Cryptocurrency scams are on the rise, with researchers detecting a significant increase in registered domains in the first half of 2022 compared to last year. According to Group-IB, over 2000 domains were registered for use as fake promotion websites in the first six months of this year, marking a 335% increase from 2021. This surge in fake sites represents a five-fold increase from the second half of 2021 and a staggering 53-fold rise from the first half of 2021.
While most of these fraudulent websites target English and Spanish speakers, Group-IB reported that 63% of the domains were registered with Russian registrars. Victims are often led to these sites through deceptive YouTube streams featuring well-known figures such as Elon Musk, Brad Garlinghouse, Cristiano Ronaldo, and Nayib Bukele. These individuals have ties to the cryptocurrency world, with Ronaldo recently partnering with Binance and El Salvador adopting bitcoin as its national currency.
The scammers behind these fake sites use footage of these prominent figures to entice users to visit a promotional website promising to double their cryptocurrency investment. Users are instructed to transfer crypto to a specified address or disclose their wallet seed phrase to receive better terms. The YouTube accounts used in these scams are either hijacked using specialized tools or purchased/rented on underground forums in exchange for a cut of the stolen funds.
Group-IB noted that scams targeting crypto enthusiasts are becoming more common and sophisticated. Crypto-giveaway scams have evolved into a lucrative illicit market segment, with both amateur scammers and seasoned cyber-criminals joining forces to automate and streamline their operations. In a previous report from April, Group-IB revealed that a group of fraudsters managed to make nearly $1.7 million in just three days by luring victims to fake sites through 36 YouTube streams.
As the cryptocurrency market continues to attract both legitimate investors and fraudsters, it is crucial for users to remain vigilant and exercise caution when engaging with promotional offers or investment opportunities online. With the increasing prevalence of cryptocurrency scams, it is more important than ever to verify the legitimacy of websites and avoid disclosing sensitive information to unknown sources.