Token Scammers Breach Blockchain Capital’s X Account

Venture capital firm Blockchain Capital, fell victim to a sophisticated phishing scam after its social media account on X, previously known as Twitter, was hijacked.

The perpetrators posted a series of fraudulent messages on August 9, promising a giveaway of “BCAP” tokens. They provided a link to a fake website closely resembling Blockchain Capital’s original site, intending to deceive users into linking their cryptocurrency wallets.

The fraudulent website had a minor alteration in its URL, adding an extra ‘n’, a detail easily missed by unsuspecting users. The scam strategy also involved a sense of urgency by stating the giveaway would only be available for a day, aiming to exploit the fear of missing out. Notably, to prevent potential exposure, the comments section was deactivated, inhibiting users from flagging the scam.

Prompt action from informed members of the blockchain community led to the swift identification of the deceit. Blockchain Capital reestablished control over its account within hours, removing the misleading posts.

This cyber intrusion follows a broader pattern of scams in the crypto space, as highlighted by the Federal Bureau of Investigation (FBI) recently. The agency issued a warning about the increasing instances of criminals posing as non-fungible token (NFT) developers. These fraudsters hack into high-profile social media accounts, falsely advertising new NFT releases. Victims are directed to counterfeit websites where, once their crypto wallets are linmked, funds are syphoned using malicious smart contracts.

According to the FBI, stolen tokens are then laundered through multiple cryptocurrency mixers and exchanges, obfuscating their tracks.

The Blockchain Capital breach echoes a similar incident from April involving the crypto exchange platform, KuCoin. Its social media account was compromised, leading to a fake giveaway scam resulting in a loss of over $22.6K in cryptocurrency. In response, KuCoin assured full compensation to the impacted customers and emphasized the continued security of assets on its platform.

Changpeng “CZ” Zhao, CEO of Binance, a global cryptocurrency exchange, recently warned of the uptick in such phishing attacks and advised the community against using text message-based two-factor authentication. Instead, he recommended more secure methods like hardware devices.

With the frequency and sophistication of these cyber-attacks on the rise, stakeholders within the cryptocurrency domain remain on high alert, reinforcing the necessity for enhanced digital security measures.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.