobile and streaming apps.
Source: WBTV
Source: WBTV
Frequently Asked Questions (FAQ)
How did the scammer convince Gene Duckett to reveal his seed phrase?
The scammer impersonated a representative from Ledger, a trusted hardware wallet company. They convinced Duckett that his funds were in danger and directed him to a fake website. The use of a seemingly legitimate security code provided by a second caller helped to build trust, leading Duckett to enter his seed phrase on the fraudulent site.What is a seed phrase and why is it so important?
A seed phrase, also known as a recovery phrase or mnemonic phrase, is a list of words that can be used to generate your cryptocurrency wallet's private keys. It's essentially the master key to your crypto assets. If someone obtains your seed phrase, they can access and steal all the funds in your wallet, which is why it is critical to keep it secret and secure.What are common tactics used in cryptocurrency scams like this one?
Common tactics include impersonating well-known companies or authorities, creating a sense of urgency or fear (e.g., funds are in danger), directing victims to fake websites that mimic legitimate ones, and using social engineering techniques like providing verification codes to build trust.How can I protect myself from similar cryptocurrency scams?
- Never share your seed phrase or private keys: Legitimate platforms or companies will never ask for this information.
- Verify official websites: Always double-check the URL before entering any sensitive information. Scammers often use slightly altered URLs to trick users.
- Be wary of unsolicited calls or messages: Especially those claiming your funds are at risk or offering immediate help with your crypto.
- Use hardware wallets: For significant amounts of cryptocurrency, hardware wallets offer an extra layer of security by keeping your private keys offline.
- Educate yourself: Stay informed about common scam tactics in the crypto space.
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