Yi He, co-founder of Binance, is pushing Elon Musk to tackle the rising wave of cryptocurrency fraud on X.
In Brief
Yi He has sounded the alarm about a particularly insidious scam circulating on the X platform, where impostors pose as legitimate users and pressuring unsuspecting individuals to click on harmful links related to meme coins, putting their finances at risk.
Raising urgent concerns, Yi He recently highlighted a disturbing scam taking hold on X and urged Elon Musk to intervene to combat the growing number of fraudulent activities.
Yi He expressed worry over a specific type of impersonation scam that’s been active on X. She shared images of fake accounts that bear striking similarities to her real identity and nickname. In one instance, users were lured to click a link that falsely promised access to Binance-supported meme coins, which Yi He warned could lead to significant financial losses.
She emphasized that clicking on that suspicious link could lead to theft of funds and confirmed that she had not launched any additional MEMEcoins. This hacker trap has deceived many people, causing them to lose considerable amounts. Is there a way to resolve this issue?
This growing concern from Yi He highlights a broader issue: the escalation of cryptocurrency scams on X, with experts estimating that scammers operating on this platform account for a significant portion of all cryptocurrency-related scams.
Scam Sniffer, a Web3 anti-scam organization, conducted a study revealing that impersonation scams on X.com result in monthly losses totaling nearly $50 million for users. Even before Elon Musk's involvement, these scams existed, but the ambiguity surrounding the new owner's paid verification service may have further exposed users to such impersonation schemes.
Thanks to the paid verification feature, practically anyone with a smartphone can get verified, which could blur the lines between authentic and fake accounts. While Musk has stated intentions to tackle issues related to 'bots' and 'spam' on the platform, it remains uncertain if specific actions will target cryptocurrency fraud. Currently, Musk has yet to respond to Yi He’s post on X.
The Threat of Cryptocurrency Phishing on Social Media
Impersonation scams on social media platforms such as X manifest in numerous forms but typically aim to mislead users into believing they are interacting with legitimate businesses or individuals. A common tactic among crypto fraudsters is creating fake accounts that mirror the branding and usernames of established cryptocurrency companies, popular influencers, or notable projects.
Victims of scams can face severe consequences, including significant financial losses or compromised digital identities. Moreover, the increasing frequency of these scams could undermine public trust in the cryptocurrency ecosystem.
Recent High-Profile Account Hacks
The scenario has become even more troubling with the recent hacks of prominent X accounts belonging to well-known businesses and cryptocurrency figures, starting in early 2024. For instance, after the US SEC's X account was hacked in January, a false announcement regarding the approval of Bitcoin ETFs was disseminated.
The X safety team reported that this hack resulted from a SIM-swapping incident associated with an official phone number tied to the @SECGov account. Additionally, scammers targeted the accounts of Hyundai MEA and Netgear, spreading schemes designed to infect potential victims with malware known to drain wallets.
In addition, a phishing attempt on In January, CoinGecko also experienced a security breach, during which their X account temporarily displayed a phishing scam link disguised as a CoinGecko token airdrop.
The hackers promoted a new cryptocurrency called GCKO, purportedly usable for ANKR-like API services. However, this claim was quickly discredited, and users were warned about potential financial losses if they engaged with the scheme.
Additionally, there are All primary UK airlines' X accounts, such as Virgin Atlantic, British Airways, easyJet, Jet2, Ryanair, Tui, and Wizz Air, have imitated accounts. Customers are often prompted to share sensitive data with scammers or redirected to phishing sites aiming to capture credit card details. Airlines are advising customers to avoid sharing personal information on social media and to stay vigilant against fraudulent accounts. They're also encouraging travelers to follow and interact with their official feed, @easyJet, for the latest updates or assistance.
While Elon Musk has committed to reducing spam and bots on the platform, hackers continue to find innovative ways to exploit X for their malicious activities. Multiple reports indicate that scammers are increasingly utilizing X advertisements to promote fake sites, leading to fraudulent airdrops, crypto drainers, and other scams.
Malicious Crypto Ads on X
In a recent instance, a verified X account shared a link to a legitimate article from Forbes, but
visiting that link redirected users to a Telegram group promoting a cryptocurrency scam. X has faced criticism for its insufficient link preview features, which scammers have exploited, allowing automated accounts and bots to bypass the 'crypto link' and lead real users directly to the fraudulent site. .
Recognize the Scam: Safeguard Yourself Against Binance Imposter Scams:
The Path Ahead for Combating Cryptocurrency Scams on X
Primarily, X must prioritize establishing robust security protocols and content moderation policies to identify and eliminate phishing links, malicious ads, and counterfeit accounts. This effort could involve a combination of human moderators and machine learning tools to swiftly identify and address problematic behavior.
We're also contending with a situation where over 1,000 fake profiles have arisen using the Catcoin branding and logo, resulting in scams targeting numerous users. This issue needs immediate attention, as it's not only damaging the reputation of projects but also leads to…
Thank you for your proactive stance. You're absolutely right — it can greatly speed up the resolution process. ^LK
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In line with the Trust Project guidelines Victoria is a writer covering a range of technology topics, including Web3.0, AI, and cryptocurrencies. Her extensive background enables her to craft insightful articles for a broader audience.
