Crypto Scammers Exploit Legitimate YouTube Accounts to Lure Victims

A recent investigation by Sentinellabs, a cybersecurity company, has uncovered a widespread and continuous scam targeting cryptocurrency users on YouTube. The scammers use old, seemingly legitimate YouTube accounts to promote a crypto trade bot that hides a malicious smart contract designed to drain the user’s funds.

The Scam: How it Works

The scam relies on the credibility of old YouTube accounts that have been publishing crypto-related content, tips, and pop culture-related messages to increase their ranking and appear trustworthy. These accounts are either created by the scammers or purchased from online marketplaces, where old YouTube channels are sold. The scammers then use these accounts to promote a crypto trade bot, which promises quick and easy profits.

Once a victim uses the smart contract, the attacker’s wallet, disguised as a trade address, gains access to the victim’s funds. The scam only works if the victim finances the contract, which requires a minimum investment of 0.5 ether (ETH), worth around $1,829. This amount is purportedly needed to cover gas fees and ensure substantial profits.

Scale of the Scam

According to Alex Delamottea, a senior threat researcher at Sentinellabs, the scam has been successful, with over 256 ether stolen so far, valued at more than $939,000. The investigation revealed that multiple scams have been identified, with one recently discovered scam netting 7.59 ETH, another 4.19 ETH, and a third 244.9 ETH.

Delamottea notes that the same wallet is used in several scam contracts, but the number of unique actors behind the scam is unclear due to the use of multiple unique addresses.

Red Flags: Identifying the Scam

The YouTube accounts used in the scam often have a history of publishing crypto-related content, making them appear credible. However, several red flags can indicate a scam. For instance, the videos may seem AI-generated, with audio and visual stories that make it easy for scammers to create multiple fake videos without revealing their identity.

Negative comments on the videos are often deleted, and the comment section is filled with fake testimonials claiming that the trading bot works as advertised. Scammers likely manage the YouTube comment section to maintain a fake narrative, making it essential for experienced users to seek additional context on platforms like Reddit.

Protecting Yourself from the Scam

Delamottea advises crypto users to exercise extreme caution when encountering trade! instruments promoted on social media or video content. To avoid falling victim to such scams, it’s essential to thoroughly research the tool, understand how it works, and confirm its legitimacy before using it.

Delamottea also warns against using code or tools that promise quick, easy profits without effort or risk, as these are often indicative of a scam. By being aware of these red flags and taking a cautious approach, crypto users can protect themselves from falling prey to these sophisticated scams.