Originally published on: November 21, 2024
Crypto phishing scammers are raking in impressive five-figure weekly profits by posing as Coinbase support and using leaked data to go after high-profile crypto executives and tech experts.
Nick Neuman, the CEO and co-founder of Bitcoin self-custody solutions provider Casa, had a firsthand encounter with a scammer claiming to be from “Coinbase support.” What he discovered when he decided to confront the scammer was eye-opening.
In a video shared on X, Neuman revealed the details of the conversation where the scammer boasted about making a minimum of five figures a week, with a recent peak of $35K in just two days. The scammer confidently stated that there was money to be made in these illicit activities.
The scammer admitted to targeting CEOs, CFOs, and software engineers, claiming that anyone could fall victim to their phishing schemes. Details on high-value targets, including Neuman himself, were allegedly obtained from Bitcoin financial services company Unchained Capital using an “auto-doxxer.”
Their ultimate goal is not just to obtain passwords but to eventually coax victims into sending funds to a wallet under the scammer’s control. To cover their tracks, the scammers turn to services like Tornado Cash for laundering stolen crypto and sometimes convert the proceeds into privacy coins like Monero.
When it comes to cashing out, the scammers avoid KYC exchanges, opting instead for hardware wallets like Ledger. Despite the risks associated with their activities, the scammer nonchalantly compared the crypto landscape to the “Wild Wild West,” emphasizing the lack of regulation and enforcement.
With millions of dollars at stake, crypto phishing attacks remain a prevalent threat in the industry. According to Web3 security firm Scam Sniffer, over $127 million was stolen in the third quarter alone through such fraudulent activities.
As the scammer Neuman encountered aims to increase their earnings to $100,000 per month, it’s clear that vigilance and cybersecurity measures are more crucial than ever in the rapidly evolving world of cryptocurrency. Stay informed and protected to navigate this digital frontier safely.