Silicon Valley Tech Loses Over $1M in Crypto Scam
A new cryptocurrency scam accounting for millions of dollars in losses has been discovered in the Bay Area, USA, targeting Silicon Valley investors.
The crypto scam called ‘Pig Slaughter’ infects the victim’s phone through interactions on dating apps or social media platforms with perpetrators building a fake relationship while soliciting the target for crypto workers. ABC7 News Bay Area reported on August 19.
Specifically, the scammers send victims a link to what appears to be a legitimate crypto trading app or platform. However, after downloading the application, the fraudsters gain access to the victims’ devices.
The extent of the scam is currently unknown, but once the target’s phone is infected, the malware can access the victim’s data. At least two victims have been identified, cumulatively losing about $2.5 million in life savings. One victim in particular is a tech worker in Silicon Valley.
Scammers researching victims
According to authorities, the scam is advanced with perpetrators researching their victims before striking, specifically targeting their mobile devices. Furthermore, investigators note that the scams have manifested as fake malicious apps that provide access to personal information.
“The apps are very compelling <...> in some cases they look like any other app. A very convincing scheme here <...> Some of the sites are meant to look like the Apple App Store and they will even have ratings and say it is an Apple approved app with a high rating. They are becoming more sophisticated, says financial analyst Andrew Frey of the US Secret Service.
In some cases, the fake investment platforms go as far as offering customer service helplines. However, the victims end up communicating directly with the scammers.
Privacy invasion set to persist
Investigators warned that even uninstalling the apps does not immediately fix the damage caused, stressing that the invasion of privacy could persist further. Victims are advised to perform a factory reset.
Users are also encouraged to avoid downloading apps from links sent via WhatsApp and text messages, but only focus on official platforms such as the App Store and Google Play.
Overall, with the growth of cryptocurrencies, fraudsters are taking advantage of unsuspecting investors. However, amid the recent market correction, data shows that revenue from crypto scams has fallen by about 65% in the past year.
