Cryptocurrency Scams on the Rise in 2022
As we enter the second half of 2022, researchers are sounding the alarm on a significant increase in cryptocurrency scams. According to Group-IB, there has been a triple-digit surge in registered domains intended for fraudulent activities in the first six months of this year, compared to the entirety of 2021.
Explosion of Fake Promotion Websites
Group-IB has identified over 2000 domains that have been registered for the sole purpose of deceiving unsuspecting individuals through fake promotion websites. This marks a staggering 335% increase from the previous year, a five-fold rise from the second half of 2021, and a shocking 53-fold jump when compared to the first half of 2021.
While many of these fraudulent websites target English and Spanish-speaking audiences, it is alarming to note that 63% of these domains were registered with Russian registrars.
Tactics Used to Lure Victims
Victims are drawn to these scam sites through various tactics, including fake YouTube streams featuring well-known personalities such as Elon Musk, Brad Garlinghouse, Cristiano Ronaldo, and even the President of El Salvador, Nayib Bukele. These figures have ties to the cryptocurrency world, making them attractive bait for scammers.
According to Group-IB, scammers exploit these famous individuals by enticing users to visit promotional websites promising to double their crypto investments. Users are asked to transfer cryptocurrency to a specified address or disclose their wallet’s seed phrase in exchange for supposed lucrative returns.
Evolution of Crypto-Scams
Group-IB warns that crypto-giveaway scams have become a profitable illicit market segment, with both amateur fraudsters and sophisticated cyber-criminals joining forces to automate and streamline their operations. The use of hijacked YouTube accounts and underground forums to orchestrate these scams has made them increasingly common and sophisticated.
In a recent revelation by Group-IB, a group of scammers managed to rake in nearly $1.7 million in just three days by directing victims to fake websites through 36 YouTube streams.
As the cryptocurrency market continues to grow in popularity, it is essential for users to remain vigilant and cautious when encountering investment opportunities that seem too good to be true. Educating oneself about the risks associated with online scams and practicing due diligence before parting with any funds can help mitigate the threat of falling victim to these fraudulent schemes.