Kraken enlists YouTuber to help foil crypto scam operation

[ad_1]

YouTuber and streamer Kitboga recently teamed up with Kraken to take down fraudsters running a crypto call center scam.

In a video posted to his YouTube channel on Saturday, Kitboga details how he partnered with the cryptocurrency exchange to catch scammers and shut down their operation.

Call Center Scammers Target Crypto Exchange Users

It is one of the oldest digital scams in the book. And yet, the fake security alert has evolved over time and remains a popular way for criminals to defraud their victims.

The principle of the attack is quite simple. A pop-up window is designed to look like a real security alert. But instead of warning users of a threat to their computer, it asks them to call a fake hotline. At the other end, fraudsters posing as cybersecurity experts manipulate callers into making payments, handing over login credentials or even controlling their devices.

In a recent episode of his YouTube series, Kitboga revealed a criminal operation that used the security alert method to target victims’ bank accounts and steal their crypto.

As the video shows, once they took over his computer, the scammer on the phone asked him to log into his online banking and check his Kraken account to see if anything had been stolen.

But unbeknownst to the caller, Kitboga was working with Kraken to help shut down their entire crypto scam operation.

Kraken Helps Bait Crypto Scam Operators

Before contacting the fraudulent call center, Kraken helped Kitboga create a fake account that would appear to hackers as containing a large amount of Bitcoin.

Under the guise that they were working to protect his coins, the crooks asked their victim to initiate a withdrawal request which would drain the account of all his funds. However, each request failed because the account had been specially designed to trap these malicious actors.

The scammers attempted to withdraw Bitcoin from the account (Source: YouTube)

In fact, the Krakens sting operation has smartly worked to collect data on several crypto wallets used by call center operators. This type of information is extremely useful in the fight against crypto crime. In this case, Kraken was able to share wallet addresses with other exchange operators to freeze assets and shut down the network on the author’s crypto laundering operation.

Crypto thieves roll with the times

The latest team-up between Kraken and Kitboga highlights how criminals have adapted their tactics to the crypto possession trend.

In fact, far from being immune to online scams, crypto owners are among the most likely victims. For example, in Canada, research has shown that 35% of crypto owners have fallen victim to such scams.

The Kraken case also shows how criminals use social engineering to manipulate their targets. This allows them to overcome the various security measures implemented by exchanges and wallets.

For example, a scam targeting Coinbase users has been observed using fake SMS alerts. These notified users that their two-factor authentication (2FA) details had changed. A near-victim of the scheme said she spoke to a customer support hotline who asked her for her 2FA code. It was only then that he became suspicious and hung up the phone.

Disclaimer

In accordance with the guidelines of the Trust Project, BeInCrypto is committed to providing impartial and transparent reports. This news article aims to provide accurate and timely information. However, readers are urged to independently fact-check and seek professional advice before making any decisions based on this content.

[ad_2]