Watch Out, This Is The Mandatory Crypto Thief Fraud Mode You Know!

JAKARTA - Crypto assets offer a variety of investment opportunities, but behind all of that, there is a real threat in the form of scamming or crypto fraud which has become increasingly widespread lately. Along with the increasing number of digital asset users, fraudsters are increasingly creative in launching various modes to deceive potential victims.

The mode of fraud to steal crypto assets is very diverse, ranging from fake investment schemes to psychological manipulation that makes victims willing to give up their digital assets. In this context, it is important for the public to understand the characteristics and types of crypto fraud that often occur, in order to protect themselves from unwanted losses.

1. Social Engineering Fraud

One of the modes of fraud that should be watched out for is social engineering fraud. In this scheme, the perpetrator uses psychological manipulation techniques to seduce the victim in order to provide confidential information regarding their crypto accounts. Fraudsters often disguise themselves as trusted parties, such as government institutions, co-workers, or close friends, to build trust.

In the case that occurred in February 2023, Trust Wallet, which is owned by Binance, lost about US$4 million (Rp60 billion) due to a social engineering attack carried out by a criminal syndicate in Rome. This attack succeeded in defrauding the victim who is the owner of Trust Wallet from the metaverse company, Wesaverse.

2. Phishing

Phishing is also one of the most frequently used fraudulent modes. Perpetrators usually send links to fake websites via email, and ask victims to enter private key from their crypto wallet. Once the information falls into the hands of the fraudster, all the funds in the wallet can be stolen easily.

3. Fake Crypto Exchange Applications and Websites

Fraudsters also often create fake apps or websites similar to trusted crypto exchange platforms. Unaware victims may unknowingly enter their personal data, which is then misused by scammers to steal crypto assets. Some fake apps even broke into Google Play and the App Store, before it was finally deleted, but not a few users have suffered losses.

4. Investment Scheme and Pump and Dump

Investment schemes are also found in the crypto world. Fraudsters promise huge profits in a short time and encourage victims to invest in less-known crypto assets. After victims buy at low prices, scammers will sell their holdings as prices rise, causing prices to fall and victims suffer losses.

By recognizing these various modes of fraud, the public is expected to be more vigilant and do research before conducting crypto transactions. The security of digital assets is an individual responsibility, but by knowing the mode of crypto fraud, holders or crypto asset investors are expected to minimize the risks that may occur.