Scammers are targeting crypto users by initiating millions of automated calls and text messages
Scammers are targeting Crypto users: Robocallers or Professional scam firms are targeting cryptocurrency users following the collapse of FTX, initiating millions of automated calls and text messages in an attempt to swindle information and funds. Clayton LiaBraaten, senior executive adviser at Truecaller — an app that helps identify scam callers and messages — spoke to Cointelegraph, scammers often closely follow crypto news to better prey on their victims:
“Fraudsters love volatility and current events. Anytime they can try to surf the contours of something very disruptive in the marketplace they have a great deal of success.”
LiaBraaten said that Truecaller also saw an increase in scam communications relating to Bitcoin
BTC ticked down $16,872 and other cryptocurrencies when the market started to become volatile earlier in 2022. He added “agents” ultimately looking to steal funds launch millions of automated “robocalls” and texts trying to latch onto people’s “fear, curiosity, and sometimes generosity.”
A pump and dump scheme unfolds like this:
- The scammers behind the pump and dump buy a random cryptocurrency or token cheaply
- When they have bought enough of the crypto, they will hype the purchased crypto on social media, often through popular influencers (aka financial influencers)
- The people who are being reached by this hype think they can get rich by buying the cryptocurrency
- People get excited and buy the crypto
- Because the cryptocurrency is now hyped and people are buying, the value of the crypto goes up
- When the crypto reaches a certain target value, the scammer then sells all their cryptos
- This creates lots of supply and causes the value/price to drop
- Many people who have stepped into the pump and dump see the price drop, and also sell their cryptocurrencies in a panic, trying to minimalize loss
- The later you stepped in, the more you paid for the crypto, the greater your loss
