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FBI warns of ICHCoin crypto scam costing Americans their life savings

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5 hours ago

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The FBI is sounding the alarm on a cryptocurrency scam that’s cost some Americans their entire life savings.

According to an abc13 report, the bureau alleges that ICHCoin, which lured victims under the pretense of offering a crash course on cryptocurrency investing, is an elaborate scam that has siphoned millions of dollars from individuals across the United States.

FBI Houston’s assistant special agent in charge Amanda Culver told the media outlet that the perpetrators behind the scam have been duping people since December 2023 and have stolen roughly $30 million via the ICHCoin app. Some victims had allegedly lost their entire lifesaving.

Culver added that scammers can easily find victims as “people are very interested in investing in cryptocurrency,” emphasizing the importance of doing proper research before making any investments.

The FBI is currently investigating the scam and has urged victims to come forward with information regarding ICHOCoin or similar scams by filling out their online questionnaire.

How the ICHCoin scam works

According to Culver, the scam works in multiple stages. First, scammers approach victims on social media platforms like Facebook and Instagram. The icebreaker is an offer to educate the victim on cryptocurrency investing, promising to open doors to lucrative profits through crypto investments.

Once victims are convinced, they are redirected to messaging platforms like WhatsApp, where a fake professor or teacher contacts them to proceed with the scam. While Culver did not provide more details on how the scam plays out from here, the Washington State Department of Financial Institutions had flagged ICHCoin in one of its warnings in July. 

At the time, crypto.news reported that the victims were lured into the “Excellence and Innovation Fortune Business School,” which is a front for the ICHCoin scam and were added to groups controlled by these fake academics, which offered daily trading signals and investment tips for massive returns.

This is also where the victims are introduced to a fake crypto trading platform, in this case, the ICHCoin app, and urged to make investments. Culver added that the scammers often urge victims to lie to the banks when making transfers to these platforms. The app also shows false return on investment data, but when attempts are made to withdraw any profits, the accounts are frozen, or the scammers ghost the victim.

She also stressed the importance of recognizing red flags, particularly when receiving “unsolicited messages” promising high returns or offering “free money” to investors, emphasizing that these are clear warning signs.

FBI hunting crypto scammers

Over the past months, the FBI has increased its crackdown on cryptocurrency scams and ramped up investigations. The bureau issued warnings regarding crypto threats on multiple occasions in September alone. 

For instance, on Sept. 3, the FBI cautioned businesses dealing with crypto exchange-traded funds that the notorious North Korean hacking group Lazarus started using “complex and elaborate” tactics to infiltrate their systems. In a subsequent report, the bureau revealed that over $5.6 billion was lost in frauds and scams involving cryptocurrencies, with individuals over 60 as the most targeted demographic.

In early October, the federal agency also charged an individual with attempting to extort cryptocurrency assets.



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24/7 Cryptocurrency News

Sam Altman OpenAI X Account Breached In Crypto Scam Attack

Published

2 weeks ago

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September 24, 2024

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Sam Altman’s OpenAI X account was compromised on Monday in an attempt to conduct cryptocurrency fraud. Hacker impersonated OpenAI and sent out a message advertising a new fake token named $OPENAI, and lured the audience into visiting a phishing page to input their credentials for their crypto wallets.

OpenAI X Account Hacked in Cryptocurrency Scam

According to OpenAI, the hack affected its newsroom on X (previously Twitter), the account that is used to publish company-related information. The fake tweet claimed that a new blockchain token called “$OPENAI” had been launched, which is not true and has no connection with OpenAI. 

The message stated that all OpenAI users would be able to get a share of the token to provide early access to the upcoming beta versions.

This hack is the latest in a series of similar incidents that has targeted OpenAI accounts on X. In the last few months, even OpenAI top employees such as Chief Scientist Jakub Pachocki or researcher Jason Wei have also had their accounts hacked and used to promote similar cryptocurrency scams.

Details of the Phishing Scam

The fraudulent post appeared on the @OpenAINewsroom account around 6:24 PM ET. It had several mistakes, among which the improper name of Sam Altman’s OpenAI was used: $OPEANAI, and the link led to the phishing site which imitated the OpenAI website. 

The site had a button that read “CLAIM $OPENAI” which was intended to trick users into linking their cryptocurrency accounts. The post had no comment section, which made it more difficult to recognize the fraud for the users. As much as the post was deleted it remained visible for almost an hour and could have been seen by many followers.

Such scams as this one commonly attempt to collect user credentials and, consequently, give the attackers access to the users’ cryptocurrency portfolios. Connecting wallets to the fake websites can lead to loss of funds or exposure of personal information.

Previous Incidents of OpenAI Account Breaches

This recent hacking of Sam Altman’s OpenAI X account is not the first of its kind. Over the past year, OpenAI has been a victim of cybercrimes where scams have attempted to impersonate company officials on various platforms. In June 2023, for instance, OpenAI’s Chief Technology Officer, Mira Murati, also had her account hacked. Similarly, her account uploaded a fake cryptocurrency scam which was similar to the one that was posted on the OpenAI newsroom account.

These incidents are not new to X and other organizations of such stature as the World Health Organisation and Yahoo News UK have also fallen prey to cyberciminals. In particular, the cybercriminals use these breaches to trick the respective victims into various fake cryptocurrency investment schemes such as pump and dump.

Subsequently, Sam Altman’s OpenAI has acknowledged the breach and is investigating the incident. The company urged users to remain cautious and avoid interacting with suspicious posts or links that claim to offer cryptocurrency giveaways. 

Despite the recent security issues, OpenAI is moving forward with its latest innovations. The company is set to launch an advanced voice mode for ChatGPT, offering users enhanced voice interaction capabilities. This new feature aims to improve accessibility and expand the ways users can engage with the AI assistant.

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Kelvin Munene Murithi

Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.

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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Binance Alerts Users To Malware Risks in Crypto Withdrawals

Published

3 weeks ago

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September 14, 2024

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Binance 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.

BinanceBinance
Binance

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. 

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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

4 weeks ago

on

September 10, 2024

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Crypto-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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