Cryptocurrency users are being targeted by professional scam organizations in the wake of FTX’s collapse. These scammers are resorting to millions of automated calls and text messages in an attempt to deceive individuals and gain access to their information and funds.
Clayton LiaBraaten, a senior executive adviser at Truecaller, an app that helps identify scam callers and messages, explained that scammers closely monitor crypto news to better prey on their victims. Truecaller has observed an increase in scam communications related to Bitcoin (BTC) and other cryptocurrencies during periods of market volatility in early 2022.
LiaBraaten stated that these “agents” aim to steal funds and employ millions of automated “robocalls” and texts that exploit people’s fear, curiosity, and sometimes generosity. Scammers can obtain phone numbers through various means, including data breaches that have exposed millions of numbers or tools that scrape social media platforms for information.
The most common scam observed by Truecaller is the imposter scam, where malicious actors pretend to represent support desks or similar entities from major crypto exchanges or businesses. Scammers also publish their phone numbers on fake imitation websites to make themselves appear legitimate.
According to LiaBraaten, younger adults are frequently targeted because there is a wealth of information available about them on social media. This abundance of personal information allows scammers to tailor their messages or calls to their intended targets, making the malicious communications more convincing.
LiaBraaten emphasized that the initial call or text does not necessarily result in immediate financial fraud. Scammers first attempt to gather or confirm information about their targets to establish trust. However, LiaBraaten believes that savvy cryptocurrency enthusiasts are unlikely to fall victim to these scams due to their knowledge and vigilance.
Regardless of one’s ability to detect scams, LiaBraaten advises against engaging with anyone who calls or messages asking for personal information or passwords. Instead, individuals should only use official channels for such requests.
In February, Binance CEO Changpeng “CZ” Zhao warned 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.