Main Topic: Scammers using technology to trick Americans out of money.
Key Points:
1. Reported consumer losses to fraud in 2022 reached $8.8 billion, a 30% increase from 2021.
2. Investment scams, including cryptocurrency schemes, accounted for the biggest losses, totaling over $3.8 billion.
3. Scammers target vulnerable individuals through various channels, including social media, text, phone, and email. Awareness of common scams and taking precautions can help protect against fraud.
The Drug Enforcement Agency (DEA) lost over $55,000 in seized cryptocurrency to a common scam after falling victim to a crypto address spoofing attack. The scammer was able to trick the DEA by airdropping a fake address that resembled the real one used by the United States Marshals Service, resulting in the agency mistakenly sending the funds to the scammer's account. The scammer then converted the funds into ether and moved them to a new wallet, with over $425,000 received since June, and over $300,000 of that amount being moved in the last three weeks. The FBI is leading the investigation into the theft.
The FBI has issued a warning that North Korean threat actors may attempt to cash out stolen cryptocurrency valued at over $40 million, with recent investigations revealing that the group has moved approximately 1,580 bitcoin and is currently holding those funds in six different wallets.
Blockchain YouTuber Ivan Bianco lost nearly $60,000 worth of cryptocurrency and NFTs after accidentally revealing his seed phrases during a livestream, leading to unknown individuals stealing his funds.
Cryptocurrency casino Stake suffered an exploit resulting in a loss of $16 million, with the stolen funds converted to ether and transferred to externally owned wallets, although withdrawals from the targeted wallet have been paused.
Popular crypto betting platform Stake lost around $40 million in unauthorized transactions, with $16 million leaving the platform in Ethereum, Tether, USD Coin, and DAI, and an additional $25 million drained on Binance Smart Chain and Polygon, according to blockchain security experts.
North Korea-linked hackers have stolen over $200 million worth of cryptocurrency this year, accounting for more than 20% of all stolen crypto, in order to fund the regime's nuclear weapons programs, according to blockchain intelligence firm TRM Labs.
A cryptocurrency whale lost millions of dollars in a phishing attack on Rocket Pool, with the stolen funds being transferred to a cryptocurrency exchange, FixedFloat.
Tech scammers are using phony cryptocurrency accounts to dupe victims into investing large sums of money, resulting in billions of dollars in stolen cryptocurrency and financial ruin for many victims.
Hackers stole over $691,000 from Ethereum founder Vitalik Buterin's followers by posting a malicious phishing link that provided access to their wallets, with the majority of the stolen value being non-fungible tokens (NFTs).
A CoinEx hot wallet lost $27.8 million in various tokens in a suspected cyberattack when large amounts of tokens were transferred to an account with no previous history.
A phisher who stole $24.2 million worth of staked Ethereum is using the crypto mixer Tornado Cash to move their stolen assets, according to crypto security firm PeckShield.
CoinEx, a global cryptocurrency exchange, suffered a hack where large amounts of digital assets were stolen, with preliminary estimates suggesting a loss of around $43 million, possibly linked to the North Korean hacking group Lazarus.
Mark Cuban, owner of the Dallas Mavericks, lost nearly $870,000 in a phishing attack on his crypto wallet, highlighting the prevalence of such attacks in the industry. However, he was able to save $2.5 million by transferring his tokens to a Coinbase exchange address.
Hong Kong-based cryptocurrency exchange CoinEx has confirmed that compromised private keys allowed hackers to steal over $70 million worth of tokens, and is working on rebuilding its wallet system to restore functionality and compensate affected users.
Crypto exchange Binance, along with the US government and Thai police, has helped dismantle a multi-million-dollar crypto scam in Thailand that targeted novice traders with fake investment platforms, resulting in the arrest of five principal members and the seizure of assets worth $277 million.
A new report reveals that over $1 billion was lost in crypto this year, with $600 million lost in the last quarter due to an increase in successful hacks and specific events, highlighting a significant power law distribution in terms of the level of impact and loss.
Billionaire Mark Cuban lost nearly $1 million in a cryptocurrency scam, possibly due to downloading a malicious version of the MetaMask wallet software or falling victim to phishing, highlighting the importance of being cautious and educated about cybersecurity risks such as phishing emails and dodgy links.
Huobi Global's cryptocurrency exchange has recovered $8 million in stolen Ether through negotiations with a hacker, who accepted the offer and returned the funds.
Hong Kong police have warned users of a recent Binance phishing scam that has targeted Hong Kong-based customers, resulting in over $446,000 in combined losses over the last two weeks. Hackers gain access to users' Binance accounts by tricking them into verifying their personal details through fraudulent text messages, allowing the theft of assets from their wallets.
Irish authorities have managed to recover around 4 million euros of the 20 million euros lost to banking scams in 2023, as fraudsters in the country target traditional banking customers rather than cryptocurrency investors.
