A new scam involving crypto wallets is spreading on YouTube. Unsuspecting users are being tricked into giving away sensitive information, resulting in the theft of their funds. According to a cybersecurity firm, Kaspersky, this scam uses a misleading multi-signature wallet trick and has gained attention from cryptocurrency users and security experts.
The Scam Unveiled
The scam targets crypto investors in the comment sections of popular YouTube videos about cryptocurrency.
Multi-signature wallets, or multi-sig wallets, use multiple private keys to authorize transactions. This makes them more secure for people who want to protect their funds. However, scammers have found a way to take advantage of this feature.
They post fake comments on crypto-related videos, pretending to offer “help” with wallet issues or providing fake airdrop opportunities. Once the victim unknowingly shares their seed phrase, the scammer can access their wallet and steal their funds. Unfortunately, these stolen funds are usually irretrievable due to the nature of blockchain transactions.
For clarification, a seed phrase helps a participant recover access to a crypto wallet. This phrase is randomly generated in a unique sequence from the dictionary. It is a key to unlocking the user’s wallet and accessing the funds therein.
Experts Say Scam Targeting Greed and Ignorance
Experts say this strategy could have been designed to target greedy users online seeking free lunch, only for them to end up as victims.
It highlights the constant innovation by malicious actors in their quest to perpetrate fraud. Meanwhile, users are advised never to share seed phrases with anyone, no matter how legitimate they may appear.
This has become necessary as millions have been lost to scammers via various means. As Kaspersky analyst Mikhail Sytnik concluded, staying vigilant and ethical is the best defense against falling victim to these schemes.
Crypto Hacks and Exit Scams Drain $129M From Investors
Online scams and security incidents continue to plague the crypto space despite calls for increased awareness by stakeholders.
In October, the losses from scams and hacks totaled $129 million. As reported by TheCoinRise, exit scams accounted for about $127 million. Flash loan attacks and exit scams accounted for $1.5 million and $1.2 million, respectively.
Radiant Capital, a lending protocol, suffered the highest loss. The platform lost 50 million following a breach on its BNB Chain and Arbitrum markets. As mentioned earlier, the hacker drained the amount despite halting market activities. Meanwhile, CertiK says the losses to malicious attackers in October remain the lowest within six months.
The post Kaspersky Exposes New Crypto Scam Targeting YouTube Comments appeared first on TheCoinrise.com.