Blockchain analysis firm Scam Sniffer says there are nearly 300 new accounts per day impersonating prominent figures on the social media platform X, which are crypto scam accounts. The number of crypto scam accounts is multiplying like nothing we have seen before.
That is an 87% increase over November’s average of 160 daily impersonation accounts, and it raises serious concerns about the extent of fraud in the crypto space.
Scammers Preying on High-Profile Accounts Cost Millions
At the same time, scammers are finding popular ways to dupe investors, including turning high-profile accounts over to scams to promote fake coins. Unfortunately, in just one case, scammers used fake accounts to lure victims into interactivity with malicious links, leading to $3 million or more in losses by just two people.
One of the platforms most affected is Solana, where compromised accounts for major entities such as Yahoo News UK, Lenovo India, and Money Control were used to push a fraudulent meme coin called HACKED. Despite a market cap of only $67,000, this still is a lot of money for scammers looking for unsuspecting victims.
Blockchain sleuth ZachXBT, who has been tracking scams, has warned users to be on the lookout for crypto-related links and apps and to be wary of what they click. But ‘many of these compromised accounts direct users to malicious sites or applications.’ Safeguarding your assets means revoking permissions to unfamiliar platforms, ZachXBT advised.
Update: So far it seems like the scammers likely lost money purchasing this method as the top traders have barely made ~$1K and market cap is $67K.
While few details are available I would expect these accounts all gave permissions to the same site/app.
Reminder to always go… pic.twitter.com/gZcynD9rrV
— ZachXBT (@zachxbt) September 18, 2024
Some scammers may have made little profit, at least, and that seems to be the case, as suggested by how much top HACKED token traders had reportedly earned less than $1,000. The financial damage the victims suffered proves just how urgent vigilance remains. ZachXBT found many fake accounts pointed to the same malicious site, which suggested it was a coordinated operation.
It’s the latest in a series of high-profile impersonation scams. Hackers used French soccer star Kylian Mbappé’s X account this year to hype up a fake meme coin called Mbappe. Fake coin scheme: Family of US President-elect Donald Trump ‘conned by scammers’: The family of US President-elect Donald Trump was targeted with a fake coin scheme linked to ‘World Liberty Financial,’ scammers are accused.
Experts warn that people in the crypto craze must be educated and cautious as scams multiply. Scam Sniffer and other blockchain analysts recommend that users verify the authenticity of the accounts they follow, not click on unsolicited links, and not sign transactions without proper verification.
Rising Scams: Staying Safe
To minimize risks, Scam Sniffer recommends that users:
- Verify Accounts: Make sure crypto-related accounts are legitimate before joining.
- Revoke Permissions: Conduct a regular audit of applications for which you cannot identify the source and revoke permission.
- Stay Updated: Stay connected to the latest real-time updates on emerging threats through credible sources.
The crypto community is battling fraud, with millions already lost and daily impersonation accounts skyrocketing. Prevention efforts and greater awareness of potential threats are imperative in a continually evolving digital environment that endangers users.
