Crypto Scammers Exploit Leaked Data, Targeting Industry Leaders for Big Profits

Crypto phishing scams have become a lucrative business, with attackers reportedly making tens of thousands of dollars weekly by impersonating Coinbase support and exploiting leaked data.

Nick Neuman, CEO of Bitcoin self-custody solutions provider Casa, recently engaged with a scammer who openly discussed their operations. According to Neuman, the scammer claimed they earned as much as $35,000 in just two days and targeted high-profile crypto professionals, including CEOs, CFOs, and software engineers. The scammers reportedly use databases like Unchained Capital to identify wealthy victims with minimum holdings of $50,000.

The phishing process involves convincing targets that their accounts are at risk, sending them fake notifications with malicious links. These links often lead victims to unwittingly transfer funds to wallets controlled by the scammers. Advanced tactics such as email spoofing and automated doxxing tools are employed to make the attacks more convincing. The ultimate goal is to bypass security measures and siphon funds directly.

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The scammers also revealed their laundering methods, which involve using Tornado Cash to anonymize transactions and converting stolen funds into privacy coins like Monero. They avoid KYC exchanges and rely on intermediaries and hardware wallets like Ledger to cash out. Calling the crypto industry the “Wild Wild West,” the scammer admitted their ambition to scale their operations to $100,000 monthly.

Crypto phishing scams have surged, with over $127 million stolen in the third quarter of 2024 alone, highlighting the ongoing vulnerabilities in the industry despite increased security efforts.

Kosta Gushterov

Kosta has been working in the crypto industry for over 4 years. He strives to present different perspectives on a given topic and enjoys the sector for its transparency and dynamism. In his work, he focuses on balanced coverage of events and developments in the crypto space, providing information to his readers from a neutral perspective.