Cryptocurrency has revolutionised how we view money and financial transactions. However, with innovation comes new security challenges. In the first half of 2024 alone, stolen crypto doubled to a staggering $1.38 billion compared to the same time frame of the previous year, a reminder that exercising caution and scepticism is always wise. Between 2022 and 2024, about $10.5 million had been spent on illegal services that provide fake social media accounts. This indicates the use of fake accounts as a scamming technique. A recent incident highlights the lengths to which scammers will go to deceive crypto investors and users, including, as we have recently discovered, posing as employees of Coincover.
Individuals have been using platforms like Telegram, taking advantage of its anonymity and rapid communication, to create fake profiles and impersonate real users. Last week, a scammer pretended to be a Coincover employee on Telegram, attempting to trick an individual into sending $800 worth of Bitcoin. Ironically, the fraudster targeted an employee from a leading blockchain analysis firm who was able to identify the scam.
Using similar usernames and profile pictures, these scammers created profiles resembling those belonging to Coincover employees. After creating the malicious account, the scammer reached out directly to individuals, asking for help sending cryptocurrencies under the pretext of having a wallet issue. In this case, the scammer went as far as researching Coincover employees to identify a target whose name would be familiar and trusted by the intended victim.
Scams are becoming increasingly sophisticated, but you can still protect yourself by staying cautious. Here are some tips to help you spot a scam and avoid falling victim:
Scams, theft, and hacks shouldn't prevent you from feeling safe when exploring the world of cryptocurrencies or other innovative technologies. But these stories should remind you always to exercise caution and protect yourself.
Coincover provides proactive solutions that protect access to your digital assets and the digital assets themselves. Using transaction monitoring technology and a disaster recovery solution, Coincover ensures you always have access to your digital assets and helps minimise the risk of sending funds to unknown wallet addresses by flagging suspicious activity.
Stay up to date on the latest hacks and scams on Coincover’s blog page. Coincover will never ask for private details such as passwords or private keys, nor will we request you to send cryptocurrencies on our behalf.
If you’re ever in doubt, contact us through our verified social channels: