Professional scam organizations are setting their sights on cryptocurrency users in the wake of FTX’s collapse. These scammers are resorting to millions of automated calls and text messages in an attempt to deceive people and steal their information and funds.
Clayton LiaBraaten, a senior executive adviser at Truecaller, an app that helps identify scam callers and messages, spoke to Cointelegraph about this growing issue. He revealed that scammers closely monitor crypto news to better target their victims. In fact, Truecaller noticed an increase in scam communications related to Bitcoin (BTC) and other cryptocurrencies when the market became volatile earlier this year.
According to LiaBraaten, these “agents” who aim to steal funds launch millions of automated “robocalls” and texts, preying on people’s fears, curiosity, and sometimes generosity. Scammers can obtain phone numbers through various means, including data breaches that expose millions of numbers or tools that scrape social media platforms for information.
The most common scam seen by Truecaller is the imposter scam, where malicious actors pretend to be representatives of support desks or similar entities from major crypto exchanges or businesses. Scammers even publish their phone numbers on fake imitation websites to make themselves appear legitimate.
LiaBraaten pointed out that younger adults are often targeted because they share a lot of personal information on social media. Scammers take advantage of the abundance of online information to send messages or make calls that are contextually relevant to their intended targets, making their malicious communications more convincing.
However, the initial call or text doesn’t necessarily lead to immediate financial fraud. LiaBraaten explained that agents first try to gather or confirm information about their targets to establish trust. He also noted that savvy cryptocurrency enthusiasts are less likely to fall victim to these scams because they are knowledgeable and cautious.
LiaBraaten emphasized that regardless of one’s ability to detect a scam, it is important to never engage with anyone who asks for personal information or passwords over a call or message. Only official channels should be used for such interactions.
In February, Binance CEO Changpeng “CZ” Zhao raised an alarm about a massive SMS phishing scam targeting Binance customers. The scam involved sending users a text message with a link to cancel withdrawals, leading them to a fake website designed to steal their login credentials.