Crypto Scams Intensify with Fake Wallet Apps and Telegram Backdoors

by Nik Asti

Published: October 30, 2023 at 12:05 am Updated: October 30, 2023 at 12:05 am

by Victor Dey

Edited and fact-checked:

In Brief

Fake wallet apps and deceptive Telegram tactics contribute to a surge in coin losses for cryptocurrency users.

The cryptocurrency world is no stranger to scams and security breaches, but recent incidents involving fake wallet apps and malicious software on Telegram have led to increasing concerns among investors.

While securing digital assets has always been a focal point in the cryptocurrency industry, recovering stolen or lost assets is notably more challenging. The core of the problem lies in the blockchain’s anonymous nature, making it hard to link a digital wallet to an actual individual. Hence, once assets vanish, freezing the losses or tracking down the perpetrator becomes almost impossible.

Many victims of these scams recall downloading software from what they believed to be official websites. However, a closer inspection often reveals these sites to be phishing links, meticulously designed to imitate the real deal.

For instance, the proliferation of fake websites, especially fake wallet sites like “Bitpie wallet”, has grown thanks to deceptive SEO practices. While the fake site might look identical to the genuine one, an incorrect URL often gives them away.

According to Bitrace, search engine downloads of fake wallet APPs are the reason why many people lose coins. It is also common to implant malicious backdoors into Telegram, which will identify replacement addresses and cause funds to be sent to malicious addresses.…

— Wu Blockchain (@WuBlockchain) October 30, 2023

Telegram: A Breeding Ground for Malicious Activities

Telegram, a popular messaging app among cryptocurrency enthusiasts, has been highlighted as a risk. Cybercriminals have devised methods to insert backdoors into the Telegram app, commonly used in over-the-counter trading. Unsuspecting users, when prompted by these criminals, might end up downloading or updating a fraudulent version of Telegram.

Once the user shares a blockchain address on this compromised platform, the malware springs into action, replacing the genuine address with a malicious one. This deceit ensures that funds inadvertently get transferred to the scammer’s address.

Another tactic employed by these cyber-thieves involves “liquidity mining”. Here, they entice users with promises of high returns with negligible risks. They introduce malicious code into the smart contracts of such sites, allowing them to siphon off the user’s funds once interaction occurs.

To lend authenticity, these scammers often associate their activities with renowned entities like OKX and Binance. However, it’s crucial to remember that even recognized wallets don’t necessarily guarantee asset security.

Following the Money

Bitrace, a firm specializing in analyzing crypto transactions, highlights that tracing the initial processing fees can often lead to the identification of the culprits. Their insights and data-driven methodologies have proven valuable in assisting victims of such fraudulent activities.

The rise of these scams and vulnerabilities highlights the need for enhanced awareness and vigilance in the cryptocurrency space. Ensuring the authenticity of platforms and continuously staying updated about potential threats can go a long way in safeguarding one’s assets. Always remember: in the world of crypto, not everything that glitters is gold.

Disclaimer

Any data, text, or other content on this page is provided as general market information and not as investment advice. Past performance is not necessarily an indicator of future results.

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Nik is an accomplished analyst and writer at Metaverse Post, specializing in delivering cutting-edge insights into the fast-paced world of technology, with a particular emphasis on AI/ML, XR, VR, on-chain analytics, and blockchain development. His articles engage and inform a diverse audience, helping them stay ahead of the technological curve. Possessing a Master’s degree in Economics and Management, Nik has a solid grasp of the nuances of the business world and its intersection with emergent technologies.

Nik Asti