According to WithSecure Inc., a vast network of cryptocurrency scams is rapidly spreading across YouTube, with thousands of videos attempting to lure in victims. Most of the videos appear genuine and even receive fake engagement from hundreds of other channels within this illegal network. It’s estimated that only around 30 people manage these operations through Telegram messaging services.
The team utilizes automation to replicate comments for the videos to fool potential victims into believing they are reputable. These videos suggest fake Tether cryptocurrency investment schemes using web-based apps constructed with malicious intentions. Researchers uncovered over 700 URLs hosting these phony applications.
These scammers entice potential investors through fraudulent YouTube clips. Once their attention is captured, the swindlers prompt them to move money from a current cryptocurrency wallet into one of the apps they offer.
Andy Patel, a Researcher at WithSecure Intelligence, stated that this network appears to be utilizing an opportunistic approach by aiming for existing cryptocurrency investors with low-grade videos in different languages and not localizing them according to regional requirements. Typically, this leads to many small transactions; however, as the volume of these transactions grows, so do their chances of stumbling upon someone capable and willing to invest larger sums.
According to the United States Federal Trade Commission, 46,000 individuals were scammed out of over one billion dollars in cryptocurrency between January 2021 and June 2022. Distressingly, almost half of these victims reported that their losses began on a social media website.
Drawing upon data gathered by WithSecure in the second half of 2022, researchers estimated that over 900 victims were tricked into paying out more than $100,000 due to fraudulent apps promoted through YouTube videos.
“Though these particular scams don’t seem very lucrative, they have undeniably learned how to manipulate YouTube’s recommendation algorithms through a simple yet effective method. Social media platforms are challenged with the huge task of censoring content, and while this approach has proven successful in amplifying their cause, I’m confident that more could be done to protect people from such frauds.”
Andy Patel
