Crypto Scammers Exploit BRICS Hype, Target Investors
Analysts have identified a worrying trend in the increase of cryptocurrency fraud, particularly among Fortune 100 companies.
According to a report released today by researchers at Resecurity, fraudsters are creating counterfeit tokens in the name of well-known corporate brands and even governmental bodies.
In the rapidly expanding realm of decentralized finance and the crypto industry, where exponential growth is observed, scammers are leveraging investor interest for their deceptive schemes.
Resecurity specifically highlights a counterfeit token named “BRICS,” which continues to circulate. Criminals have capitalized on the hype surrounding the BRICS international organization, which unites the five largest emerging economies: Brazil, Russia, India, China, and South Africa.
Established in 2006, the BRICS forum is aimed at broadening cooperation among member countries on economic, political, and social issues.
Malefactors exploited geopolitical sentiments, disseminating disinformation about new countries joining the alliance and even proposing an initiative for a gold-backed currency. Utilizing the organization’s image, the fraudsters conducted an initial coin offering (ICO) to promote the fake token with various incentives.
Platforms like Lobstr.co, facilitating token creation on the Stellar network, have become hotspots for such scams due to their flexibility, according to Resecurity.
These criminal schemes often involve organizations such as the Monetary Authority of Singapore and central banks from the Middle East.
Data from Solidus Labs suggests that the scale of such scams has surpassed even the fallout from high-profile scandals like the collapse of FTX, Celsius, and Voyager, with the number of affected investors estimated at over 2 million. Experts point out two most common fraud schemes: modifying smart contract codes to steal currency, and exit scams — where project creators vanish along with investors’ funds.
The simplicity of these schemes, against the backdrop of low barriers to entry into the crypto industry, poses significant challenges. Resecurity calls for heightened vigilance and the introduction of stringent regulatory measures to combat fraudsters.
