There have been multiple cyber attacks and exploits over the last two years in the crypto sector. The weak crypto regulations and less focus on the crypto market paved a path for the scammers to steal millions worth of crypto assets from various platforms. Some of the attackers used the social media platforms to target the victims by announcing fake giveaways and promoting fake cryptos.
As per reports scammers hacked nearly $14 billion worth of crypto assets in 2021. According to CNBC, losses from crypto-related attacks rose to 79% in 2020. Most of the stolen funds were from DeFi protocols. The top 10 largest cryptocurrency exploits of 2022 recorded $2.1 billion in losses.
Earlier European Police initiated 20 raids on the suspects who are involved in the crypto related fraud schemes that affected hundreds of millions of euros. According to regional reports the police force searched 18 places, four call centers and more than 250 workplaces which are identified in Germany, Cyprus, Serbia and Bulgaria. The scammers have been recruiting to work in call centers to scam people on social media.
Meanwhile, the attackers mainly use Ponzi techniques to target the victims on various platforms. A Ponzi scheme is a method where victims believe that they are getting profit funds from the business activity, but they are unaware that the remaining investors are the reason for the funds. And there is another technique called “phishing scams” where the scammers create emails with suspicious sites.
Recently the cyber attackers hacked the official Twitter account of GOL TV, a US-based TV sports channel, to promote an XRP scam. They acted as Ripple-affiliated firms and offered the users investment opportunities not backed by regulatory oversight.
Europol reported on Jan 11 that 14 scammers were arrested in Serbia and one in Germany. The agency said “Currently, it is estimated that the financial damage to German victims is over €2 million, while other countries such as Switzerland, Australia and Canada also had victims.” According to Europol the illegal groups generated the gains with around four call centers that are in eastern Europe, maybe in the hundreds of millions of euros. Recently the same situation repeated in Amsterdam, Rome, and Brussels.
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— Europol (@Europol) January 12, 2023
Earlier the Philippine Bureau of Immigration (BI) rescued six immigrant victims at the Clark International Airport who were recently trapped in a “crypto trafficking ring.” According to a report by ProPublica, “Tens of thousands of people from across Asia have been coerced into defrauding in America and around the world out of millions of dollars. Those who resist face beatings, food deprivation, or worse.”
Source: https://www.thecoinrepublic.com/2023/03/05/continuous-rise-of-crypto-scammers-in-the-european-nations/