Crypto Scammers Get Scammed Through New Seed Phrase Trick
White-hat hackers are reportedly utilizing a new trick nowadays where they fool unsuspecting crypto thieves and scammers by sharing certain seed phrases to online wallets.
Caught In The Act
Mikhail Sytnik, an analyst at cybersecurity firm Kaspersky, stated in a recent blog post that he found numerous comments in finance-related videos on YouTube and other platforms where users asked about transferring Tether (USDT) between wallets, alongside a shared seed phrase.
The wallet with the shared seed phrase, as observed by Sytnik, contained around $8,000 worth of USDT on the Tron network, which was used as bait. To take the USDT, the would-be thief first needed to send a small amount of TRX to cover network fees.
However, once the thief sends TRX to the bait wallet, the TRX is immediately transferred to another wallet controlled by the white-hat hackers. This is because the bait wallet is set up as a multisignature wallet, requiring multiple approvals for any outgoing transactions.
Scams On The Rise
Sytnik described the scammers as being like digital Robin Hoods since the scheme mainly targets other dishonest individuals. He warned users never to attempt to access crypto wallets belonging to someone else, even if they are given the seed phrase, and to remain cautious of strangers online claiming to have crypto offers.
In July, Kaspersky revealed a more advanced scam aimed at greedy individuals. This scheme involved baiting victims on Telegram with links to legitimate crypto exchanges and disguising traps as exposed files that could be exploited. The goal was to install malware on various computers in order to steal sensitive data and assets.
Top News
7 days ago
8 days ago
More From The News
Press Releases
Payments
New Payment Limit For Crypto Wallets Scrapped
The recent Anti-Money Laundering re... Read more
Bitcoin
Bitcoin Undergoes Price Correction As International Economies
A significant portion of the crypto... Read more
Join Our Newsletter
Get the latest trends and updates on our crypto community.