Crypto scam
Nearly 45% of Ireland’s investment fraud cases involve cryptocurrencies
Published
4 weeks agoon
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adminIreland’s national police force has warned that almost half of all reported investment fraud cases involved cryptocurrencies.
According to a report from the Irish Independent, 44% of all investment fraud incidents in Ireland between January 2020 and August 2024 involved Bitcoin (BTC) and other cryptocurrencies. Most cases involved scammers posing as investment managers and defrauding victims by “cloning webpages and targeting victims through online and social media adverts.”
Scammers managed to steal over €75 million (roughly $83 million) from over 1,117 victims between January 2020 and August 2024, with €13.5 million stolen so far this year. 2023 saw the most losses, with €28 million stolen, a figure higher than the combined total for 2021 and 2022.
The report detailed one crypto-related incident where a victim saw an advertisement on a social media platform offering an investment opportunity into a mobile app-based trading platform. Upon signing up for the scheme, the scammers contacted the victim and socially engineered him into transferring €45,000 (roughly $50,000).
The scammers later informed the victim that their investments had supposedly generated over €727,000 (approximately $808,620) in profits, allegedly held in (USDC) stablecoin within an Ethereum-based Atomic Wallet. However, when the victim tried to withdraw the funds, they were asked to pay an additional $40,000 in dirty tax to gain access to the funds.
A dirty tax involves scammers falsely claiming that a victim must pay a fee or tax to access funds or profits. This is typical in investment fraud cases, as seen in a warning issued by the Washington State Department of Financial Institutions in July. In this case, scammers tricked victims into dubious crypto trading-related investments but froze their accounts when they tried to cash out their profits, demanding additional funds.
Michael Cryan, Detective Superintendent of the Garda National Economic Crime Bureau, warned that the scammers usually target “ordinary, decent people” and urged caution when transferring money internationally.
“The fraudsters involved in fraudulent investment schemes will sound convincing and claim to have insider knowledge but they are career criminals that are following a well-rehearsed script.”
Michael Cryan, Detective Superintendent of the Garda National Economic Crime Bureau
Crypto investment scams have become increasingly prevalent across various regions, with fraudsters enticing victims with promises of substantial returns. One of the largest crackdowns in recent times involved the Australian Securities & Investments Commission, which took down 615 websites linked to crypto investment scams.
Before that, Australia’s competition regulator sued Meta over a surge in Facebook advertisements that promoted crypto scams.
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Binance Alerts Users To Malware Risks in Crypto Withdrawals
Published
5 days agoon
September 14, 2024By
adminBinance crypto exchange has issued a warning about an ongoing malware threat that manipulates cryptocurrency withdrawal addresses, posing significant financial risks to users. The exchange has observed an increase in such malicious activities, prompting a robust response to safeguard user transactions.
Binance Issues Alert on Malware Threats to Crypto Wallets
In a recent blog post, Binance detailed how the malware known as “Clipper” is affecting the crypto community. This malware intercepts and alters clipboard data to change cryptocurrency addresses copied by users during transactions.
As a result, funds intended for legitimate recipients are misdirected to addresses controlled by attackers. The security team at Binance has enhanced monitoring to detect and prevent these alterations.
Furthermore, the company has committed to educating its users about recognizing and mitigating such threats. The exchange emphasizes the importance of verifying the authenticity of wallet addresses before executing transactions. It advises double-checking addresses manually and avoiding the use of clipboard for transactions when possible.
Enhanced Security Measures and User Guidance
In addition, Binance has implemented several security measures in response to the rising threat from malicious software. One primary strategy is the blacklisting of suspicious addresses identified as part of the scam. This preventive measure has thwarted numerous transactions that would have resulted in unauthorized withdrawals.
The cryptocurrency exchange is also actively engaging with its user base, issuing notifications to those potentially affected by such malware. The exchange platform encourages users to report any suspicious activity immediately, enabling the security team to take swift action.
Moreover, the exchange recommends that users install and maintain reputable security software, which can provide an additional layer of defense by detecting and removing malware.
Preventative Strategies to Combat Crypto Scams
To combat the threat of this crypto scam, Binance advocates a proactive approach to online security. Users are urged to verify the sources of any downloadable apps or plugins, sticking to official and reputable outlets. Regular updates to security software can also help protect against the latest threats.
More so, this week, the American division of the crypto exchange, BinanceUS, partnered with digital asset custody firm Fireblocks. This collaboration aims to improve the security of customer assets against crypto scams using sophisticated wallet technologies.
Similarly, to combat crypto scams, the Commodity Futures Trading Commission (CFTC) launched educational collaborations with both federal and private entities to inform the public about prevalent scams, such as “pig butchering” and other deceptive schemes.
Ronny Mugendi
Ronny Mugendi is a seasoned crypto journalist with four years of professional experience, having contributed significantly to various media outlets on cryptocurrency trends and technologies. His work includes notable contributions to Cryptopolitan and Coingape News Media, where he shares his insights on the latest developments in the cryptocurrency market. Outside of his journalism career, Ronny enjoys the thrill of bike riding, exploring new trails and landscapes.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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Americans lost over $5.6b in crypto scams in 2023, FBI says
Published
1 week agoon
September 10, 2024By
adminCrypto-related scams and fraud surged last year, with losses skyrocketing 45% in 2023 compared to the previous year, according to a new FBI report.
As crypto gains popularity in the United States, it also brings a rise in crypto scams. According to an FBI report released Sept. 9, the total losses to these scams exceeded $5.6 billion in 2023.
In 2023, the FBI Internet Crime Complaint Center received more than 69,000 complaints from the public regarding financial fraud involving cryptocurrencies, like Bitcoin (BTC), Ethereum (ETH), or Tether (USDT).
Investment scams were the most costly, accounting for 71% of the total losses, or about $3.96 billion. Call center fraud and government impersonation scams followed, contributing to 10% of the losses.
The most vulnerable demographic appears to be individuals over 60, who reported the highest number of complaints. According to the FBI, their collective losses surpassed $1.6 billion.
Different types of crypto scams
Scammers often establish trust through dating apps or social media before luring victims into fraudulent cryptocurrency investments. Some of the scams highlighted by the FBI include investment scams, lottery scams, romance scams, credit card fraud, extortion, and ransomware.
Some of these scams like romance scams, often dubbed as pig butchering scams, involve fraudsters befriending victims under the pretense of a potential love interest.
Victims may be allowed to withdraw small sums to build credibility, but they eventually find themselves duped into larger losses. In some cases, fraudulent recovery services that promise to retrieve their stolen funds further exploit the victims.
The FBI urged the public to exercise extreme caution when approached with investment opportunities by individuals they have only met online, emphasizing that anyone can be a target.
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Are Bitcoin ATMs A Hidden Threat To Cryptocurrency Security?
Published
1 week agoon
September 10, 2024By
adminThe Bitcoin ATM has gained significant popularity recently, especially with the growing adoption of digital assets globally. However, with its rising popularity, concerns are also increasing over its potential impact on crypto security. A recent US FTC report highlights the surge in scams and vulnerabilities, sparking concerns for the users.
Bitcoin ATMs And Their Impact On Crypto Security
The Federal Trade Commission (FTC) has flagged BTC ATMs as a major tool for scammers. According to a recent FTC report, fraudsters are increasingly using these machines to trick people into depositing cash directly into their crypto wallets.
Typically, scammers impersonate officials, warn victims about supposed financial threats, and advise them to deposit money into the payment instrument to “protect” their funds. However, in turn, these funds go straight to the scammer’s wallet, with no chance of recovery.
Meanwhile, the FTC’s data shows a staggering rise in reported losses, with over $110 million lost to Bitcoin ATM scams since 2020. In just the first six months of 2024, losses surpassed $65 million, affecting consumers of all ages.
The median loss reported was $10,000, with older adults over 60 being particularly vulnerable. These scams often involve government impersonation, business fraud, or fake tech support, exploiting victims’ fears to gain access to their money.
However, to protect against these schemes, the FTC advises users never to respond to unexpected messages, avoid withdrawing cash due to unsolicited calls, and verify any suspicious claims independently. The report said that real businesses and government agencies will never demand payments through this BTC payment option, making it crucial for consumers to recognize and avoid these deceptive tactics.
Meanwhile, last month, German authorities targeted unauthorized crypto ATMs, seizing 13 machines from 35 various locations and impounding a staggering $28 million in cash. This enforcement action highlights the country’s efforts to regulate the use of cryptocurrency ATMs and prevent illicit activities.
Why Are Crypto Hackers Targeting The BTC Payment Option?
Beyond scams, Bitcoin ATMs also pose significant cybersecurity risks. Experts warn that these machines are especially vulnerable to both physical and digital attacks. Unlike traditional ATMs, these alternatives are prime targets for hackers due to the high value of cryptocurrencies.
A recent CNBC report cites Timothy Bates, a cybersecurity professor, who points out that malware attacks on these machines can capture private keys, steal funds, or manipulate transactions. Many of these crypto ATMs also suffer from outdated software and lack regular security patches, increasing their susceptibility to cyber threats.
In addition, another concern of these ATMs is network vulnerabilities. If the machine’s network is unsecured, hackers can intercept data transfers, leading to unauthorized access or data theft. Joe Dobson, an analyst at Mandiant, highlights that Bitcoin’s decentralized nature, while a strength, also means there’s no governing body overseeing the ATMs. This lack of oversight opens the door for independent operators, some of whom may neglect essential security protocols.
Meanwhile, Bitcoin ATMs often require personal identification, such as Social Security numbers, for compliance with Know Your Customer (KYC) regulations. If compromised, this sensitive information could fall into the wrong hands, putting users at risk.
Rupam Roy
Rupam, a seasoned professional with 3 years in the financial market, has honed his skills as a meticulous research analyst and insightful journalist. He finds joy in exploring the dynamic nuances of the financial landscape. Currently working as a sub-editor at Coingape, Rupam’s expertise goes beyond conventional boundaries. His contributions encompass breaking stories, delving into AI-related developments, providing real-time crypto market updates, and presenting insightful economic news. Rupam’s journey is marked by a passion for unraveling the intricacies of finance and delivering impactful stories that resonate with a diverse audience.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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