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.

About the Author
IDStrong Logo

Related Articles

Instagram Vulnerability Allowed Hackers Access to Control Your Phone

Security experts Check Point Research discovered a critical vulnerability while examining Instagra ... Read More

Alien Malware Infects More than 226 Mobile Apps and Steals Bank Data

As reported on September 24, 2020, by ZDNet and ThreatPost, a new strain of malware named “A ... Read More

Universal Health Systems Hit by Ransomware Attack

Universal Health Systems (UHS), a Fortune 500 company owning more than 400 hospitals across the co ... Read More

Exchange Server Bug Exposes a Big Risk to Hackers

Months after Microsoft released a patch to fix a serious flaw in MS Exchange Server, more than 61% ... Read More

Clients’ Bank Data Exposed in Blackbaud Ransomware Attack

Blackbaud software was victim to a ransomware attack last May, and new information suggests that c ... Read More

Latest Articles

Caesars Entertainment Gets Hacked, Exposing Countless Gamblers

Caesars Entertainment Gets Hacked, Exposing Countless Gamblers

Caesars Entertainment is one of the largest casino companies in the United States and is well-known for its loyalty program. The company serves countless customers in Las Vegas and elsewhere throughout the world.

Travel Technology Company Sabre Suffers a Vast Data Breach

Travel Technology Company Sabre Suffers a Vast Data Breach

Sabre is a huge technology company that serves as a powerful travel reservation system for many of the major hotels and airlines in the United States.

Weekly Cybersecurity Recap September 15

Weekly Cybersecurity Recap September 15

This week, data breaches were particularly bad, with attacks impacting travel technology giant Sabre, production giant Johnson and Johnson, and medical company Amerita.

Featured Articles

How to Buy a House with Bad Credit

How to Buy a House with Bad Credit

Buying your own home is the American Dream, but it might seem out of reach to those with bad credit. However, the good news is, if your credit is less than perfect, you do still have options and in most cases, can still buy a home.

How Secure Is Your Password? Tips to Improve Your Password Security

How Secure Is Your Password? Tips to Improve Your Password Security

Any good IT article on computers and network security will address the importance of strong, secure passwords. However, the challenge of good passwords is that most people have a hard time remembering them, so they use simple or obvious ones that pose a security risk.

Top 10 Senior Scams and How to Prevent Them

Top 10 Senior Scams and How to Prevent Them

Senior scams are becoming a major epidemic for two reasons. First, seniors often have a lot of money in the bank from a life of working hard and saving.

Free Identity Threat Scan
Instantly Check if Your Personal Information is Exposed
All fields below are required
Please enter first name
Please enter last name
Please enter a city
Please select a state
Please enter an email address