- A scammer impersonated UK police to embezzle bitcoin
- The victim typed in the seed phrase on a bogus site
- Holders of cold storage need to confirm unusual calls
A cryptocurrency owner became a victim of a complex phishing scheme that resulted in the loss of 2.8 million dollars worth of bitcoin. The criminal posed as a senior UK police officer. The case demonstrates a new threat to cold storage crypto holders all over the world.
The fraud took advantage of very specific social engineering. It entailed persuading the victim of a major security breach in their personal data.
How a phony police call resulted in a giant heist of bitcoins
North Wales Police have launched an investigation into this incredible theft that began with a call. The scammer stated that the phone of an arrested criminal contained the ID of the victim. This made-up story created fear and urgency.
The victim was advised to protect his crypto assets as soon as possible. A link to what looked like a genuine cold wallet log-in site was sent to them.
The victim typed in the seed phrase, thinking it was official police advice. This divulged their wallet keys to the scammers.
This allowed the fraudsters to reload the wallet and carry out the money. The cumulative amount received amounts to over 2.1 million British pounds, which is close to 2.8 million American dollars.
Cold Crypto Storage Holders Are the New Targets
Cold storage wallets are regarded as the most secure place to store cryptocurrencies. But recent hacks reveal that they are even vulnerable to being hacked when blackmailed by the social manipulation technique.
The scammers probably used previously leaked personal data as a result of a recent hack to target their targets. This sort of targeting makes it riskier. They exploit the trust and fear of the victims with plausible tales.
Police warn that no police officer will ever call and request seed phrasing or a personal key. This is the critical piece separating genuine law enforcement from con artists.
North Wales Police emphasized that:
“Police will never call to discuss crypto assets. Watch out for increasingly bizarre calls to act in a hurry.” The authorities urge one to hang up and check out such a contact. Always dial official police numbers, eg, 101 in the UK.
This case indicates the development of crypto fraud. Fraudsters have now integrated the use of sophisticated phishing websites with social engineering. They make use of technology and psychology to circumvent defenses.
