Cyber-criminals have found a lucrative way to make millions of dollars through fake cryptocurrency giveaways on social media platforms. Tenable, a cyber exposure platform, has conducted new research shedding light on this alarming trend and warning social media users to be cautious.
The scammers are using well-known public figures associated with cryptocurrency, such as Michael Saylor, Vitalik Buterin, Charles Hoskinson, Brad Garlinghouse, and Elon Musk, to make their fake giveaways appear legitimate. By leveraging these influential voices, the scammers aim to deceive unsuspecting users into sending them cryptocurrency.
According to Tenable’s findings, one subset of YouTube Live crypto scams managed to illicitly earn at least $8.9 million in October alone. Bitcoin scams were the most profitable, raking in an average of $1.6 million per scam and totaling $8.2 million. Ethereum scams followed closely behind, with scammers making $413,000 in stolen funds and an average profit of $82,778 per scam. Shiba Inu scams earned perpetrators $239,000, with an average of $34,192 per scam.
The common tactic used by these scammers is to direct users to external websites promising to double their cryptocurrency. Satnam Narang, a staff research engineer at Tenable, emphasized the importance of being skeptical of YouTube Live videos offering giveaways from prominent figures. He warned users against sending cryptocurrency to participate in such giveaways, as it is highly unlikely to be genuine, and once the digital money is sent, it cannot be recovered.
If users come across these scams on YouTube, they can report the content by clicking on the flag icon below the video and selecting “scams or fraud” from the dropdown menu. It is crucial for social media users to stay vigilant and cautious when encountering cryptocurrency giveaways on social media platforms to avoid falling victim to these fraudulent schemes.