Cryptocurrency scammers are using fake videos of personalities like Elon Musk on TikTok to lure victims into fraudulent schemes. Cybersecurity media outlet BleepingComputer found fraudulent crypto sites that require users to deposit 0.005 BTC to activate accounts. Scammers on X (Twitter) pose as companies such as Ark Invest, promising a “1% daily return,” leading to substantial financial losses.
Scammers are turning to social media platforms such as Instagram, TikTok and X (Twitter) to conduct crypto scams, posing as famous personalities such as Elon Musk.
While bad actors used to rely on text messages and X (Twitter) posts to target victims, widespread access to Artificial Intelligence (AI) is changing their game.
TikTok Scammers’ Modus Operandi
They are now deepfaking videos of famous personalities like Elon Musk, Changpeng Zhao, Vitalik Buterin and many more. A user scrolls through short videos on TikTok and sees a deepfake video of Elon Musk talking about a new cryptocurrency or cryptocurrency exchange. Out of curiosity, or perhaps greed, the user clicks on the link shared in the TikTok video without checking whether Elon Musk actually endorses the product.
Cybersecurity media outlet BleepingComputer tested one of the fraudulent giveaway websites. The website’s user interface showed that the fraudulent exchange had deposited 0.34 Bitcoin (BTC) into users’ accounts. However, to withdraw the amount, the user must first deposit 0.005 BTC to “activate” the account. Then, the scammers stop responding once the funds have been deposited. In some cases, scammers will also attempt to steal personal information from users, citing “know your customer” (KYC) purposes.
Exploits, Hacks and Scams Caused Losses of Almost USD 1 Billion in 2023, Report Reveals
Malicious actors targeting the crypto space have stolen more than $45 million in digital assets from their victims in the month of August alone and a total of $997 million so far this year (YTD), according to a report shared by blockchain security firm CertiK.
In the report, released earlier this month, CertiK highlighted that exit scams stole around $26 million, flash loan attacks stole $6.4 million, and exploits stole $13.5 million from their victims in August 2023. The cybersecurity firm confirmed that total losses amounted to more than USD 45 million.
According to CertiK, over $997 million has been lost to exploits, hacks, and scams so far in 2023. This includes around $261 million lost to flash loan attacks, over $137 million lost to exit scams, and over $137 million lost to exit scams. 596 million lost due to exploits.
Crypto scams on X (Twitter)
The scammers are not only active on TikTok, but also use other social networking platforms such as X (Twitter). A simple search for “crypto token” will generate hundreds of phishing tweets, each attempting to steal users’ funds via fake tokens.
In addition, scammers use bot accounts to tag users and draw their attention to phishing posts. Once the post is published, the bots mention names of cryptocurrency enthusiasts in the replies.
Recently, users lost more than $700,000 after Ethereum co-founder Vitalik Buterin’s X (Twitter) account was hacked.
Through Buterin’s account, scammers posted a link promising free non-fungible tokens (NFT). Unsuspecting victims who clicked on the link subsequently lost their NFTs. Earlier this month, a crypto whale lost $24 million through a wallet approval phishing scam.
To be on the safer side, users should avoid interacting with social media posts and videos that promise airdrops, cryptocurrency and NFT giveaways, whitelisting access or anything else for free.
By Leonardo Pérez
