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Increasing prices of cryptos followed by flurry of scams

Namrata Shukla



Increasing prices of cryptos followed by flurry of scams
Source: Pixabay

As the prices of cryptocurrencies soar high, the number of scams around the coins has also seen a drastic increase. Binance, the largest cryptocurrency exchange in the world through their academy program tried to spread some awareness about the crypto thefts taking place in the space.

One particular medium highlighted by the report was Sim swapping. A cybercriminal could gain access to the user’s phone number by employing social engineering techniques to trick mobile phone operators into issuing a new SIM card to hackers. Binance mentioned an instance where Michael Terpin, a cryptocurrency entrepreneur who had claimed that due to AT&T’s negligence in handling his phone credentials he lost all his token, valued at over $20 million. The report stated:

“Once cybercriminals have gained access to your phone number, they can use it to bypass any 2FA that relies on that. From there, they can work their way into your cryptocurrency wallets and exchanges.”

As the value of most cryptos grows, the scams in the ecosystem grow too. Andreas Antonopoulos, a Bitcoin proponent had a complaint about this too. He said:

“Just FYI: The ICO, IEO, “influencer marketing”, endorsement, “advisor” etc emails and DMs have started flooding in again. People are offering me (and many others) $25k to $250k for endorsement, review, tweets etc. I say no, many say yes.
SCAMS are coming. Be careful.”

Many scamming sites promise to double the crypto or ask the users to invest in crypto and let them trade on behalf of them and most of the times, such traders flee the market. Antonopoulos asked the newbies and others in the space to:

“Please educate your friends and family:
– Promises of profit are 100% ponzi
– Request to “recruit”, “affiliate” etc are 100% pyramid schemes
– ICO/IEO are 99.99% pump-and-dump”

Along with the proponents, the media websites reporting on crypto have also seen people sliding into their DM’s to promote a coin or an ICO, however, they have informed the community about the ongoings of these handles and asked the community to be more vigilant.

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Namrata is a full-time journalist and is interested in covering everything under the sun, with a special focus on the crypto market.