The XRP community was alerted to a fraudulent Loopring account scheme by Ripple CTO David Schwartz.
Con artists have been impersonating Ripple CEO Brad Garlinghouse in deep-fake videos.
A hack affecting Loopring's smart wallets resulted in asset theft and the suspension of operations.
Ripple CTO David Schwartz issues a warning to the XRP community and the larger cryptocurrency market after a recent scam. The scam used an account impersonating @loopringorg, the Loopring protocol's official handle. The fake account falsely claimed that Loopring had experienced a serious security breach, resulting in the loss of client funds and compensation claims.
Swift Action: Schwartz Exposes Fake X Account Scam
Schwartz swiftly flagged the post as a scam, emphasizing the importance of vigilance. The fake account has been suspended by the X team and Schwartz updated his initial alert with a link to a legitimate tweet from @loopringorg. This tweet provided accurate details about the incident and clarified the situation.
https://twitter.com/JoelKatz/status/1819164961291256098
In addition, Schwartz highlighted another scam that involved a direct message that claimed the recipient’s account was under investigation for copyright violations. The message included a link with a threat of suspension if not completed within 24 hours. Schwartz went on to share this to raise awareness that the post was noting that it was a scam.
Deepfake Targets Ripple CEO as Crypto Scams Persist
Furthermore, scammers have also used deepfake technology to target Brad Garlinghouse, the CEO of Ripple. A manipulated video surfaced in which a fake Garlinghouse encouraged viewers to invest their holdings with promises of doubling their returns. Garlinghouse later confirmed that the video was fraudulent.
https://twitter.com/official_trakx/status/1817213075079991777
Scammers continue to exploit the cryptocurrency space through various deceptive methods. These include creating fake trading platforms or counterfeit crypto wallets that closely mimic legitimate ones. Such sites often operate as phishing pages, where users unknowingly provide sensitive information, or as theft platforms, which initially allow small withdrawals before shutting down or blocking larger ones.
Loopring Breach Highlights Crypto Scams and Fake Apps
Other common scams are pump-and-dump schemes where scammers artificially rise a coin’s price before selling off their holdings, causing a sudden drop in value. Additionally, fake cryptocurrency apps on platforms like Google Play and the Apple App Store have tricked many users, despite being removed quickly. Scammers also impersonate celebrities or influencers to promote non-existent cryptocurrencies, creating sophisticated but fraudulent investment opportunities.
Recently, Loopring reported a breach involving its smart wallets, where hackers managed to impersonate wallet owners and withdraw assets. The attack compromised Loopring’s two-factor authentication service. The Loopring team has halted operations linked to this service and is working with security experts and law enforcement to investigate and resolve the breach.
Conclusion
In summary, Ripple CTO David Schwartz has warned the XRP community about a scam which involves a fake Loopring account. He went on to highlight the rise in cryptocurrency scams like deepfake videos and fake apps. The recent breach of Loopring's smart wallets, where hackers stole assets by exploiting two-factor authentication, ended up causing catastrophic financial disasters. This step underscores the need for heightened security and vigilance in the crypto industry.
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The post Crypto Scam Alert: Loopring Breach and Ripple Deepfake Debunked appeared first on Crypto News Land.
