Key Points:
Following the demise of FTX, professional scam groups are preying on cryptocurrency users, sending millions of automated texts and calls in an effort to steal information and money.
Scammers can send messages or make calls relevant to their intended targets thanks to the wealth of information individuals share online, making the fraudulent communications more believable.
Many people, according to LiaBraaten, “don’t fully grasp bitcoin.” They target the weak. Thus it’s doubtful that knowledgeable bitcoin enthusiasts will fall victim to this because they are highly watchful and astute with their money.
Following the demise of FTX, professional scam groups are preying on cryptocurrency users, sending millions of automated texts and calls in an effort to steal information and money.
Scammers frequently pay close attention to cryptocurrency news to better prey on their victims, according to Clayton LiaBraaten, senior executive adviser at Truecaller, an app that helps identify scam callers and messages.
“Fraudsters love volatility and current events. Anytime they can try to surf the contours of something very disruptive in the marketplace they have a great deal of success.”
When the market became volatile in 2022, LiaBraaten claimed that Truecaller also noticed an increase in fraudulent messages involving Bitcoin and other cryptocurrencies.
He continued by saying that “agents” who are ultimately aiming to steal money send out millions of automated “robocalls” and texts in an effort to capitalize on people’s “fear, curiosity, and occasionally charity.”
Numerous methods exist for obtaining phone numbers, including data breaches that have exposed millions of digits or tools that scrape social media sites for data.
“They use the same handle for their Bitcoin forum as they do their TikTok and across all these social media platforms […] It’s very easy to build a data graph on these individuals and then begin targeting them. There’s just so much material to social engineer against with the younger generations.”
Scammers can send messages or make calls relevant to their intended targets thanks to the wealth of information individuals share online, making the fraudulent communications more believable.
Since they are excellent social engineers and psychologists, LiaBraaten stated, “they will make every effort to provide something contextually appropriate.”
Financial fraud may not necessarily follow the original contact or text
According to LiaBraaten, agents will initially try to find out facts about their target in an effort to build trust.
“They’re building more and more details about the persona and when they gather enough information, then yes, they’re going to try to access your crypto wallet.”
Many people, according to LiaBraaten, “don’t fully grasp bitcoin.” They target the weak, thus it’s doubtful that knowledgeable bitcoin enthusiasts will fall victim to this because they are highly watchful and astute with their money.
Regardless of one’s ability to spot a scam, he advised people to avoid engaging with anyone who phones or contacts them asking for passwords or personal information and only to utilize legitimate channels.
“One of the worst things that you can do is stay on the phone with these guys because it is their mission to relieve you of your cryptocurrency. It just takes a vulnerable moment, one minute of second-guessing yourself, and then they’re off to the races.”
A “huge” SMS phishing scheme that targeted Binance consumers was brought to light by Changpeng “CZ” Zhao, CEO of Binance, in February.
The trick involves texting consumers a link to cancel withdrawals that would take them to a bogus website where their login information would be collected.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.
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