Crypto phishing scammers are reportedly making five-figure weekly incomes by posing as Coinbase support and exploiting leaked data to target high-ranking executives and software engineers in the crypto space.

This revelation came after Nick Neuman, CEO of Bitcoin self-custody solutions provider Casa, had an unexpected conversation with one of the scammers during a phishing attempt. Neuman shared the exchange in a video posted to X on November 20.

Scammer Claims $35,000 in Weekly Earnings

Instead of abruptly ending the call, the scammer openly discussed their operations when Neuman questioned the motivations behind their tactics. “We make a minimum of five figures a week; we hit $35,000 two days ago,” the scammer proudly stated.

According to the scammer, their targets are typically CEOs, CFOs, and software engineers. “We don’t call poor people,” they explained, emphasizing that their database focuses on individuals with assets of at least $50,000.

The scammer also revealed that they gathered target data from Unchained Capital, a Bitcoin financial services company, and assumed that most of their targets would have Coinbase accounts.

Advanced Phishing Tactics

The scammer explained that they use advanced tools such as “auto-doxxers” to collect further personal information, which is then used to craft phishing emails that appear to be sent directly from Coinbase. The phishing attacks typically involve sending victims malicious links disguised as security notifications.

The ultimate goal is to trick victims into transferring funds to wallets controlled by the scammers. To launder the stolen funds, the scammer admitted to using Tornado Cash, a crypto mixer, as well as Monero, a privacy-focused cryptocurrency. “After you hold it in XMR for a couple of days, that money is gone,” they said.

Once the funds are washed, they are converted to fiat currency using middlemen and hardware wallets like Ledger. This is notable, as Ledger itself has been the target of phishing campaigns since a database breach in 2020.

Crypto Industry Described as “Wild West”

Describing the ease of accessing sensitive company databases, the scammer referred to the crypto industry as the “Wild Wild West.” They mocked victims’ inability to recover stolen funds, saying, “If you lose $30,000-$40,000, who are you going to call? The crypto police?”

This conversation comes amid a surge in crypto phishing scams, which resulted in over $127 million in losses in Q3 2024 alone, according to Web3 security firm Scam Sniffer.

Ongoing Efforts to Combat Crypto Scams

Meanwhile, the Department of Homeland Security (DHS) has been working to disrupt such scams. Since 2021, DHS investigators have intercepted hundreds of crypto scam incidents, reclaiming billions in stolen cryptocurrency. This effort, led by the Homeland Security Investigations (HSI) Cyber Crimes Center, has been critical in protecting U.S. government agencies, which are primary targets of these cybercriminals.

Despite these efforts, phishing attacks continue to be a significant issue for crypto users, resulting in substantial losses. In September alone, over 10,000 individuals lost more than $46 million to such scams, according to Scam Sniffer.

The growing threat of phishing scams in the crypto space underscores the need for heightened awareness and stronger protective measures against these ongoing cyber threats.

The post Scammer Earning Five-Figure Weekly Profits by Impersonating Coinbase Support appeared first on Koinreport.