Following the failure of FTX, sophisticated malicious outfits have turned their sights on cryptocurrency users.
Following the collapse of FTX, professional scam organisations are targeting cryptocurrency users, initiating millions of automated calls and text messages in an attempt to steal information and funds.
According to Clayton LiaBraaten, senior executive adviser at Truecaller, an app that helps identify scam callers and messages, scammers frequently closely follow crypto news to better prey on their victims:
“Fraudsters are drawn to volatility and current events. They have a lot of success whenever they can try to surf the contours of something very disruptive in the marketplace.”
Truecaller, according to LiaBraaten, saw an increase in scam communications involving Bitcoin and other cryptocurrencies when the market began to become volatile earlier in 2022.
He went on to say that “agents” attempting to steal funds launch millions of automated “robocalls” and texts in an attempt to capitalise on people’s “fear, curiosity, and sometimes generosity.”
Phone numbers can be obtained in a variety of ways, including data breaches that have exposed millions of phone numbers and vitools that scrape social media platforms for information.
Truecaller frequently sees imposter scams, in which a malicious actor pretends to represent a support desk or similar entity from a major crypto exchange or business. Scammers will also attempt to legitimise themselves by publishing their phone numbers on fake imitation websites.
Younger adults are more frequently targeted by fraudsters because “so much information is available about them because they put so much out there on social media,” according to LiaBraaten.
“They use the same handle for their Bitcoin forum as they do for TikTok and all these other social media platforms […] It is very simple to create a data graph on these people and then begin targeting them. There is simply so much material to social engineer against among the younger generations.”
Because of the abundance of information people post online, scammers can send messages or make phone calls that are relevant to their intended targets, making the malicious communications more convincing.
“They’re great psychologists and social engineers, so they’ll do everything they can to bring something contextually relevant,” LiaBraaten explained.
The initial call or text does not always result in financial fraud. According to LiaBraaten, agents first attempt to acquire or confirm information about their target in order to establish trust.
“They’re constructing more and more details about the persona, and once they have enough information, they will attempt to access your crypto wallet.”
“A lot of people don’t really understand cryptocurrency,” LiaBraaten explained. “Because they target vulnerable people, it’s unlikely that very savvy cryptocurrency enthusiasts will fall victim to this, because they’re pretty sharp about what they’re doing and very guarded.”
Regardless of a person’s ability to detect a scam, he said anyone who calls or sends messages requesting personal information or passwords should be avoided, and only official channels should be used.
“One of the worst things you can do is stay on the phone with these guys because it is their mission to drain you of your cryptocurrency. It only takes one vulnerable moment, one minute of second-guessing yourself, and they’re off.”
Binance CEO Changpeng “CZ” Zhao raised the alarm in February about a “massive” SMS phishing scam targeting Binance customers.
The scam involved sending users a text message with a link to cancel withdrawals, which directed them to a bogus website designed to steal their login information.
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