Recent developments in the crypto sector have underlined the continued threat of fraud, particularly through social media channels.
The high-profile X (formerly Twitter) hacking incidents have exposed a large number of victim accounts promoting fake news. memecoinsThese incidents highlight security flaws as well as the lengths fraudsters will go to exploit unsuspecting users.
High-profile hacks and their impact
Several well-known X accounts – including those of Lenovo India and Yahoo News UK – were hacked in order to support a fictitious memecoin called Hacked.
According to blockchain researcher ZackXBT, investors were persuaded to buy the fake coin from these hacked accounts.
Community Alert: Several large accounts on X have currently had their accounts compromised and are posting meme coin scams. pic.twitter.com/8Bvaq59re5
— zachxbt (@zachxbt) September 18, 2024
However, the scope of these accounts is quite large, and despite avoiding logging out of their hijacked accounts, these Hacker Apparently, he didn’t make much money. Reports suggest that he only managed to pull out $8,000 from the scheme.
This is not a new trend. Last month, hackers hacked into the account of French football player Kylian Mbappe and advertised a fictitious coin.
Such incidents of top-list celebrities being cloned and successfully impersonated are part of a larger trend in which famous people and legitimate companies are used to build credibility and gain the trust of victims.
The use of compromised accounts in some way reflects the extreme weakness of the security features of social media, which is exploited by the wrong people.
As of today, the market cap of cryptocurrencies stood at $2.10 trillion. Chart: TradingView.com
The process of crypto fraud
these scams social engineering Forcing victims to take hasty action. Scammers impersonate celebrities or organizations to create urgency and authenticity.
They may guarantee high returns on investment or offer exclusive access to limited-time opportunities. For example, victims may be encouraged to invest in a new cryptocurrency with the promise of quick profits, but later find themselves unable to withdraw their funds.
They often fall into this trap through harmless social networking interactions. But the most common case is when hackers hack into friends’ accounts and write to their contacts asking them to invest through that account. This technique takes advantage of trust and familiarity, making it easier for scammers to convince people to give them their money.
Update: So far it appears that scammers have probably lost money by buying this method, as top traders have barely made ~$1K and the market capitalization is $67K.
Though there are very few details available, I assume all these accounts might have had permissions to the same site/app.
Always remind me to go… pic.twitter.com/gZcynD9rrV
— zachxbt (@zachxbt) September 18, 2024
Security measures and public knowledge
The more these scams continue to flourish, the more important it is to raise awareness in the community. Experts like ZachXBT advise that regular review of account permissions and disconnecting unused apps will help prevent the risks people face due to account breaches.
In addition, educating users about common signs of scams, which not least include poorly written communications and promises of guaranteed returns, enables users to make decisions effectively.
Regulations are also targeting crypto fraud. California’s Department of Financial Protection and Innovation (DFPI) tracks and reports various frauds, helping victims report and receive assistance. As the crypto landscape evolves, so must strategies to protect users from falling victim to these sophisticated schemes.
Recent hackings have proven that scammers can rarely succeed with high-profile breaches, but many people still risk major losses. Users can better protect themselves against the ever-changing risks of crypto by staying aware and vigilant.
Featured image from Britannica, chart from TradingView
