Cryptocurrency users are being targeted by professional scam organizations in the wake of the FTX collapse, with millions of automated calls and text messages being sent in an effort to deceive individuals and obtain their information and funds.
Clayton LiaBraaten, a senior executive adviser at Truecaller, an app that helps identify scam callers and messages, spoke to Cointelegraph and revealed that scammers closely monitor crypto news to better prey on their victims. Truecaller has also observed an increase in scam communications related to Bitcoin (BTC) and other cryptocurrencies during periods of market volatility in 2022.
LiaBraaten explained that scammers, whom he refers to as “agents,” launch millions of automated “robocalls” and texts in an attempt to exploit people’s fear, curiosity, and sometimes generosity. They obtain phone numbers through various means, including data breaches that expose millions of numbers or tools that scrape social media platforms for information.
The most common type of scam seen by Truecaller is the imposter scam, where malicious actors pretend to represent a support desk or a major crypto exchange or business. Scammers also publish their phone numbers on fake websites to give themselves an air of legitimacy.
According to LiaBraaten, younger adults are more frequently targeted by fraudsters because there is a wealth of information available about them on social media. This abundance of personal information allows scammers to send messages or make calls that are contextually relevant to their intended targets, making their malicious communications more convincing.
LiaBraaten emphasized that the initial call or text may not immediately result in financial fraud. Instead, agents first try to acquire or confirm information about their targets to establish trust. However, he noted that savvy cryptocurrency enthusiasts are unlikely to fall victim to these scams, as they are knowledgeable and cautious in their actions.
Regardless of a person’s ability to identify scams, LiaBraaten advised against engaging with anyone who calls or messages asking for personal information or passwords. Instead, individuals should only interact through official channels.
In February, Binance CEO Changpeng “CZ” Zhao raised concerns about a “massive” SMS phishing scam targeting Binance customers. The scam involved sending users a text message with a link to cancel withdrawals, leading them to a fake website designed to collect their login credentials.