Michaela
Summary: How are scammers using YouTube to steal crypto?
Scammers hijack old, trusted YouTube channels to promote fake trading bots with hidden smart contracts that drain funds. Victims are tricked into deploying these contracts and sending crypto, losing thousands.
Cybersecurity company SentinelLABS has issued a report revealing that cybercriminals are exploiting long-established, credible-seeming crypto YouTube channels to advertise a fraudulent trading bot embedded with a malicious smart contract that drains users’ funds.
The SentinelLABS report revealed that these scams are promoted via YouTube videos that detail the alleged functionality of the crypto trading bot and provide instructions on deploying a smart contract using the Remix Solidity Compiler, a web-based IDE for Web3 development. Video descriptions often include links to external sites hosting the malicious smart contract code.
Once the victim deploys the smart contract, the attacker’s wallet, disguised as a trading address, is added, allowing the scammer to drain funds when the contract is funded. Victims are prompted to deposit at least 0.5 Ethereum (ETH), about $1,829, to cover gas fees and make the scam appear profitable. Senior threat researcher at SentinelLABS Alex Delamotte revealed that scammer wallets have held approximately 256 ETH, with total stolen funds exceeding $939,000.
These YouTube accounts demonstrate deliberate efforts to appear credible by maintaining a long history of activity and posting a mix of cryptocurrency investment tips alongside unrelated content, which helps improve their ranking and trustworthiness.
Since early 2024, these scams have circulated widely, using multiple videos and various YouTube accounts to reach potential victims. “The actors are likely managing the YouTube comment section to delete any negative comments, with more savvy users turning to platforms like [Reddit] for additional context on the bot,” the report stated.
Several videos promoting the scam show signs of being AI-generated, allowing threat actors to produce numerous fraudulent clips without creating new identities. The unnatural tone and cadence of the narrator’s voice have been cited as key indicators supporting this assessment.
YouTube Scams Reinforce Trust and Education in Shiba Inu Community
While bad actors continue to exploit aged YouTube accounts and AI-generated content to promote fake “trading bots,” the Shiba Inu community remains steadfast in its commitment to decentralized trust, transparency, and education.
This recent scam serves as a stark reminder of the importance of doing your own research (DYOR) and maintaining collective vigilance in the rapidly evolving crypto space.
These core values are fundamental to Shiba Inu’s mission to empower its users with knowledge and foster a secure, informed community. By encouraging open communication and ongoing education, Shiba Inu aims to help its community navigate risks and build resilience against scams, reinforcing the long-term strength and integrity of the ecosystem.
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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
