Crypto Scams: A technique using SMS and messaging apps is attacking the sector
Crypto scams continue to rise. One technique in particular is spreading more and more, even going so far as to break into users’ phones.
Recipient error as accessor
Crypto scams are never short of inventiveness when it comes to attracting new victims. With an apparent recovery from the crypto crisis, scams are back in business. After using increasingly deadly techniques, even going so far as to use holograms, an invasion appears to be in order.
According to a report from Coinbase, the technique of “slaughtering pigs” is back in vogue. This has already been reported several times via Tinder scams or Facebook chats. The criminal would approach the victim and then, after gaining their trust, offer to continue the conversation on an encrypted messaging service. The victim was then offered to invest in a high-yield crypto project, even to receive the first bonus. The latter made it possible to convince a sometimes cautious individual to invest more later. The money paid actually came from the wallet of the fraudster, who later recovered it by investing his victim.
However, a new version of this technique appeared this summer. They usually root on the victim’s phone, and now use simple text messages to reach more and more people. Messaging apps like WhatsApp would also be affected. The strategy is simple: the fraudster sends a completely banal message to the potential victim. Then, claiming it was sent to the wrong recipient, the criminal engages in conversation. Then, day after day, he would try to gain the trust of his interlocutor, until he broached the topic of fake crypto investments. Therefore, it is recommended to be extremely careful if you receive an SMS from an unknown number, including if it claims to have a wrong number.
Users seem to be increasingly concerned about their cryptocurrency
As crypto attacks and scams become the new scourge of the cryptosphere, improving protocols could be one of the industry’s top priorities. A need that has become even greater since users are aware of the risks they face. Some of them became very careful about the safety of their property, even going so far as to point out the slightest fault.
This is, for example, what Coinbase currently has. Already in turmoil after the insider trading case, the platform was sued by a hundred of its customers in Georgia. According to them, account security is not sufficiently ensured. The system that is supposed to protect Coinbase would be weak and would allow hackers to steal the coins very easily. Prosecutors would also pay the price; one, George Katulla, reportedly emptied his crypto wallet in a previous attack. Almost $6,000 would then be stolen, although Coinbase was able to recover some of it.
Contrary to its claims, Coinbase does not properly use standard practices to ensure the security of user accounts. Furthermore, the platform inappropriately and unjustifiably blocks its consumers’ access to their accounts and funds, either for an extended period of time or permanently.
Excerpt from the lawsuit filed against Coinbase.
Following this new legal attack, Coinbase may have to pay at least $5 million in compensation to its disgruntled community.
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