CoinMarketCap Targeted in Scam to Steal Crypto

  • By Steven
  • Aug 23, 2022

Yet another cryptocurrency platform has been struck by digital criminals. CoinMarketCap is the victim this time around. It appears as though hackers plucked more than six figures' worth of cryptocurrency from the platform. Here is a quick look at how the crypto heist went down.

How did the Hack Occur?

An external audit specialist hired by the company to analyze its digital security first identified the hack. The auditors found signs of what turned out to be an elaborate scheme to steal cryptocurrency from those with virtual wallets on the website. More specifically, the hackers accessed the Cryptown social platform owned and operated by CoinMarketCap to steal the virtual funds.

The crypto theft is ultimately the result of scammers obtaining access to the administrator controls. The admin was used to generate several accounts on the crypto trading platform. The scammers used those accounts to spread the word about an upcoming sale of digital tokens. One such account seemed to be a legitimate CoinMarketCap account that mentioned the token availability.

Why did Victims Fall for the Trap?

The criminals responsible for the hack made it appear as though the token sale was perfectly legitimate. The hackers used the verified and 100% official account of CoinMarketCap to announce the upcoming token sale. As a result, people assumed the sale was authentic and took the bait, ultimately allowing the hackers to access more than $100,000 worth of crypto.

The link used on the phony CoinMarketCap account used for manipulative purposes steered the incorrect landing page to a separate scheme. The tokens touted in the scam were supposedly available through the Ethereum and BSC blockchain. The hackers behind the attack posted the fake page in Europe's middle of the night. Unfortunately, this means the users in that part of the globe did not know they were being taken for a ride. 

What was the Response to the Attack?

The hackers' Ethereum address was flagged as fraudulent on Etherscan. However, people still made deposits to the addresses after the accusation of fraud.

How can Businesses and People Avoid Similar Attacks?

Business owners and everyday people should recognize there is an inherent risk of developing a dependency on cryptocurrency for business operations and everyday consumer transactions. Bitcoin, Ethereum, and countless other forms of crypto are prime targets for theft simply because they are new forms of digital currency and laden with weaknesses available for exploitation. 

A business or the everyday person who uses crypto or a digital wallet should be aware of the risk posed by these digital currencies. Invest in the appropriate cybersecurity defenses, and you'll have the confidence you need to move forward without worry. 

If a customer, another business, or other third-party requests that crypto is used as opposed to traditional currency, take a moment to analyze the request and its context. A request for crypto to be transmitted to a third party indicates a potential scam. At the very least, a smart contract and a wallet connected to the site should be in place.

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