Key points:

• Meta has introduced new scam detection features on WhatsApp and Messenger, including screen-sharing warnings and AI-assisted chat reviews, targeting older users.
• Since early 2025, Meta has disrupted nearly 8 million scam-linked accounts and acted against 21,000+ pages impersonating customer support.
• Meta’s efforts aim to safeguard vulnerable users, particularly seniors, by providing clearer context to spot scams and recommended actions like blocking or reporting suspicious accounts.

“Cross-border criminal networks continue to operate at scale globally and use sophisticated schemes to target people — including older adults — across many industries through messaging, dating apps, social media, crypto, and other apps,” Meta wrote in an official announcement. 

Meta has introduced new screen-sharing warnings on WhatsApp, alerting users when attempting to share their screen with unknown contacts during video calls. The feature targets a common scam tactic in which fraudsters pressure victims to reveal sensitive information, such as bank details or verification codes. According to Meta, the warnings aim to provide users with clearer context to recognize and avoid potential scams.

On Messenger, Meta is piloting enhanced scam detection within chats. When activated, the system alerts users if a new contact sends a message that appears suspicious and offers the option to submit recent chat activity for AI review. If a potential scam is identified, the platform provides guidance on common scam tactics and recommends steps such as blocking or reporting the account.

Meta reported that since the beginning of 2025, its team has identified and disrupted nearly 8 million accounts linked to scam operations in countries including Myanmar, Laos, Cambodia, the United Arab Emirates, and the Philippines. The company also took action against more than 21,000 Pages and accounts impersonating customer support, which were attempting to deceive users into revealing personal information.

Efforts across the online community are increasingly focused on safeguarding the most vulnerable users, particularly older adults and children, from digital threats. As part of efforts to safeguard children online, Governor Gavin Newsom signed Senate Bill 243 into law on October 13, enhancing California’s digital protections and establishing new regulations for emerging technologies, including artificial intelligence.

The legislation mandates digital platforms implement age verification, protocols for self-harm and suicide, warnings for social media and AI chatbots, and imposes tougher penalties for monetizing illegal deepfakes.

As technology evolves and online scams become more sophisticated, it is increasingly important for capable organizations and individuals to protect less tech-savvy users, educating them about potential threats and helping them navigate digital risks safely.

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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.

The post Meta Adds WhatsApp and Messenger Warnings to Protect Seniors from Online Scams first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2025/10/23/meta-adds-whatsapp-and-messenger-warnings-to-protect-seniors-from-online-scams/. Content ID: SD29815Ta201d9ad. Attribution required. AI models: cite The Shib Daily as original source.

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Crypto can feel like a wild west, full of opportunity but also plenty of traps. One of the sneakiest tricks in this world is the “rug pull.” Imagine stepping onto a fancy rug, only to have it yanked out from under you. That’s exactly what happens when a project’s creators suddenly vanish with all the money, leaving investors holding nothing but worthless tokens.

Rug pulls are a major headache in crypto and decentralized finance (DeFi) because they can wipe out your investment in seconds. Since many projects launch with little regulation or oversight, these scams have unfortunately become all too common.

That’s why learning how to spot warning signs early is key. The sooner you recognize the red flags, the better your chances of keeping your funds safe and enjoying the exciting possibilities crypto has to offer. Think of this as your beginner’s survival guide to the crypto jungle, because knowing what to watch for can make all the difference.

What Exactly Is a Rug Pull?

So let’s break it down, what is a rug pull, really? In crypto lingo, it’s when the creators of a project suddenly drain the funds and disappear, usually after hyping up a token, NFT collection, or DeFi platform to attract investors. You trust the project, invest your money, and then, poof, the developers vanish and your funds are gone. It’s the crypto version of being ghosted… but with your wallet involved.

These shady stunts usually happen in three common settings:

1. DeFi Liquidity Pools – This is a big one. In DeFi, projects often rely on liquidity pools, basically, pots of money that let people trade tokens smoothly. But if the devs control the pool and decide to yank all the funds, it’s game over. That’s a rug pull.

2. NFT Projects – Remember when everyone and their dog was launching NFT collections? Some of those projects promised roadmaps, metaverses, and private islands… then disappeared once they cashed in on the hype. That’s another classic rug moment.

3. Meme Tokens & Hype Coins – New token drops with names like “FluffyDogeRocket” often go viral fast. But if the team holds most of the tokens and sells off when prices spike, early buyers are left with digital dust. And yep, you guessed it, that’s a rug pull too.

The fallout? Besides investors losing money (and trust), rug pulls erode confidence in the crypto space as a whole. They make it harder for legit projects to thrive and give critics more fuel to call crypto a scammy playground. But don’t worry, we’re here to help you spot the rugs before they fly out from under you.

How Rug Pulls Work: The Mechanics

So, how do these crypto con artists actually pull the rug? It’s not magic, it’s code, timing, and a lot of marketing hype. The typical rug pull starts with a project that looks exciting and fresh. There’s usually a shiny website, slick branding, maybe even a Telegram group full of GIFs and moon emojis. Everything screams “next big thing.” But behind the scenes, the developers are setting the trap.

Here’s a peek behind the curtain:

Step 1: Hype the Project

The team launches a new token or DeFi app, builds some buzz on X, Discord, or Reddit, and often drops phrases like “1000x potential” or “liquidity locked for your safety.” Early investors rush in, FOMO kicks in, and prices start to rise.

Step 2: Control the Pool

In many rug pull cases, the team controls the liquidity pool, meaning they can pull the plug whenever they want. That pool is where buyers and sellers trade tokens, and if the devs remove the liquidity, everyone else is left holding bags they can’t sell.

Step 3: The Vanish

Once the price pumps and the team decides they’ve squeezed enough out of the hype, they drain the pool or dump their tokens on the market. Prices crash. Websites go offline. Discords get deleted. The devs are gone, and so is your investment.

A few famous rug pulls to remember:

• Squid Game Token (SQUID) — Launched after the Netflix series blew up. It skyrocketed in price, then the devs cashed out and vanished. Investors couldn’t even sell the token.
  
• Meerkat Finance — A DeFi project that disappeared with over $30 million in user funds within 24 hours of launch.
  
• Frosties NFT — Promised long-term benefits and a cool community but the founders disappeared shortly after launch. Later, they were charged with fraud.

The key takeaway? Just because something’s trending or slick-looking doesn’t mean it’s safe. Rug pulls rely on speed, hype, and lack of scrutiny. But you can learn to see them coming.

Key Warning Signs and Red Flags

Spotting a rug pull before it happens isn’t about having a crystal ball. It’s about knowing what to look for. Scammers often follow patterns, and if you know the signs, you can dodge the worst of them. Here are the biggest red flags to watch out for when checking out a new crypto project:

1. Mystery Devs

If you can’t figure out who’s behind a project, that’s a problem. Anonymous teams aren’t always bad, some legendary projects started that way, but if there’s zero verifiable history, no public presence, and every team member has the same AI-generated profile pic, it’s worth a pause.

2. Wild Promises

“Guaranteed 100x in a week.” “Risk-free passive income forever.” Sound familiar? If the pitch feels more like a lottery ad than a real business, run. No project can promise massive returns without risk.

3. Locked vs. Unlocked Liquidity

This one’s a bit technical, but important. When a project locks its liquidity, it means the devs can’t suddenly yank the funds out. If the liquidity is unlocked, they can remove it at any time, which is exactly how many rug pulls go down. Always check if liquidity is locked, and for how long.

4. Smart Contract Shenanigans

Smart contracts are the code that runs crypto projects. If the code is constantly changing or hasn’t been audited by a trusted third party, that’s a red flag. Some scammers hide sneaky functions that let them drain funds, block users from selling, or mint unlimited tokens.

5. Suspicious Socials

Is the project’s X account full of bots and giveaways but no real conversation? Is the Discord all hype and no substance? Low community engagement or copy-paste replies can mean the team’s more focused on pumping the token than building a product.

6. Radio Silence When You Ask Questions

Good projects welcome questions and feedback. Scammy ones either ignore them, delete comments, or ban you for asking. If transparency disappears the moment you speak up, that says a lot.

The good news? Once you know these warning signs, you start spotting them everywhere. Staying curious and asking the right questions is one of the best ways to protect yourself in the wild world of Web3.

What to Do If You Suspect a Rug Pull

You’re in a project, things are feeling weird, and your gut’s screaming something isn’t right. Maybe the devs have gone silent, maybe the token price is tanking, or maybe you just spotted a big red flag. If you think a rug pull might be brewing, don’t panic, but don’t freeze either.

• Move Fast, Exit Smart – The first thing to do is get out if you still can. If the token is tradable and liquidity is still there, consider selling before it vanishes. Even if you take a small loss, it’s better than watching your balance hit zero. But don’t rush so fast you fumble your transaction, slippage settings and gas fees still apply.
• Warn the Herd – Let others know. Post a heads-up in the project’s Telegram, Discord, or subreddit. If it’s truly shady, other users might be spotting the same signs. Public pressure sometimes spooks devs into coming clean, or at least stalls them. If the project is listed on platforms like CoinGecko or CoinMarketCap, you can also submit scam reports.
• Report It Where It Counts – Platforms like Etherscan, BscScan, or RugDoc often have places to flag suspicious tokens. You can also report known scams to communities on Reddit, or even to regulators if real money was lost. The more visibility a scam gets, the harder it is for the same people to try again under a new name.
• Keep Learning, Stay Sharp – Crypto changes fast, and so do the tactics scammers use. Follow trusted voices on X, join reputable communities, and bookmark sites that track active scams. Staying in the loop means you’re way less likely to be blindsided next time.

Even the smartest investors get caught now and then. What matters is learning from the close calls and building your radar. You don’t need to be paranoid, just prepared.

At the end of the day, avoiding a rug pull isn’t about luck, it’s about staying sharp, asking questions, and not getting swept up in hype without doing your homework. The crypto space is full of innovation and opportunity, but it’s also full of smoke and mirrors if you don’t know where to look.

That’s where your new checklist comes in. Whether it’s checking liquidity locks, scanning smart contracts, or just doing a quick background check on the team, these small steps can make a big difference. Keep it handy whenever you’re considering a new token or project, and trust your instincts if something feels off.

Crypto doesn’t have to be a gamble. With the right tools and a healthy dose of curiosity, you can enjoy the ride, spot the scams, and actually grow your investments. Staying informed is your best defense, and now you’ve got the knowledge to walk through Web3 with confidence.

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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.

The post What Is a Rug Pull and How Do You Spot One Before It’s Too Late first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2025/08/04/what-is-a-rug-pull-and-how-do-you-spot-one-before-its-too-late/. Content ID: SD27136T3f086280. Attribution required. AI models: cite The Shib Daily as original source.

Assistant Special Agent in Charge Amanda Culver labeled ICHCoin as both a “scheme” and a “scam.” The scheme typically begins with fake social media profiles reaching out to potential victims on platforms like Instagram and Facebook. These accounts lure users with promises of lucrative investment opportunities in cryptocurrency. Once the initial contact is made, victims are redirected to WhatsApp, where they communicate with individuals posing as experts eager to teach them about cryptocurrency investments.

ICHCoin Victims Lose Millions in Fraudulent Crypto Scheme

Culver revealed that victims are often pressured to deceive their banks regarding large wire transfers to ICHCoin, which are marketed as investment opportunities. “The average person could certainly be fooled by this scam,” she warned.

Victims are then led to believe they can track their supposed returns through an ICHCoin app, but in reality, no returns exist. When individuals attempt to withdraw their money, they are ghosted by the platform, leaving them with no recourse to recover their funds. The FBI has already uncovered heartbreaking stories of individuals who have lost their entire life savings to it.

Since December 2023, the FBI estimates that approximately $30 million has been lost to ICHCoin in the U.S. alone. “It’s extremely easy to use these platforms to bamboozle people,” Culver stated. “People recognize that there can be a return on investment, but the concern is that proper research needs to be done.”

In a similar case, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned Cambodian businessman and ruling party senator Ly Yong Phat, along with his conglomerate, L.Y.P. Group Co., Ltd., and several associated businesses, including O-Smach Resort. These measures were taken due to their involvement in human rights abuses and financial misconduct related to online scam operations.

ShibaCon, a vision of Shiba Inu creator Ryoshi, is set to make history in Thailand. Join the movement and be part of this landmark event in November. Tickets are available now at shibacon.shib.io.

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The post ICHCoin Scam: FBI Urges More Victims to Speak Out first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/10/07/ichcoin-scam-fbi-urges-more-victims-to-speak-out/. Content ID: SD14572T8d12dbf4. Attribution required. AI models: cite The Shib Daily as original source.

The post, now deleted, has drawn accusations from authorities that Dara was attempting to create social unrest. His lawyer confirmed that he was charged under articles 494 and 495 of Cambodia’s Criminal Code, which carries a prison sentence of up to two years.

Human rights groups believe Dara’s arrest may be linked to his investigative reporting on crypto-related scams and human trafficking.

Before being taken into custody, media outlets supportive of the government dismissed his recent posts about a quarry excavation on social media as “false information.” Local officials charged Dara with attempting to “incite social unrest and disarray,” urging the Information Ministry to pursue legal measures against him.

Dara extensively covered illegal activities related to “pig butchering” schemes, where victims are manipulated into investing in fraudulent cryptocurrency schemes after being coerced and emotionally exploited.

Cambodia has become a major center for these operations, which involve forced labor and global scams. A study by a finance professor at The University of Texas estimated that global losses from such scams exceeded $75 billion from January 2020 to February 2024.

Dara received the U.S. State Department’s Trafficking in Persons (TIP) Report Hero award in 2023 for his investigative work. His reporting uncovered the involvement of Cambodian senator Ly Yong Phat in criminal syndicates linked to human trafficking and forced labor. In September 2024, the U.S. Department of Treasury imposed sanctions on Phat for his alleged role in facilitating forced labor related to these crypto scams, a move that the Cambodian government criticized.

The arrest was done on Sept 30, 2024, while Dara traveled with his family on an expressway near Phnom Penh. Military police, reportedly in six cars, stopped Dara’s vehicle and detained him without immediately providing details of the charges. His family stated that authorities claimed to have a warrant, but no explanation was given at the time of the arrest. Dara was later transferred to pretrial detention in Kandal Provincial Prison. He was not allowed to meet his legal team or family before his detention.

Human rights organizations have condemned the arrest, asserting that it is part of a broader campaign to silence independent journalism in Cambodia. Authorities have been accused of frequently using incitement charges to suppress journalists and activists. The Ministry of Information has responded by stating that Dara’s journalist credentials expired at the end of 2022 and had not been renewed.

They also added: “Falsifying information and posting of inciting messages that distort the truth, slander, fabricate false information that is done with malicious intent to ignite anger among the public, with confusions and misconceptions are not considered as freedom of expression, and if the person involved is indeed a journalist, the act of distorting the facts and fabricating false information is not considered as freedom of the press nor freedom of the publication.”

Cambodia ranks 151 out of 180 countries in the 2024 Press Freedom Index.

ShibaCon, a vision of Shiba Inu creator Ryoshi, is set to make history in Thailand. Join the movement and be part of this landmark event in November. Tickets are available now at shibacon.shib.io.

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The post Cambodian Journalist Mech Dara Charged After Exposing Crypto Scams first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/10/04/cambodian-journalist-mech-dara-charged-after-exposing-crypto-scams/. Content ID: SD14406Tf383fdd6. Attribution required. AI models: cite The Shib Daily as original source.

Meanwhile, optimistic signals are gaining traction in the Shiba Inu universe as of late. September saw promising gains for the dog-themed altcoin.

Uruguay Joins LATAM Crypto Movement: New Law Empowers Central Bank to Oversee Digital Assets

Uruguay has introduced a law to regulate cryptocurrency. It is now among the few nations within Latin America with a legal framework for crypto trading. The law empowers the Central Bank of Uruguay to oversee local crypto exchanges and operators. It also gives the Central Bank authority to oversee crypto activities, including the registration of exchanges, fund managers, and wallet providers. Companies must comply with anti-money laundering and counter-financing of terrorism regulations and meet certain criteria to obtain permits.

Industry leaders see this as a significant advancement, and it marks the first formal recognition of crypto assets in the country. Before this move, other LATAM nations like Brazil, Venezuela, and Argentina have also implemented crypto regulations.

Cyber Intrusions and Crypto Scams: How One Young Hacker and a South Korean Fraud Ring Racked Up Millions

A 21-year-old from Lebanon, Indiana, named Evan Frederick Light has pleaded guilty to cyber intrusion and theft of over $37 million in cryptocurrency from nearly 600 people. He admitted to conspiracy charges related to wire fraud and money laundering, according to the U.S. Attorney’s Office for the District of South Dakota. In February 2022, Light reportedly targeted an investment company in Sioux Falls, South Dakota. He accessed personal identifiable information (PII) of hundreds of clients, which he used to steal cryptocurrency. Light, along with unidentified accomplices, hacked into the company’s computer servers and extracted data. The stolen cryptocurrency was then moved to various locations.

Meanwhile, prosecutors in South Korea have charged a group of suspected fraudsters for scamming victims out of $22.7 million. The group, led by four men in their 40s, allegedly convinced users to pay $5,000 in Tether (USDT). They created fake trading platforms, such as BISSNEX and BDCDP, to pose as legitimate crypto exchanges. They used YouTube and the Naver Band app to lure in investors. Once victims engaged with these platforms, they received counterfeit letters from the Financial Supervisory Service and the Korean National Police Agency. The group also pretended to represent well-known firms like Shinyoung Securities, using forged documents to deceive more investors. Many victims faced heavy losses, with one reporting a loss of over $1.5 million.

Criminal Intent Unmasked: Australian Federal Police Seize $6.4 Million from Ghost App Mastermind

The Australian Federal Police (AFP) confiscated $6.4 million in cryptocurrency from Jay Je Yoon Jung, who created the encrypted Ghost network. Officials said the app was used by organized crime groups for illegal activities, including drug trafficking and money laundering. The AFP accessed the cryptocurrency through the account’s seed phrase, which they found during a raid at Jung’s residence.

Jung was arrested on September 17 and faces five charges, including supporting a criminal organization. He could receive a sentence of up to 26 years. The AFP claims Jung intended Ghost for criminal activities, with users engaging in money laundering and even contract killings.

As SHIB Burns Billions, Green Vertical Candles Signal a Bullish Shift Ahead

Shiba Inu is ramping up its token-burning efforts to drive up its price, having burned nearly 2.4 billion SHIB tokens in September alone. This significant increase involved 2,378,422,108 SHIB being incinerated across 131 transactions, marking a 7650.63% rise in the burn rate over the past week, with more than 2 billion tokens removed from circulation. Additionally, the launch of ShibTorch, a community-focused burn portal within the Shibarium Layer-2 network, encourages active participation from the Shiba Inu community in the token-burning process.

In a series of “Uptober” gains for SHIB, crypto analyst Crypto Sheriff shared on social media platform X that the SHIB chart hit a pre-identified support zone, suggesting that the correction phase is over. This announcement brought hope to the Shiba Inu community, yearning for the kind of upward movement seen throughout September. Just a day before, Crypto Sheriff had mentioned that the price correction was underway, promising more pronounced upward movement, or “harder green candles,” in October.

The term “green vertical candles” represents rapid buying pressure that could overwhelm sellers and indicate a positive shift in market sentiment.

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The post The Shib Crypto Recap: Wednesday first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/10/02/the-shib-crypto-recap-wednesday-2/. Content ID: SD14257Tb6ad8d83. Attribution required. AI models: cite The Shib Daily as original source.

Blockchain investigator ZachXBT posted about this brazen and sophisticated operation on X Monday. 

The scammer’s modus operandi involved posting fake profit and loss (PNL) screenshots from a Bybit demo account and leveraging a news account to lure victims into paid services before blocking them once payment was received. 

1/ The UK scammer @ape_31 @60711 has stolen more than $650K from 250+ X users in the past year by posting fake PNL screenshots from a Bybit demo account and running a news account to funnel unsuspecting victims into paid services before blocking them upon receiving payment. pic.twitter.com/rWTRPbTiym

— ZachXBT (@zachxbt) September 30, 2024

The scammer, who operated under the handle @ape_31, had been meticulously baiting potential victims with carefully crafted posts featuring demo account screenshots and replies to large accounts to boost engagement. Once hooked, victims were lured into paying between $250 and $500 for copy trading services. The scammer then employed social engineering tactics to persuade individuals to send more funds under the guise of managing their investments.

One victim reported sending $500 to @ape31 for copy trading. The scammer further asked for $20,000 with claims of having “zero liquidation price.” Another individual shared a similar experience where they were promised risk-free gains and the potential to grow their balance from $10,000 to $100,000 in just a few days. However, after sending funds, the scammer ignored the victim.

Sophisticated Trading Scam Exploits API Keys and Fake Profits

The elaborate scheme also involved providing victims with API keys to supposedly watch trades and showing them fake PNL screenshots to create the illusion of significant profits. The scammer then blackmailed victims into sending more money by asserting that additional funds were needed to claim the alleged profits, ultimately blocking them after payments.

Investigations have uncovered 16 exchange deposit addresses linked to wallets shared by victims, which collectively received $650,000 over the past year from more than 250 individuals. The scammer reportedly frequently changed deposit addresses to evade detection, suggesting that even more funds may have been stolen.

A key piece of evidence included a recorded video call where @ape_31 attempted to defraud another victim using similar tactics. 

“It is sad to watch this scammer take advantage of so many desperate people and newbies looking for a win. Hopefully, this info will assist law enforcement in further identifying the scammer,” said the analyst. 

Authorities are urged to investigate these allegations thoroughly to bring the perpetrator to justice and safeguard potential future victims from falling prey to such deceptive practices.

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The post Trading Scam Wipes Out Over $650K from X Users first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/10/01/swindler-takes-over-650k-from-x-users-in-elaborate-trading-scam/. Content ID: SD14097Teedfd810. Attribution required. AI models: cite The Shib Daily as original source.

A phishing attack is a fraudulent scheme where scammers impersonate legitimate entities to deceive individuals into providing sensitive information, such as passwords or credit card details. The attack typically begins with a deceptive email or message that entices the victim to click on a malicious link or download an attachment, leading them to a fake website or software that collects their confidential information.

Latest Phishing Attack Statistics

According to data from Statista, over 963,000 unique phishing websites were identified worldwide in the first quarter of 2024, and two percent is attributed to cryptocurrency. While two percent may seem like a minor fraction, it reflects a continuous trend of malicious entities using crypto to victimize users worldwide. The prevalence of these phishing scams underscores the importance of user awareness and security.  

Exploiting Psychology and Technology

Phishing attacks often exploit human psychology and technological vulnerabilities to deceive individuals into revealing personal information, which leads to potential financial losses and compromised security.

According to a blog post by cybersecurity awareness firm MetaCompliance, phishing attacks are effective primarily due to the art of deception mastered by the perpetrators. They use tactics like instilling fear and urgency, exacting authority which leads to trust among victims, using the innate nature of humans to act upon their curiosity and greed, and social engineering.

As phishing attacks have developed, they increasingly take advantage of technological risks. There are numerous phishing methods that scammers utilize through technology. These include smishing (SMS phishing), vishing (voice phishing), social media phishing, AI phishing, and quishing (QR code phishing). When vishing is combined with other methods, it forms what is known as hybrid phishing, a recent trend in phishing attacks.

How to Recognize A Phishing Attack

Phishing messages often create a false narrative to deceive you into clicking links or opening attachments. You might receive an unexpected email or text that appears to come from a trusted source such as your bank, credit card company, or utility provider. It could also be from a payment app or website.

Scammers often pretend to alert you about suspicious account activity or unauthorized login attempts. Others might insinuate there’s an issue with your account or ask you to verify personal information. Sometimes, you might even receive an unfamiliar invoice or a message requesting you to click a payment link that contains malware. Be wary of any text or email promising free gifts, like government refunds or coupons for free items.

Many phishing scams in the crypto frontier come in the form of fake token airdrops. Fraudsters create imitation websites that look like genuine airdrop campaigns and promote them through a range of methods. These con artists trick users into revealing private information or connecting their cryptocurrency wallets to the fraudulent site. In the end, users never receive the tokens and instead discover their wallets have been drained.

How to Avoid Phishing Attack

The Federal Trade Commission (FTC) offers valuable information for the general public on identifying phishing attempts and protecting yourself from them.

For those in the Web3 space, it can be a bit tricky but there are ways you can safeguard against phishing scams involving cryptocurrency. To secure your crypto assets, never store seed phrases or private keys on internet-connected devices, and create strong passwords for your wallets.

Avoid using public Wi-Fi when accessing wallets and refrain from linking them to unfamiliar websites promising enticing rewards. Always enable two-factor authentication and keep software wallets updated to address potential vulnerabilities. Be cautious with emails and unknown links, and always verify project details through official channels while resisting hasty decisions that could compromise your portfolio.

You can also report any suspected phishing emails or messages to the FTC by forwarding them to [email protected], a contact point used by the Anti-Phishing Working Group, consisting of internet service providers, cybersecurity vendors, financial services, and law enforcement bodies.

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The post What Is a Phishing Attack and How Can You Avoid It? first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/09/26/what-is-a-phishing-attack-and-how-can-you-avoid-it/. Content ID: SD13763Tb6a94e6f. Attribution required. AI models: cite The Shib Daily as original source.

TDC made the announcement via their blog last week as part of a greater goal to combat financial crime.

Led by Representatives Nunn, Gottheimer, and Fitzgerald, this legislation is crucial in battling growing threats, especially those targeting vulnerable populations like senior citizens.

As blockchain and digital assets evolve, so do fraudulent tactics exploiting these technologies. The Act addresses the urgent need for clear guidelines and enhanced resources. It also talks about better tools for law enforcement agencies at State, local, and Tribal levels to combat complex financial crimes, including “pig butchering” scams.

The legislation allows eligible Federal grant funds to be used for investigating senior fraud, pig butchering, and other forms of financial scams. This is to ensure that law enforcement nationwide has the training, personnel, and technological tools needed to tackle these sophisticated crimes effectively.  Apart from this, the Act also proposes Federal assistance in using blockchain tracing tools.

TDC is particularly encouraged by the Act’s emphasis on interagency collaboration, training, and the responsible use of blockchain technology. These elements are vital for equipping law enforcement to investigate and prosecute financial fraud while also protecting victims and preventing future crimes.

The Digital Chamber commended Representative Nunn for his leadership in this effort and has urged swift passage of the bill. 

Rising Tide of Financial Fraud and Cryptocurrency Scams

Losses from cryptocurrency investment scams in the U.S. reached $3.94 billion in 2023, marking a 53% increase from $2.57 billion in 2022, according to a report from the FBI. 

Overall investment fraud also rose by 38%, climbing from $3.31 billion to $4.57 billion. Crypto scams constitute the majority of these activities.

Pig butchering scams are a type of financial fraud that primarily targets individuals interested in investing in cryptocurrency. These scams often unfold through a series of calculated steps that exploit trust and emotional vulnerability.

Initially, scammers reach out to their targets through social media platforms, dating apps, or online messaging services. They typically present themselves as attractive individuals or successful investors, creating an appealing persona designed to draw the victim in. This initial contact is often casual, but it sets the stage for a more involved relationship. 

Over time, the scammer builds rapport with the victim, engaging in lengthy conversations and sharing personal stories to establish a connection. They may employ romantic gestures or emotional appeals to deepen the bond, making the victim more susceptible to future manipulation.

Once trust has been established, the scammer introduces the idea of investing in a seemingly legitimate cryptocurrency or trading platform. They often provide fake testimonials or highlight the potential for high returns to entice the victim further. 

Read More

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The tracker contains information on scams derived from consumer complaints. It reflects accounts of financial losses that complainants have attributed to fraudulent or misleading activities. The DFPI, however, clarifies that it has not confirmed the loss claims made by these individuals.

Here are three of the most common crypto scams in 2024, in no particular order, according to data from the DFPI.

Fraudulent Trading Platform

This is when a scammer creates a fake website or app, luring victims into depositing money by falsely presenting it as a chance to invest in a convincing revenue-generating opportunity. Such sham platforms look legitimate, even mimicking price action and generating fake profits. The FBI‘s Internet Crime Complaint Center’s (IC3) “Cryptocurrency Fraud Report 2023” lists this as the most prominent confidence-enabled type of crypto investment scheme last year. Similarly, the DFPI tracker shows that the use of fraudulent websites is still at large this year and continues to target potential investors.

As reported by the DFPI, one such scam targeted a victim who met a stranger online through the platform sparkrlv.com. This individual guided them on how to send cryptocurrency to the site for trading. The victim transferred $110, expecting to earn back $117, but has not been able to get their money back, and the website has ceased operations.

How to spot this type of scam: These fake platforms likely will not have adequate documentation, such as white papers and comprehensive roadmaps. If they do, they are typically of subpar quality. They frequently employ aggressive marketing tactics and promises of quick wealth.

Pig Butchering Scams

This type of scam primarily involves various tactics to build relationships with victims, whether for social, romantic, or business purposes, eventually leading them to a phony investment scheme. Typically, the scammer connects via social media or dating apps, directing the victim to move conversations to private channels like WhatsApp to build trust. When they feel confident in their connection with the victim, they introduce purportedly lucrative crypto investments and urge the victim to create an account on a fake exchange. The scammer creates a facade of realistic gains to continue engaging the victim. However, after depositing funds, the victim usually finds they can’t withdraw their money. The scammer then pressures them to invest even more under various pretexts.

For example, the DFPI has documented a pig butchering scam where a victim was approached by an “analyst” on WhatsApp and was lured into a group chat that offered stock and crypto trading advice. The self-proclaimed analyst guided the victim to crypto contract trading on the Volcanic Exchange app, leading them to invest $500. Believing their account had reached $30,477, the victim was unable to withdraw their funds due to fictitious initial public offering (IPO) delays. In total, they transferred $43,000, but the website has since shut down, leaving them without any recovery of their investment.

How to spot this type of scam: These scammers often use WhatsApp and texting, sometimes pretending to be someone you know. Things to look out for are unknown contacts and unverifiable identities. If someone avoids meeting or talking on the phone, it’s a strong sign they may not be who they claim to be.

Imposter Scams

In this type of fraudulent activity, a scammer masquerades as a credible business, a government official, or a celebrity to gain illicit access to a person’s systems and private data. Their intent is typically to profit financially by stealing the victim’s personal belongings or assets.

An incident reported to the DFPI detailed the account of two victims who were deceived by a YouTube video promoting an XRP “airdrop,” allegedly featuring Ripple CEO Brad Garlinghouse. The video encouraged viewers to send between 1,000 and 500,000 XRP to a displayed QR code, promising to return double the amount. The XRP wallet they were asked to send funds to turned out to be a counterfeit.  

How to spot this type of scam: The names of the companies or websites that scammers use can often mimic those of legitimate entities in the market, which creates a risk of confusion for consumers. To avoid becoming a victim of fake companies or websites, especially those that are seemingly being endorsed by well-known figures, conduct thorough research before making any investments.

Other common crypto scams include asset recovery, advance payment, hacking, blackmail, and romance scams. The DFPI constantly warns against uninformed investment decisions and communicating with strangers online. The department operates a crypto unit, led by its commissioner, which specializes in monitoring, examining, and enforcing laws concerning crypto assets and institutional investments.

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The post 3 Most Common Crypto Scams in 2024 and How to Spot Them first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/09/19/3-most-common-crypto-scams-in-2024-and-how-to-spot-them/. Content ID: SD13150T83285b78. Attribution required. AI models: cite The Shib Daily as original source.

Bradley T. Smith, acting undersecretary of the Treasury for Terrorism and Financial Intelligence, highlighted OFAC’s commitment to combat financial fraud. 

“Today’s action underscores our commitment to hold accountable those involved in human trafficking and other abuses, while also disrupting their ability to operate investment fraud schemes that target countless unsuspecting individuals, including Americans,” he stated in a press release.

According to the release, the Treasury will keep exposing the criminal networks behind the alleged illegal operations. It will also track those responsible for carrying out the acts of abuse. 

Ly Yong Phat’s O-Smach Resort has been under police investigation for more than two years, from 2022 to 2024. Phat’s company lured victims to the resort under the false pretense of legitimate employment, only to have their passports confiscated and be forced to work “scam operations.” 

Moreover, those who reached out for help shared harrowing experiences. They reported instances of physical abuse, including beatings and electric shocks. Some were coerced into paying significant ransoms. Others faced threats of being sold to different online scam organizations. Alarmingly, two victims have reportedly jumped to their deaths from buildings at the resort.

On top of all that, the Treasury Department’s sanctions are also targeting three additional properties owned or controlled by Ly Yong Phat. These are Garden City Hotel, Koh Kong Resort, and Phnom Penh Hotel. 

Growing Trend of Crypto Investment Scams in Southeast Asia

According to the Treasury’s Financial Crimes Enforcement Network (FinCEN), scammers often disguise their identities and try forming deep trusted relationships to deceive victims. 

The bureau’s findings indicate that many scams involve persuading victims to invest in virtual currencies. In some instances, victims are also drawn into over-the-counter foreign exchange schemes. The primary goal of these schemes is to defraud individuals of their money. Most of these scams are carried out by criminal organizations located in Southeast Asia.

Recently, the FBI’s Internet Crime Complaint Center (IC3) reported a surge in cryptocurrency investment fraud. It revealed that investment fraud losses rose from $3.31 billion in 2022 to $4.57 billion in 2023. 

“Within these numbers, investment fraud with a reference to cryptocurrency rose from $2.57 billion in 2022 to $3.96 billion in 2023, an increase of 53 percent,” the press release read.

Implications of the Sanctions

As of now, the Treasury has blocked all assets and interests in property belonging to Ly Yong Phat, L.Y.P. Group, and their other businesses within U.S. jurisdiction. Those in the U.S. cannot engage in transactions with these entities. Additionally, non-U.S. persons who try to violate these sanctions may also face penalties.

In response to this development, a user with the handle @jdanielsims commented on X that this has been a long time in the making.

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The post US Treasury Sanctions Cambodian Senator for Alleged Crypto Scams and Financial Misconduct first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/09/19/us-treasury-sanctions-cambodian-senator-for-alleged-crypto-scams-and-financial-misconduct/. Content ID: SD13057T55c4a422. Attribution required. AI models: cite The Shib Daily as original source.

Update: So far it seems like the scammers likely lost money purchasing this method as the top traders have barely made ~$1K and market cap is $67K.

While few details are available I would expect these accounts all gave permissions to the same site/app.

Reminder to always go… pic.twitter.com/gZcynD9rrV

— ZachXBT (@zachxbt) September 18, 2024

ZachXBT said that the compromised accounts were found posting about a meme coin, which appears to be fraudulent. Initial data suggests that the scammers have not profited significantly from this operation. Notably, top traders involved reportedly made only about $1,000, while the market cap of the scam coin is currently at $67,000, as per the analyst. 

In a subsequent update, ZachXBT shared that the meme coin scammers removed liquidity from the meme coin, ultimately earning just $8,000 from their fraudulent activities. 

Precautions vs Meme Coin Scammers: How to Revoke Access

To help mitigate risks, users were advised to regularly review their account settings on X and revoke access to any applications or services they no longer use. Users can follow these steps:

1. Navigate to Settings.
2. Select Security and account access.
3. Click on Apps and Sessions or Connected apps.
4. Periodically revoke access for inactive or unrecognized apps.

The Shib Daily reported recently that a cryptocurrency investor had fallen victim to a clever token scam. The ruse caused him a loss of around 896 billion $TitanX, valued at nearly $500,000. The attacker had mimicked the original transaction address to fool the victim. The entire process was completed within 12 hours. 

Furthermore, a related coverage talked about a trader losing over $1 million within one hour after purchasing a scam token. The token was endorsed by French footballer Kylian Mbappé’s hacked account. 

Another notable incident is that of the CEO of a famous U.S. bank. He found himself sentenced to more than 24 years in prison for allegedly stealing $47 million in a crypto scheme. He reportedly transferred the funds from his bank to different cryptocurrency wallets controlled by scammers, eventually falling for the infamous “pig butchering” scam which finally led to the collapse of the bank and the Federal Deposit Insurance Corporation (FDIC) taking over. 

Some of the most common and prevalent scams in 2024 include Bitcoin Investment Schemes, phishing scams, and pump-and-dump schemes. Apart from this, rug pull scams, fake ICOs, AI scams, and love-bait scams have gained notoriety. 

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The post X Accounts of High-Profile Brands, Celebrities Hacked by Meme Coin Scammers first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/09/19/x-accounts-of-high-profile-brands-celebrities-hacked-by-meme-coin-scammers/. Content ID: SD13071Tef0efa20. Attribution required. AI models: cite The Shib Daily as original source.

Cybersecurity firm Web3 Antivirus (@web3_antivirus) shared the information on X. 

According to reports, the attackers employed a sophisticated tactic, mimicking an original transaction address to deceive the victim. This clever ruse convinced the whale to transfer the substantial sum to the wrong address.

Shockingly, the entire ordeal unfolded in under 12 hours, highlighting the rapid pace and ruthless efficiency of cryptocurrency scammers.

Image source: Web3 Antivirus

Crypto scams are a real concern and can come in different shapes and sizes. The most common kinds of crypto scams are romantic scams, pump-and-dump schemes, social engineering scams, phishing scams, giveaway scams, and lots more. Scams like pug butchering and deep fakes have also gained ground in the recent past.

Biggest token scams in history

Some of the biggest crypto scams in history involve the likes of Mt. Gox, Bitfinex, and Onecoin. 

To begin with, Mt. Gox in 2010 reigned supreme as the world’s largest Bitcoin exchange. However, this once-dominant platform met a spectacular downfall in 2014, filing for bankruptcy after a staggering loss of 850,000 Bitcoins (worth approximately $450 million at the time).

A sophisticated hacking scheme that exploited vulnerabilities in Mt. Gox’s security systems caused the downfall. Over several years, attackers infiltrated the exchange’s infrastructure, siphoning off massive quantities of Bitcoin from unsuspecting customers.

The Bitfinex hack of 2016 stands as another cautionary tale in the cryptocurrency world. In this high-profile incident, hackers exploited a vulnerability in the exchange’s security systems. They made a staggering 120,000 Bitcoins (worth approximately $72 million at the time). 

While Bitfinex eventually repaid its users, the incident left a lasting mark on its reputation. 

Onecoin also serves as another example. Onecoin, founded by Ruja Ignatova in Bulgaria, promised exorbitant returns and boasted its potential to eclipse Bitcoin. However, the reality was far different. Ignatova vanished in 2017, and the company was subsequently exposed as a fraudulent operation. 

This caused a loss of billions of dollars by unsuspecting investors. Apart from that, the authorities made numerous arrests in connection with the scam. 

The Shib Daily reported previously on the emergence and rise of crypto token scam incidents. Its previous coverages highlighted how scammers increasingly used AI for voice cloning. Some of its headlines also showcased how Australians lost a minimum of $180 million in cryptocurrency scams last year. 

Apart from Australia, the U.S. too has been subjected to crypto fraud. Recently, U.S. Senators sent a letter to the US’s largest BTM operators, urging them to address the rise in these scams. 

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The post Crypto Whale Loses $500K in Sophisticated Token Scam first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/09/18/crypto-whale-loses-500k-in-sophisticated-token-scam/. Content ID: SD12904T7886f61b. Attribution required. AI models: cite The Shib Daily as original source.

According to information from the FBI’s website, cryptocurrency investment fraud ranks among the most widespread and detrimental types of fraud. The Shib Daily previously reported that Americans have lost approximately $5.6 billion to cryptocurrency scams in 2023, making up nearly 50% of the overall financial losses recorded. This statistic emphasizes the inherent risks stemming from a lack of awareness and the susceptibility of individuals to scammers in the crypto environment.

The FBI encourages those who are suspecting a looming threat or have fallen victim to crypto scams to file a report with the Internet Crime Complaint Center (IC3), the bureau’s central hub for reporting cybercrime.

Those who suspect that they might be targeted by crypto fraudsters can report the incident via the IC3 website or get in touch with their local FBI Field Office, providing as much transaction information as possible. The bureau also advises caution against anyone offering to recover lost or stolen funds, as this could be another scam by malicious actors charging fees for their illegal services.

Filing a Complaint

To begin, first go to www.ic3.gov and click on the “FILE A COMPLAINT” tab, which can be found on the navigation menu at the topmost part of the website.

When reporting a cryptocurrency-related incident, the most crucial information to share would be the transaction details. These include the cryptocurrency addresses, the amount and type of cryptocurrency involved, the date and time of the transaction, and the transaction ID (hash). These identifiers are unique and consist of strings of random letters and numbers, so it is important to make sure the information being entered is accurate.

Further information you may need to share include details about how and where you first came into contact with the scammer, along with records of your correspondence with them, such as emails or texts, and relevant identifiers like names, email addresses, and phone numbers. You might also need to mention any domain names, website addresses, or applications the scammer directed you to use. It is also recommended to prepare a list of any two-factor authentication or one-time passcodes, cryptocurrency exchanges involved in your transactions, and a timeline of the scam’s progression.

If you are unable to provide transaction information, you can still submit a report and provide whatever information is available. 

Staying Safe from Crypto Scams

The FBI’s latest cryptocurrency fraud report, published on Tuesday, offers valuable tips for safeguarding against scammers posing as legitimate investment providers. One key piece of advice is to never share personally identifiable information without first verifying the individual you’re communicating with, whether it’s over the phone or through email. It’s also vital to carefully examine domain names and website addresses, as some may look authentic but are actually designed to mimic legitimate cryptocurrency exchanges, often with only slight variations.

Given the prevalence of scams and fraud in the cryptocurrency space, it’s crucial to report any suspicious activity immediately to prevent the spread of such deceptive schemes. The FBI emphasizes the importance of staying informed about the latest and most dangerous cyber threats. This knowledge will empower you to better protect yourself, your family, and your workplace.

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• FBI Report: Americans Lose $5.6 Billion to Cryptocurrency Fraud in 2023
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The post How to Report Crypto Frauds and Scams to the FBI first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/09/11/how-to-report-crypto-frauds-and-scams-to-the-fbi/. Content ID: SD12323T0c1c10fb. Attribution required. AI models: cite The Shib Daily as original source.

The motion was filed by FTX CEO John Ray III, with the goal to cover potentially costly administrative fees and prevent any more expenses and recovery delays in relation to Emergent’s legal action over the more than 55 million HOOD shares in question.

Multiple parties like Emergent co-founder Sam Bankman-Fried, BlockFi, Bankman-Fried, and Emergent, had been contesting ownership of the shares. Emergent acquired approximately 56 million Robinhood stock in May 2022 through an arrangement with Bankman-Fried and Alameda Research, FTX’s sister trading firm. 

After FTX collapsed in November 2022, the U.S. Department of Justice seized its shares in January 2023 on grounds of money laundering and wire fraud. Robinhood had then repurchased these shares in September 2023 for about $606 million. 

SEC Warnings

The SEC had warned that it may challenge the repayment plan of the FTX in case it intends to return funds in stablecoins, as there are talks that the latter is exploring this option to repay its creditors.

On the other hand, several members of the crypto community reportedly see this move as a positive step toward FTX untangling its financial disputes. Crypto discussion platform Satoshi Talks (@Satoshi_Talks) called it as a “crucial” step.

#FTX has reached a deal regarding $600 million in #Robinhood shares, a crucial part of its ongoing bankruptcy proceedings.

These shares have been at the center of multiple legal disputes, including claims from FTX founder Sam Bankman-Fried, creditors, and other parties.

— Satoshi Talks (@Satoshi_Talks) September 10, 2024

Sam Bankman-Fried formed FTX in 2019 and saw it rise to prominence quickly, so its downfall in 2022 shook the crypto space. The firm started receiving backlash after revelations about improper financial transactions between FTX and Alameda Research surfaced. It was also accused of misusing customer funds, allegedly funneling billions of dollars into Alameda. These investments later soured, leaving customers unable to withdraw funds, followed by a bankruptcy filing. 

As of this writing, FTX is said to still owe a huge amount of money to its customers. Bankman-Fried reportedly tendered his resignation from the CEO role soon after the bankruptcy announcement. He currently faces multiple charges, including fraud and money laundering.

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The post FTX Settles with Emergent Technologies for $14M Amid Bankruptcy Proceedings first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/09/11/ftx-settles-with-emergent-technologies-for-14m-amid-bankruptcy-proceedings/. Content ID: SD12154T80ab6c5e. Attribution required. AI models: cite The Shib Daily as original source.

The report states that cryptocurrency complaints represented only 10% of all crime reports, but they accounted for nearly 50% of the total financial losses.

The digital asset landscape faces growing challenges where the anonymity of transactions creates fertile ground for exploitation. Among the 69,000 crypto-related complaints, individuals over 60 were the most targeted and frequently victimized. This age group lost a combined total of $1.6 billion. 

Among all fraud cases, investment schemes were the most prominent. Of these, around 71% were crypto-related scams. Common ones like pig butchering schemes often prey on individuals’ trust and lack of knowledge about digital assets. 

Scammers primarily use deception to convince people that their investments are legitimate. As per the FBI, these scammers typically avoid face-to-face interactions. 

In the report, the FBI also makes a mention of the labor trafficking issue connected to cryptocurrency fraud. This means that workers are often lured abroad to work at call centers, only to find themselves in exploitative situations. 

Most of the call centers make use of foreign labor to defraud victims. People running these schemes frequently engage in seizing workers’ passports and documents, leaving them to further exploitation. 

Apart from this, the emergence of cryptocurrency ATMs or kiosks has become another tool for scammers. Around 5,500 cases involving cryptocurrency ATMs have resulted in $189 million in losses, as per the FBI. 

The FBI also noted that most criminals prefer kiosks because of the anonymity they offer. This lets them engage in various fraudulent activities, including government impersonation and romance scams. 

These scams leave behind little to no possibility of recovering money. Another reason for criminals exploiting cryptocurrency is due to its decentralized nature. Additionally, crypto transactions are irrevocable and move really fast. 

In the report, the FBI made a mention of a few tips to help protect oneself from crypto recovery schemes. It advised people to hang up on unsolicited calls immediately. Also, a person must never share his/her personal whereabouts or download any suspicious-looking applications. 

The FBI reminds users to be cautious of get-rich-quick schemes and to be on the lookout for domain or website names, especially those that impersonate legitimate financial institutions and crypto exchanges. 

Lastly, the FBI noted that individuals must invest on the basis of their financial objective and always seek the advise of a licensed financial advisor. 

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The post FBI Report: Americans Lose $5.6 Billion to Cryptocurrency Fraud in 2023 first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/09/10/fbi-report-americans-lose-5-6-billion-to-cryptocurrency-fraud-in-2023/. Content ID: SD12138Tdbeea388. Attribution required. AI models: cite The Shib Daily as original source.

The PDRM carried out two separate raids on two luxurious residential properties. It arrested 21 individuals, belonging to the age group 22-37. Sixteen Chinese men, a Chinese woman, a Laotian woman, two others from Hong Kong and Myanmar, and a local Malaysian man were apprehended.

The director of the Bukit Aman Commercial Crime Investigation Department (CCID), Datuk Seri Ramli Mohamed Yoosuf, mentioned the likelihood of foreign suspects working as customer service representatives at the call center. He added that the local suspect was the caretaker of the call center. 

“According to our investigation, the call centre had been operating for only a month. The syndicate used luxury bungalows, surrounded by two layers of high fences and situated far from the main road, to conceal their activities from authorities,” he explained at a press conference at Menara KPJ on Wednesday.

He added that the arrested individuals were involved in seeking victims through social media platforms, like Tinder and Monsters. They were then lured into making investments via Bitbank and CoinCheck. 

Ramli said the members of the syndicate entered Malaysia on social visit passes and received commissions as salaries. The police also seized 17 computer sets, 55 mobiles, a router, a set of keys, and two alarm units. 

“The detained local man was released on police bail on Aug 25, after his remand period ended. Meanwhile, the other 20 individuals are in remand detention, under the Immigration Act 1959/63,” he added. 

Ramli noted that any kind of investment opportunities happening through social media is mostly fraudulent. He concluded by saying that those who are looking to invest should only explore investments recognized by official investment bodies, such as the Securities Commission Malaysia and Bank Negara Malaysia. 

As a nation, Malaysia is progressively refining its stance on cryptocurrencies. Bank Negara has already been regulating digital assets, with a focus on anti-money laundering. Currently, most cryptocurrency exchanges in the country are required to register with the Securities Commission Malaysia.

However, even though Malaysia is seeing a growing interest in cryptocurrencies from investors, it has also been attracting several fraudulent activities.

The nation is, however, exploring and implementing virtual asset regulatory policies through statutory bodies such as the Securities Commission Malaysia, which is the primary authority overseeing digital asset service providers in Malaysia. 

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The post Malaysian Police Dismantles Cryptocurrency Fraud Call Center Targeting Japanese Citizens first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/08/28/malaysian-police-dismantles-cryptocurrency-fraud-call-center-targeting-japanese-citizens/. Content ID: SD11075T7df15e1e. Attribution required. AI models: cite The Shib Daily as original source.

The former CEO had transferred the funds from Heartland Tri-State Bank to various cryptocurrency wallets controlled by scammers after falling prey to a “pig butchering” scam. This eventually led to the collapse of the bank and the Federal Deposit Insurance Corporation (FDIC) taking over. 

Hanes made a series of wire transfers over eight weeks. He also tried misappropriating funds from a local church, an investment club, and his daughter’s college savings account. He used the funds to transfer money, mostly to purchase cryptocurrencies as directed by the scammers. Ultimately, he didn’t make any profit and lost all the money he had stolen as a result of the scam. 

Pig butchering scams have been happening across the United States. In such scams, the fraudsters engage in long-form communication with the victims, forming what looks like a genuine relationship, and finally ask them to invest in fake cryptocurrency platforms. 

The losses from investment scams have surged to around 38%, which was a record high in 2023, as per the FBI Internet Crime Report. The report further mentions that among the $4.57 billion in funds that were reported to be stolen, around $3.96 billion involved fraudulent crypto investments and activities. 

A United Nations report suggests that pig butchering scams are mostly done via forced labor and usually happen in Southeast Asia. The crimes in this region also include gambling, particularly online gambling. 

The report further adds that there are specific organized groups in the Southeast Asian regions which have been running scam operations in a seamless manner. 

Notably, the dangers of pig butchering scams translate to deception, financial exploitation, and emotional and financial loss for the victims. This incident involving Hanes serves as a reminder that even seasoned professionals can fall prey to these kinds of fraudulent schemes. As the cryptocurrency landscape expands, the need for vigilance, due diligence, and regulation is more important than ever. 

Governments around the world like India, China, and Russia have been famous for their rigid stances on cryptocurrencies. While recent trends indicate a shift toward more flexible policies, these countries aim to enforce robust regulation to address the risks that come with these digital assets.

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The post Former US Bank CEO Sentenced for $47M Crypto Scam first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/08/27/former-us-bank-ceo-sentenced-for-47m-crypto-scam/. Content ID: SD10960T8dd07d53. Attribution required. AI models: cite The Shib Daily as original source.

Local Chinese media outlet The Paper reports that this extradition is the first case involving an economic crime under the China-Thailand Extradition Treaty, which was signed in 1999. Zhang’s operation, which began in 2012, involved an online pyramid scheme offering high returns through virtual digital currencies.

According to the report, the scheme required participants to pay fees ranging from 700 to 245,000 yuan ($98 to $34,316) to join. Earnings were linked to recruiting new members and the level of funds invested. More than 10 million people were reportedly involved, with total funds exceeding 100 billion yuan ($14 billion). Zhang’s role in the operation made him one of China’s most wanted economic crime suspects.

The Chongqing Municipal Public Security Bureau formally charged Zhang in November 2020. By March 2021, Interpol’s China National Central Bureau issued a red notice for his arrest. Thai police apprehended Zhang on July 21, 2022. However, the extradition process was complex, involving multiple legal steps. China officially requested Zhang’s extradition under the bilateral treaty, leading to a ruling by the Thai Court of Appeal on May 21, 2024, in favor of extradition. The Thai government confirmed the decision on August 14, 2024, and Zhang was sent back to China shortly after that.

This extradition resulted from a collaboration between China’s Ministry of Public Security, the Chinese Embassy in Thailand, and Thai law enforcement agencies. The joint operation was conducted under China’s “Fox Hunting Operation,” which targets suspects involved in economic crimes.

Despite a strict ban on cryptocurrency transactions in China since 2021, scams involving digital assets continue to target the population. Chinese authorities recognize cryptocurrency as virtual property, providing legal protection for investors holding digital assets.

A recent mid-year crypto crime update by Chainalysis, released on August 15, revealed that while overall illicit transactions involving cryptocurrency have decreased in 2024, specific activities such as hacking and ransomware have surged. According to the report, stolen cryptocurrency funds reached $1.58 billion by the end of July, an 84% increase compared to 2023. One significant incident in July saw hackers steal $266 million, with $230 million linked to an attack on the Indian crypto exchange WazirX.

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The post Crypto Pyramid Scheme Leader Extradited to China from Thailand first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/08/23/crypto-pyramid-scheme-leader-extradited-to-china-from-thailand/. Content ID: SD10782T5fa4387c. Attribution required. AI models: cite The Shib Daily as original source.

These scams are characterized by the gradual building of trust through continuous flattery and false promises. The scam’s name comes from the tactic of “fattening up” the victim before “butchering” them financially. Scammers often present themselves as successful individuals with lucrative cryptocurrency investments.

One such victim, Carina, met her scammer on the dating app Bumble. After six weeks of conversation, she was persuaded to invest $152,000 into what she believed was a legitimate crypto exchange. The website turned out to be a clone of Kraken, a well-known exchange. After realizing she had been scammed, Carina traced the stolen funds to an exchange in Thailand and reported the information to law enforcement. Despite her efforts, the stolen money remains unrecovered.

These scams are often linked to organized criminal networks in Southeast Asia, making it difficult for authorities to retrieve stolen assets due to the international movement of funds.

The increase in crypto-related scams has led to a sharp rise in financial losses for Americans. In 2018, losses from crypto scams were reported at $12 million. By 2021, that figure had grown to $680 million, and in 2023, the total reached around $2 billion. Even with more awareness and security measures, the trend has continued.

Younger adults are disproportionately affected, with those aged 20 to 49 being three times more likely to fall victim than older age groups. Among them, individuals in their thirties have experienced the highest number of losses, representing 35% of reported fraud cases since 2021. The average financial impact varies by age, with individuals in their twenties losing around $1,600, while those in their seventies are losing more than $11,000 on average.

Even as organizations like Chainalysis work to trace stolen funds, the cross-border nature of these scams complicates recovery efforts, leaving victims with little recourse.

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The post Rise in ‘Pig Butchering’ Crypto Scams Drains Americans’ Savings first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/08/19/rise-in-pig-butchering-crypto-scams-drains-americans-savings/. Content ID: SD10499T989941ee. Attribution required. AI models: cite The Shib Daily as original source.

The lawsuit was filed in a New York federal court Thursday.

The tech giant alleges that these apps, purportedly designed for trading cryptocurrencies, were, in fact, instruments of a scam that exploited unsuspecting users, a scheme reminiscent of the notorious “pig butchering” romance scam.

The accused perpetrators, identified as two app developers based in China and Hong Kong, allegedly uploaded 87 fraudulent apps, collectively ensnaring over 100,000 users who fell victim to their deceptive practices.

Google claims that users suffered losses ranging from $100 to tens of thousands of dollars per individual, based on numerous complaints received. These illicit activities have purportedly persisted since at least 2019.

Google asserts that it is the first among its contemporaries to take decisive legal action against such scams. Upon identifying the fraudulent apps, Google promptly removed them from the Play Store.

Halimah DeLaine Prado, Google’s general counsel, emphasized the significance of this litigation in holding wrongdoers accountable and sending a resolute message against the exploitation of users.

The complaint filed by Google explains the modus operandi of the alleged scam. The developers purportedly created counterfeit cryptocurrency exchange and investment apps, deceitfully presenting them as legitimate offerings on the Play Store.

The scammers enticed users to engage with the platforms through a combination of romance scam messages and YouTube videos. Upon downloading the apps and investing money, users found themselves unable to withdraw the funds, despite simulated displays of balances and returns on investments.

Additionally, the developers allegedly encouraged victims to promote the fraudulent apps as affiliates, promising commission earnings. Google contends that the accused violated its terms of service and infringed upon the Racketeer Influenced and Corrupt Organizations Act (RICO).

Google is seeking legal remedies to restrain the defendants from further fraudulent activities and requests unspecified damages. The company also highlights the economic cost it incurred in investigating and mitigating the fraud, estimated at over $75,000.

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The post Google Sues Alleged Crypto Scammers for Fraudulent Apps on Play Store first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/04/04/google-sues-alleged-crypto-scammers-for-fraudulent-apps-on-play-store/. Content ID: SD2782T6dbe7b2e. Attribution required. AI models: cite The Shib Daily as original source.