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Duckett, based in Charlotte, North Carolina, believed his digital assets were secure. They were stored in a hardware wallet — a physical device designed to keep crypto offline and out of reach of hackers.
But the device was not hacked — Duckett unlocked it himself. Here’s how scammers persuaded him to do it.
The initial contact with the scammers
On a Friday night in March of last year, Duckett received a phone call from someone claiming to work for Ledger, the maker of his crypto wallet.
After introducing himself as “Benjamin,” the caller said his funds were “in danger of being stolen,” Duckett reported to Charlotte’s WBTV.
The caller provided a security protocol. Then a verification code. There were three representatives. The process sounded structured and professional. It was believable. Duckett was directed to a website to secure his funds.
The scammers’ goal was simple: Get Duckett to enter his 24-word seed phrase — the master key to his wallet — into a fake website. Whoever controls the seed phrase controls the funds.
By the time of the third call, Duckett had already invested time and had followed instructions.
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Hanging up would feel abrupt and rude. These people were trying to help him.
Entering the seed phrase felt like finishing what he had started.
That was the feeling the scammers had counted on.
Moments later, his crypto was gone. “I looked on the XRP Ledger ... and I had saved my wallet address in there, and all of the funds that were in my wallet were gone,” recalled Duckett.
“I’ve really beaten myself up quite a bit about this.” But similar scams are on the rise, as is the number of victims.
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Not a technical failure but a con
Hardware wallets are viewed as one of the safest ways to store digital assets because they don't connect directly to the internet. They are a great defense against malware and hacking.
But no hardware or software wallet can protect against "social engineering" — manipulating someone into revealing sensitive information.
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"To make you let your guard down ... [scammers] play to your heart versus your mind. This can be based on both positive and negative emotions," warns the Federal Reserve (2).
That's what happened to Duckett. And once someone convinces you to hand over your seed phrase, the security features of a wallet no longer matter.
As crypto gains investors, scammers gain targets
Cryptocurrency scams are growing: For 2024, the FBI reported $9.3 billion in losses attributed to cryptocurrency-related scams. That’s a 66% increase from 2023 (3).
In January 2026, another victim lost $282 million in a similar scam (4).
Some investors choose to hold their own crypto rather than leave it on an exchange. Self-custody means control. It also means total responsibility.
Unlike traditional banks, there's no fraud department to call. No transaction reversal process. Once a seed phrase is compromised and funds are transferred, recovery is nearly impossible.
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Throughout the entire 10-minute conversation, Duckett never ended the interaction. Every moment — including when he entered his seed phrase — was also a chance to disengage.
Scams like this don't rely on tech skills. They rely on momentum. Each step feels reasonable as it builds on the last step.
While the most critical moment is when money leaves, the scam succeeds because earlier moments condition victims to keep going rather than disrupt the momentum.
A spokesperson for Ledger also said, “Ledger consistently reminds users that we will never under any circumstances ask for their 24 words. We encourage users to exercise vigilance, and we will never contact them by phone.”
Read More: Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it
Here's what you need to know when investing in crypto:
- No legitimate company will ever ask for your recovery or seed phrase.
- Urgency is a red flag. Pressure is part of a scammer's script.
- If you receive an unsolicited call, hang up and contact the company using the official number on its website (these can also be spoofed, so verify this is indeed the correct URL).
- Feeling awkward about ending a call is far cheaper than the regret afterward.
- Security in crypto isn't just about technical safeguards.
Security is also recognizing when your own politeness, trust and willingness to cooperate are being used against you. When confronted with scammers trying to steal your funds, you should give yourself permission to hang up as quickly as possible. In this case, the less you say and do, the better.
As Duckett learned the hard way, “Every dime that I put into that I worked for. I traded my time, my sweat and my effort” (1). The cost of losing the funds extends beyond the mere value of the crypto.
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
WBTV (1); The Federal Reserve (2); Internet Crime Complaint Center (3); Yahoo!Finance (4)
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For more than 10 years Lawrence has been writing about cybersecurity and cyber scams. He works closely with security experts and tech-industry professionals and translates their knowledge into content that all readers can understand and apply.
