Source: Group-IB. A screen capture from a fake YouTube video that appears to show Elon Musk.
Group-IB, a cybersecurity firm based in Singapore, has detected a significant surge in websites promoting cryptocurrency giveaway scams using fake YouTube live streams during the first half of 2022. These scams have become increasingly organized, evolving into a distinct market segment with various services supporting fraudulent activities.
The firm’s research reveals that while 63% of these new scam domains are registered with Russian registrars, they primarily target English and Spanish-speaking individuals interested in cryptocurrency.
The Group-IB Computer Emergency Response Team (CERT-GIB) identified a notable increase in the use of fraudulent YouTube live streams featuring well-known figures, particularly starting in February of this year. Videos appearing to be live streams of Elon Musk, CEO of SpaceX and Tesla; Brad Garlinghouse, CEO of Ripple Labs; Michael J. Saylor, co-founder and Executive Chairman of MicroStrategy; and Cathie Wood, founder and CEO of Ark Invest, were used in these scams.
These scams leverage footage of prominent entrepreneurs and cryptocurrency advocates to lure viewers to websites offering to double their cryptocurrency investments. Victims are then instructed to send their cryptocurrency to a specific address or provide their crypto wallet’s seed phrase to unlock even more favorable terms.
Group-IB experts highlight a substantial expansion of this scheme within a short period. In the first half of 2022, CERT-GIB discovered over 2,000 domains specifically created for these fake promotions. This represents a nearly fivefold increase compared to the second half of 2021 and a staggering 53-fold surge compared to the first half of 2021. The team uncovered 583 fake websites in the first quarter of 2022 alone, with over 1,500 additional domains appearing in the following quarter.
Scammers have also impersonated El Salvador’s President Nayib Bukele and soccer star Cristiano Ronaldo in their schemes. Group-IB notes that these figures were chosen strategically. El Salvador, under President Bukele’s leadership, became the first nation to adopt Bitcoin as legal tender in 2021. Ronaldo, in a notable first, became the first soccer player to receive payment in cryptocurrency when his club, Juventus, awarded him 770 crypto tokens—one for each career goal. Adding to his cryptocurrency ties, Binance, a cryptocurrency exchange platform, announced an exclusive partnership with Ronaldo in June 2022.
Group-IB urges cryptocurrency holders to exercise caution regarding free giveaway offers and refrain from disclosing personal information on suspicious websites. The firm offers additional recommendations:
Verify the legitimacy of live streams and websites through official sources. If promotional information is absent from official channels, it is likely a scam.
Safeguard your seed phrases by keeping them private and stored securely. Utilize password management tools for enhanced security.
Minimize the risk of data leaks by opting for desktop-based solutions over cloud-based alternatives.
Exercise caution even if you have already fallen victim to such scams. Individuals offering assistance on forums may be scammers themselves, aiming to exploit the situation further.