Crypto Scammers Exploit Executives, Raking in Five Figures Weekly

Crypto Phishing Scams on the Rise

Crypto phishing scams are becoming increasingly lucrative, with some scammers claiming to make five figures weekly by impersonating Coinbase support representatives.

These scammers are particularly skilled at leveraging leaked data to target high-level professionals in the cryptocurrency industry, such as executives and software engineers. A notable instance was reported by Nick Neuman, the CEO and co-founder of Casa, a firm dedicated to Bitcoin self-storage solutions.

During a recent phone call, Neuman found himself engaging with a scammer who claimed to be from Coinbase’s support team.

Rather than hanging up, Neuman decided to challenge the scammer about their deceptive activities.

Insights from the Scammer

The scammer revealed that they generate a minimum weekly income of five figures, recalling an impressive high of $35,000 in recent earnings.

This financial success, they explained, drives their continual engagement in fraudulent schemes. On November 20, Neuman shared a video of this fascinating exchange on X. During the call, the scammer mentioned that a request for a password change had been reversed, and they had sent out a deceptive notification containing a malicious link aimed at tricking potential victims.

Curious about the kind of people who usually fall for such scams, Neuman pressed for details. The scammer candidly admitted that they usually target individuals like Neuman—specifically, individuals in upper management and specialized fields like CEOs, CFOs, and software engineers.

They stated that their focus is not on people with lower financial status but rather on those with considerable assets, using a database that identifies individuals with at least $50,000 in holdings.

Interestingly, they noted that wealth or education level does not guarantee protection against their tactics; they obtain comprehensive information from Unchained Capital, a provider of Bitcoin financial services.

The Dark Side of Cryptocurrency

Claiming access to Unchained’s database, the scammer suggested that anyone with a stake in cryptocurrency is likely to have a Coinbase account.

They employ an “auto-doxxer” tool to gather pertinent information about their targets before making phishing calls, even generating emails that mimic Coinbase’s correspondence. Instead of merely securing passwords, their ultimate goal is to trick victims into sending cryptocurrency to wallets they control.

They admitted to utilizing Tornado Cash to launder the stolen funds, operating outside U.S. jurisdiction, with plans to convert illicit cryptocurrency into privacy coins like Monero (XMR). The scammer explained their laundering process, stating that holding Monero for just a few days makes the funds nearly impossible to trace.

When asked about changing cryptocurrency back into fiat, they confirmed they steer clear of any exchanges with Know Your Customer (KYC) regulations, preferring to use hardware wallets, including Ledger—an entity that faced phishing attacks following a major breach in 2020.

They finally rely on intermediaries to cash out their earnings. Characterizing the cryptocurrency landscape as the “Wild Wild West,” the scammer reflected on the lack of recourse for individuals who lose significant amounts, such as $30,000 or $40,000, in Bitcoin or Ethereum.

They optimistically set their sights on increasing their monthly scam earnings to $100,000. According to Scam Sniffer, a company that specializes in Web3 security, crypto phishing schemes resulted in over $127 million worth of stolen assets in just the third quarter of the year, highlighting the growing impact of this type of cybercrime in the cryptocurrency sphere. “`html

Source: Cointelegraph.com

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