Crypto Phishing Scams: How Scammers Earn Big Targeting Executives
Crypto phishing scams are becoming increasingly sophisticated, with scammers reportedly earning five-figure weekly incomes by impersonating Coinbase support and exploiting leaked data. These criminals are targeting high-ranking crypto executives, including CEOs and software engineers, to steal sensitive information and ultimately steal cryptocurrency. One such scam was recently revealed when Nick Neuman, CEO of Bitcoin self-custody provider Casa, shared his experience with a scammer who claimed they were earning up to $35,000 per week through these deceptive tactics.
Scammers Earning Big by Impersonating Coinbase Support
In a conversation shared by Nick Neuman on X (formerly Twitter), the scammer revealed shocking details about their operations. The scammer claimed that their group earns a minimum of five figures a week from phishing attacks, stating that they recently hit $35,000 in just two days. According to the scammer, they specifically target individuals with significant crypto holdings, such as CEOs, CFOs, and software engineers, who are more likely to fall for the phishing attempts. They further revealed that their database, containing targets with at least $50,000 in assets, is primarily sourced from Bitcoin financial services company Unchained Capital.
Neuman’s conversation with the scammer highlighted the well-organized nature of these attacks. The scammer admitted to using an “auto-doxxer” tool to gather personal information on their victims before launching the phishing campaigns. These attacks often include malicious links that appear to be legitimate Coinbase notifications, tricking the victims into providing access to their crypto wallets. The end goal isn’t simply to steal passwords but to trick victims into sending funds to wallets controlled by the scammers.
Advanced Techniques to Bypass Security
The scammer also revealed some of the advanced techniques they use to remain undetected while carrying out these phishing attacks. They mentioned spoofing emails to make them appear as if they came directly from Coinbase, which adds a layer of legitimacy to their deception. Once the scammer gains access to their victim’s crypto wallet, they quickly convert the stolen funds into privacy coins, such as Monero (XMR), using services like Tornado Cash to launder the money.
When asked about their methods for converting stolen crypto into fiat, the scammer revealed that they avoid KYC (Know Your Customer) exchanges and rely on hardware wallets like Ledger. They also use intermediaries to cash out the stolen funds without drawing attention. The scammer even mentioned that accessing company databases is relatively easy and described the crypto world as “the Wild Wild West,” where security measures are often weak and unregulated.
The Growing Threat of Crypto Phishing Attacks
Crypto phishing scams are becoming a major concern in the cryptocurrency industry. According to Scam Sniffer, a Web3 security firm, more than $127 million was stolen in the third quarter of the year through phishing attacks alone. These scams are especially dangerous because they target high-net-worth individuals in the crypto space, using sophisticated techniques to bypass security and steal funds.
The rapid growth of these scams is a reminder of the need for stronger security measures and vigilance among crypto users. As phishing scams continue to evolve, individuals in the crypto community, especially those with significant holdings, must remain cautious and verify every communication before acting on it.
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