Robocallers and how do they come after your crypto?

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Robocallers have now stepped up their attacks, especially after the fall of cryptocurrency exchange FTX. Technology has also improved which has also prompted scammers to upgrade their mechanisms to swindle funds from crypto users.

Fraudulent organizations, after the FTX issue, are now attacking the cryptocurrency industry. They work by initiating millions of automated calls and text messages to millions of users through an auto-dial mechanism.

Auto-dial is a common practice among fraudsters, including Robocallers, and is used to conduct most scams. These robocalls and text messages trick users and exploit their information to steal their funds.

Clayton LiaBraaten, who is the senior executive advisor of Truecaller, a software company used to identify fraudulent calls and messages, mentioned that scammers stay especially up-to-date with crypto news to better identify and target their victims.

He stated:

Fraudsters like volatility and timeliness. Whenever they can try to ride the contours of something very disruptive in the market, they are very successful.

It has also been reported that after extorting money, calling bots improved their services and even formed an organization with expert scammers.

Other Types of Crypto Scams

LiaBraaten also mentioned that there is a particular way these robocalls work. These entities launch millions of automated robocalls at one time, which then arouses fear and curiosity. These are the two things crooks depend on for information.

For example, if scammers need to get phone numbers, they do it in different ways. One uses tools to scour social networks for data and the second, based on data breaches where a lot of information is leaked.

The most common scam that Truecaller has witnessed is known as the “impostor scam”. Impostor scammers have mushroomed in various industries where they practice this scam.

They disguise themselves as a help desk or other similar entity of a well-known company or crypto exchange. The scammer then posts their details on a website that looks identical to the genuine website to disguise themselves.

A younger population targeted by Robocallers

Scammers are often people who have insight into people’s psychology and are social engineers who will try to find ways to surface information that is contextually relevant. The younger generation is more at risk due to the limitless information people put online.

These allow scammers to message and target their calls with relevant information to ensure communications keep their victims hooked. Reports also suggest that the first call or text rarely results in financial fraud; it is after the first communication that scammers begin to build trust to gain more access to sensitive information.

LiaBraaten adds that “They build more and more character details and when they gather enough information, then yes, they will try to access your crypto wallet.”

Another group vulnerable to such attacks are people who do not understand cryptocurrency. People who understand the technology and are proficient in cryptography are unlikely to fall victim to Robocallers and other fraudulent practices.

So how do you avoid falling prey to the growing crypto scams?

Regardless of their ability to understand how scams work, users should be cautious of these calls and messages that seek personal and sensitive information.

People who do not understand how cryptography works should avoid responding to prompts asking for passwords and other information. They should only interact with official channels when absolutely necessary. This is an effective way to avoid Robocallers.

Lia Braaten further states:

One of the worst things you can do is stay on the phone with these guys because their mission is to relieve you of your cryptocurrency. It just takes a vulnerable moment, a minute of questioning, and then they’re off to the races.

Bitcoin was priced at $16,700 on the 1-day chart | Source: BTCUSD on TradingView

Featured image from UnSplash, chart from TradingView.com

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