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Ethereum chain scam and how to report scam

eth chain
Ethereum chain scam and how to report scam. The vast majority of these scams happen on either the Ethereum Chain or the Binance Smart Chain. Because it’s very easy and relatively cheap for the scammers to launch these coins over and over again with different names and make lots of money."
Ether Chain SCAM? | Non working income | Ethereum [ 2020 ...

Statistics provided by TheHackerspro

Scams in the cryptocurrency world run rampant. Reported scams on tracking site thehackerspro total more than 38,179 ETH (~$23 million) which have been taken from users. And this is only what we can trace!

  • Fake MEW/MyCrypto sites: $7.57 million
  • Fake ICOs: $4.5 million
  • The word “give”: $1.48 million
  • Punycode lookalike domains: $507,000
  • Fake exchanges: $502,000
  • The word “gift”: $459,000
  • Elon Musk scams: $322.1 million
  • TOTAL: $23 million

This data can be queried and verified on SEC site about how much scams have stolen.

Scams today are so effective that even when someone like Vitalik Buterin adds “Not giving away ETH” to his display name, scammers still copy his profile pic and display name (containing those very words) and claim to be giving away ETH.

1*kWCb
Fake Vitalik Buterin responding to a real tweet by Vitalik Buterin

Why are these scammers so resilient? Hopefully, this post answers that for you. We’ll explore:

  1. How much are these scams making?
  2. What are the most successful themes in scams?
  3. What trends are we seeing?

Fake MyEtherWallet/MyCrypto Sites — $7.57 million

Crypto-Criminals Strike Again! Fake Wallet App Defrauds ...

The data below reflect all scams listed on EtherscamDB that posed as a fake MyEtherWallet site with at least one known Ethereum address.

This has scammed at least: $7.57 million (12,630 ETH)

The Word “Give” — $1.48 million | ethereum chain scam

Ethereum 2.0 Foundation 100.000 ETH Giveaway Airdrop ...

A “giveaway” is enticing, and one of the most common scams in the Ethereum space. The scam prompts the user to send a small amount of ETH to a destination address with the promise of receiving a much larger amount in return.

As an “Aha!” moment, you’ll notice each Largest Victim entry is relatively low compared to that scam’s Total Scammed value. Why? Because these phony giveaways explicitly ask for small amounts of ETH in exchange for a larger return. They work on quantity, not quality.

1*O1BKSK291k 5YGUVf1wNvg
Truncated output related to scams using the word “give” — the full list is twice as long!

The number of cryptocurrency giveaway scams are rapidly increasing and in the recent times we saw many people fall victim to these scams. These Bitcoin, Ethereum giveaway scams are not new. It’s an old free give away trick that we saw it happen on Twitter in late 2017 and 2018 when cryptocurrency prices were soaring. Now during the worldwide pandemic and economic crisis the scammers are back on form except this time they chose YouTube to host their fake Bitcoin giveaways.

Cryptocurrency giveaway scams on YouTube

Scammers now started hijacking popular YouTube channels to giveaway their bogus BTC / ETH giveaways. The thing is you don’t have to search these channels. They will frequently appear on your YouTube feed as an advertisement. Especially if you have subscribed to any crypto related channels. These ads claim famous people giving away Bitcoin.

Elon Musk crypto giveaway

During the recent SpaceX launch many thought the promotion is legit and got scammed. According to a report by bleeping computer scammers have racked up to $150000 in BTC in just 2 days. To conduct these cryptocurrency giveaways; scammers hacked legitimate YouTube accounts and impersonated Elon Musk’s SpaceX channel. They rename the hijacked channel to “SpaceX” or “SpaceX Live” and then perform giveaways promising you double the amount of BTC in return of what you send them.

For years they seem to spot a profitable trend like for example BTC halving and impersonate famous personalities like: Tesla CEO Elon Musk, CZ Binance, Vitalik Buterin, Twitter CEO Jack, Ripple CEO Brad Garlinghouse, Michael Bloomberg and venture capitalist Chamath Palihapitiya. Now it seems like they started impersonating Amazon’s CEO Jeff Bezos.

YouTube crypto giveaway ad

How these Bitcoin giveaway scams work?

Somehow scammers seem to hijack popular YouTube channels first and some of the hijacked channels are reported to have more than 100k to 300k subscribers. Maybe it’s because the owner of the channel used week login credentials like flimsy passwords or not using 2FA could be the reason for the hack.

After taking over popular channels; hackers change the branding and rename the channel to something famous such as: SpaceX, Space X live or Jeff Bezos depending on what’s currently trending.

They then start live streaming some old recorded footage of Elon Musk or Jeff Bezos being interviewed. The broadcast seems like a live event and they promise you significant returns if you send them a small amount of Bitcoins.

Bitcoin giveaway scam

These videos states:

To participate you just need to send 0.1 BTC to 20 BTC to the contribution address and we will immediately send you back 0.2 BTC to 40 BTC to the address you sent it from

Are people still getting scammed to these old technique?

Along with the Elon Musk’s recorded video you’ll also see live transaction feed to the scammers BTC address which is also fake. It’s all randomly generated and the amount of viewers watching the broadcast will make you feel the promotion is legit. It is all mostly bots viewing the live stream and commenting.

This has scammed at least: $1.48 million (2,482 ETH

The Word “Gift” — $459,000

Give vs. gift — which one is more meaningful?

It’s hard to say for sure, as our data rely on what users report most often, and what addresses we know about. Give seems to be more common, though, with 103 entries to gift’s 43.

This has scammed at least: $459,000 (765 ETH)

1*X1T1KZTcD7DbE6mCCaUQig
Scams using the word “gift”

Punycode Domains — $507,000

Browsers support displaying character encodings beyond the English alphabet you’re used to seeing. “Punycode” allows attackers to purchase domain names containing these alternate encodings using only ASCII characters. For example:

1*P LsTQy2isMK1AyoLmDdEQ
Alternate-encoded domain name

The subtle discrepancies in the “e”s might go unnoticed, and the TLS “Secure” icon would only serve to further trick a user.

The ASCII character set does not deal with these symbols, so to represent these alternate encodings in ASCII, you would use an ASCII Compatible Encoding (ACE) prefix of “xn- -”. This tells the computing world to treat the text not as ASCII, but as an alternate encoding to render to the user.

These are all the Punycode domains reported on ETH

This has scammed at least: $507,000 (845 ETH)

1*eA6xN7Vh8k8J7W9RjBqS A
Punycode domains scamming 845.61 ETH

Exchanges — $502,000

Spoofing cryptocurrency exchanges is a popular way to convince users to send ETH or give up their private keys.

No exchange is immune, so below is a list of all exchange-related scams listed on EtherscamDB with at least one known address.

This has scammed at least: $502,000 (838 ETH)

1*eXV4tskPbJs4m8BtCSO
Exchange-related scams

Fake ICOs — $4.5 million

0*kP cHWFsZ9F4VAHN

At the time of this writing, Etherscan says there are 92,945 ERC20 token contracts deployed on mainnet. And that’s only ERC20 — that doesn’t include any of the more recent standards.

Many of these token contracts had a token sale associated with them. If they gained even a modest amount of traction, scammers certainly tried to spoof them.

This has scammed at least: $4.5 million (7,513 ETH)

1*qkGKHvIOx01YHx 2AR 0cw

We can break down the data into specific token sales, too. One example (not pictured in the truncated output above) is Telegram.

Telegram — $75,600

Telegram had an ICO planned which created plenty of excitement in the crypto space. Naturally, scammers took notice.

This has scammed at least: $75,600 (126 ETH)

1*8Pob09PO

Celebrities

Besides institutions, scammers impersonate high-profile individuals.

Elon Musk

For whatever reason, Elon Musk has become a popular target to impersonate for Ethereum scammers.

This has scammed at least: $32,000 (54 ETH)

1*OIwLlsfvQBLz2RSUFNGgIA
Elon Musk related scams

Total — $23 million

Take all the scams reported on TheHackerspro with confirmed addresses associated with them, de-dupe any aliased scams, and sum all incoming transaction history to their addresses. That’s a total of about $23 million (38,179 ETH) going to these scams.

And these are just the scams we can trace! Thousands exist without any confirmed addresses tied to them. Thousands more exist that have never been reported!

How To Protect Yourself And Others

There was a recent global bust related to child exploitation, for example, that was built on bitcoin addresses so it is false that bitcoin transactions are “untraceable”.
Information other than bitcoin addresses can also help. The fraudulent company must have had a website, email addresses, maybe they phoned you. Any of those details may,
in some cases, help find the perpetrators. It is certainly possible to ‘cover your tracks’, but not everybody does this and does it correctly.
I imagine that there is nothing worse than being scammed out of your hard-earned money or Bitcoin.
The suggestions provided above might not always be unique to your situation, but you should always try whatever options are available before giving up.
Also, Try to find a way to connect with other victims so that the importance of your case is increased.

If you see a scam, please take a brief moment to report the URL, address, or both. This helps us continue to build our blacklist and potentially save future victims.

2 Comments

  • tia johnston

    August 17, 2021 - 9:01 am

    The UK’s Financial Conduct Authority (FCA) does now regulate binary options.
    They have already created a list of unauthorized firms. While they are
    not calling them scams, they are making it clear that these firms are
    breaking the law by trading with UK visitors so they are best avoided.
    By contrast, the USA along with most other EU countries do regard binary
    options as financial products. Depending on where they are based, many
    platforms will, therefore, be subject to oversight from a regulatory
    body. Examples include the CFTC in the US and CySec in Cyprus. A
    platform’s regulatory status can be a highly valuable trust-indicator
    for traders seeking to avoid scams. It shows that the broker has to
    abide by certain minimum standards when it comes to service and
    transparency. What To Do If You’ve Been Scammed
    Do you think you’ve fallen prey to a binary options scam? Read on to
    find out what you can do if you’ve been scammed. There are many ways to
    help ensure that you don’t fall prey to a scam but the reality is that
    even if you follow all those tips there is still a possibility you will
    be scammed. If that happens, what do you do? Do you sit back and take
    it? Do you give up on trading? No, you need to stand tall and look out
    for yourself. Trading is good, it is rewarding and can lead to a life in
    which you don’t have to go to a job and punch a clock. You can’t let
    the actions of one broker, signal service, robot or guru dissuade you
    from that path. This article is a look at what you can do if you think
    you’ve been scammed. It’s likely that you would be able to get your
    initial deposit but it might take some work.
    TheHackerspro are a firm specializing in helping victims of binary options fraud. They help claimants to explain the incident to the bank or credit card company, so that they fully understand what has
    happened.

  • Isaac Salem

    August 25, 2021 - 10:39 am

    I’ve been hearing you talk about this on Twitter for a while and I think this article is a good and interesting summation. Definitely something to be aware of and I wonder how your site loads so fast within seconds

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