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Showing posts with label cryptocurrency scams. Show all posts
FBI
Crypto Fraud Crypto scams cryptocurrency cryptocurrency scams Cyber Attacks CyberCriminal FBI

Cryptocurrency Scams Surge in 2023, FBI Reports Record $5.6 Billion in Losses

 

Despite cryptocurrency no longer dominating the headlines like it did during the 2021 to 2022 boom, cybercriminals are still leveraging it to generate billions of dollars in fraudulent income every year. According to the FBI, 2023 was the most lucrative year on record for cryptocurrency scammers, highlighting the growing scale of these crimes. 

In a report released by the FBI in 2023, it was revealed that cryptocurrency scams accounted for over $5.6 billion in losses, based on more than 69,000 complaints filed with the FBI’s Internet Crime Complaint Center (IC3). This represents a 45% increase from the previous year, demonstrating that despite market fluctuations, scams related to digital currencies are not slowing down. While the broader cryptocurrency market experienced turbulence in 2022, with the collapse of firms like Celsius, Terraform Labs, and the bankruptcy of FTX, scammers have continued to exploit the industry. 

The FBI’s report underscores that the losses from cryptocurrency scams now constitute more than half of the total losses from all online scams reported in 2022. This is a staggering statistic that demonstrates just how prevalent these schemes have become. Investment fraud remains the most common form of cryptocurrency scam, accounting for $3.96 billion of the total losses in 2023. This marks a sharp rise from the $2.57 billion lost to similar scams in 2022. The increasing sophistication of these scams has made it difficult for many people to discern legitimate investment opportunities from fraudulent ones. 

Interestingly, different types of scams tend to affect various age groups in different ways. For instance, those in their 30s and 40s were most frequently targeted by cryptocurrency investment frauds. However, individuals aged 60 and above suffered the most significant losses, with more than $1.6 billion reported by this age group alone. This data highlights the need for increased awareness and protective measures, especially for older individuals who may be more vulnerable to these scams. It’s crucial to note that the actual total of losses is likely much higher than the FBI’s report, as many victims do not report the crimes. 

FBI Director Christopher Wray urged people to report scams even if they did not suffer financial loss. According to Wray, doing so helps law enforcement stay ahead of criminals and their increasingly complex methods of defrauding people using emerging technologies. As cryptocurrency scams continue to grow in size and sophistication, it serves as a reminder that the need for strong cybersecurity measures and public awareness around digital currencies is more critical than ever. Reporting scams can not only help victims but also protect others from falling prey to similar fraudulent schemes.
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Technology
AAP AI Artificial Intelligence cryptocurrency scams cyber literacy Cybersecurity Experts Fraudsters Law Enforcement online financial scams Pacific Islands Social Media Technology

Analysis: AI-Driven Online Financial Scams Surge

 

Cybersecurity experts are sounding the alarm about a surge in online financial scams, driven by artificial intelligence (AI), which they warn is becoming increasingly difficult to control. This warning coincides with an investigation by AAP FactCheck into cryptocurrency scams targeting the Pacific Islands.

AAP FactCheck's analysis of over 100 Facebook accounts purporting to be crypto traders reveals deceptive tactics such as fake profile images, altered bank notifications, and false affiliations with prestigious financial institutions.

The experts point out that Pacific Island nations, with their low levels of financial and media literacy and under-resourced law enforcement, are particularly vulnerable. However, they emphasize that this issue extends globally.

In 2022, Australians lost over $3 billion to scams, with a significant portion involving fraudulent investments. Ken Gamble, co-founder of IFW Global, notes that AI is amplifying the sophistication of scams, enabling faster dissemination across social media platforms and rendering them challenging to combat effectively.

Gamble highlights that scammers are leveraging AI to adapt to local languages, enabling them to target victims worldwide. While the Pacific Islands are a prime target due to their limited law enforcement capabilities, organized criminal groups from various countries, including Israel, China, and Nigeria, are behind many of these schemes.

Victims recount their experiences, such as a woman in PNG who fell prey to a scam after her relative's Facebook account was hacked, resulting in a loss of over 15,000 kina.

Dan Halpin from Cybertrace underscores the necessity of a coordinated global response involving law enforcement, international organizations like Interpol, public awareness campaigns, regulatory enhancements, and cross-border collaboration.

Halpin stresses the importance of improving cyber literacy levels in the region to mitigate these risks. However, Gamble warns that without prioritizing this issue, fueled by AI advancements, the situation will only deteriorate further.
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token fraud
Check Point Threat Intel Blockchain crypto market risks cryptocurrency scams Cyber Fraud fraudulent activities Rug Pulls Scams smart contract manipulation token fraud

Crypto Investors Face Nearly $1M in Losses Due to Rug Pull Schemes

 

Check Point's Threat Intel Blockchain system has exposed a new fraudulent activity, spotlighting the ongoing issue of Rug Pulls – a deceitful maneuver causing financial harm to investors. The system recently detected dubious actions associated with a specific wallet address, unveiling an elaborate scheme that successfully siphoned nearly $1 million.

The scam, orchestrated by the wallet address 0x6b140e79db4d9bbd80e5b688f42d1fcf8ef9779, involved the creation of tokens related to popular topics to attract unsuspecting buyers. The detailed disclosure on Tuesday outlined the deceptive process, starting with the generation of counterfeit tokens like GROK 2.0. Subsequently, funds were injected into the token pool to create a false sense of legitimacy.

The scammer, through orchestrated trading activities, created an illusion of market engagement, particularly in trades between the WETH cryptocurrency and the GROK token. This inflated demand successfully lured in investors, and once a critical mass was achieved, the scammer rapidly withdrew liquidity from the token pool, resulting in substantial losses for investors.

Behind the scenes, the scheme involved two distinct smart contracts, each playing a crucial role in trading and artificially inflating the token's volume. The function 0x521da65d executed a total of 226 trades, while the contract at the address 0x4b2a0290e41623fbfeb5f6a0ea52dc261b65e29b facilitated the function 0xf029e7cf, strategically increasing the token's volume through swaps between WETH and GROK tokens.

Check Point emphasized that this incident underscores the inherent risks in the cryptocurrency market, emphasizing the importance of ongoing vigilance and due diligence. In a statement, the company stressed, “As the crypto landscape continues to evolve, staying vigilant and informed is paramount for investors,” the company wrote.

“The recent Rug Pull incident serves as a stark reminder of the need for heightened awareness and due diligence. By understanding the tactics employed by scammers, we can collectively work towards creating a safer and more secure crypto environment.”
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