xrp crypto news

YouTube Crypto Scams On The Rise As Victims Lose Millions

Picture of YouTube app opened on a mobile phone
Written by publisher team

Cryptocurrency scams have increased with the price hike but scammers have found another way to perpetuate their scams. YouTube has always been a powerful marketing and influence tool in the space, which is why it is sometimes a prime target for scammers. This time, the scammers have found another way to separate the victims from their money and that is through the hacked YouTube videos.

Scammers move to YouTube

Tenable reports that the rate of giveaway scams is on the rise. The giveaways are announced via videos posted on the hacked legitimate YouTube channels.

Related reading | Morgan Stanley Deepens Exposure to Cryptocurrency Through the Grayscale Bitcoin Trust

Various YouTube channels have fallen victim to scammers who have hijacked their accounts to promote fake gifts. In these giveaways, scammers promise huge returns by using the image of prominent figures in the industry. This follows the same pattern. The price of cryptocurrencies begins to rise, an event worthy of publication and photos of influencers.

Scammers usually post a video of an interview with prominent personalities like Elon Musk, Michael Saylor, Vitalik Buterin, etc., and in some cases, attach a fake tweet from these people’s Twitter handles to promote their giveaway. Combined with the rising price of an asset, these videos become a flycatcher for investors who attach great importance to these influential voices.

Crypto total market cap slumps to $2.4 trillion | Source: Crypto Total Market Cap on TradingView.com

One such example was when Tesla CEO Elon Musk appeared on Saturday Night Live. Speculation around the market has been that Musk will promote the meme coin, driving it to a new all-time high.

Scammers took advantage of all the hype around appearance and hijacked accounts with millions of subscribers to carry out their schemes. The scammers reportedly made over $10 million in Bitcoin, Ethereum and Dogecoin gifts centered around Musk’s SNL appearance.

Millions lost to crypto scams

These scams have proven to be effective for scammers due to the amount of money that has been earned from them. In the report, Tenable identifies a Bitcoin wallet that was used in one of the crypto scams. This scam has hijacked Michael Saylor’s identity to promote a giveaway. The scammers promised to double the BTC that was sent to a specific wallet.

Related reading | Payments giant isn’t ruling out crypto payments, says co-founder

The bitcoin wallet contained 41 bitcoins when researcher Satnam Narang first came across it. However, by November 19th, that number had risen to 132 BTC stolen in the crypto scam, totaling about $7.7 million at the time.

In October, a subset of these scams raked in nearly $9 million stolen from users. Bitcoin made up most of that number with more than $8.2 million stolen in giveaway scams. $413,983 Ethereum was stolen, while scammers took advantage of the Shiba Inu hype, with $239,346 stolen in October.

Featured image from Mashable, chart from TradingView.com

About the author

publisher team

Leave a Comment