A report by cybersecurity firm Group-IB has identified a series of cryptocurrency scams that took place in February this year, resulting in the theft of $1.6 million using fake cryptocurrency giveaway YouTube streams.
YouTube streams that attracted some 165,000 viewers turned out to be a scam that utilised key figures in the crypto community to exploit potential investors, who were promised the opportunity to double their investment.
The report by cybersecurity firm Group-IB highlighted the following:
“Between February 16 and 18, 2022, the scammers ran 36 fabricated cryptocurrency giveaway YouTube streams promising immediate high returns on cryptocurrency investments. The scammers used the footage of famous entrepreneurs and crypto enthusiasts from legitimate events to create their own fraudulent streams.”
Group-IB’s Digital Risk Protection team identified 36 YouTube streams that used footage from a number of public figures including Elon Musk, Brad Garlinghouse, Michael J. Saylor, Changpeng Zhao, and Cathie Wood. The team revealed that the streams had a viewership as high as 165,000 on one video that showed footage of Ethereum co-founder Vitalik Buterin.
The fraudulent Youtube videos are believed to have been purchased on the underground market, with the videos corresponding with the names of the public figures.
With the sheer volume of cryptocurrencies out there, and the number of scams that operate within the space, it is generally safer for new investors to maintain a relatively conservative portfolio, and avoid the pitfalls that await new would-be crypto holders. However, with crypto scams becoming increasingly sophisticated, even the most cautious and experienced investors should exercise caution when managing their portfolio.
The YouTube give-away scams, not only utilised real footage of well-known figures in the crypto community, the level of sophistication included the use of high-quality images and graphics, with several domain names that included the same crypto wallet address.
Crypto giveaway scams have been plaguing the space for several years, as have ransomware scams, with a report by Chainanalysis stating that around 37% of the crypto scam revenue in 2021 was associated with DeFi related scams.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
