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Top cryptocurrency news: Silicon Valley Tech Worker Loses Over $1M to Crypto Scam

20-Aug-2022 By: Shailja Joshi
Top cryptocurrency n

A new cryptocurrency scam involving millions of dollars in losses 

Has been discovered in the Bay Area of the United States, specifically targeting Silicon Valley investors.

According to a local media outlet in the region, the 'Pig Butchering' crypto scam affects the victim's phone through conversations on dating apps or social media platforms, with perpetrators creating a fictitious relationship while persuading the target to work in crypto.

Notably, scammers provide consumers with a link to what seems to be a reputable cryptocurrency trading software or platform. However, once the program is downloaded, the scammers have access to their victims' devices.

The scale of the scam is unknown at this time, but once the target's phone has been compromised, the malware may access the victim's data. At least two victims have been found, with a total loss of almost $2.5 million in life savings. Notably, one of the victims is a Silicon Valley tech employee.

Scammers researching victims

According to authorities, the scam has advanced to the point where perpetrators investigate their victims before striking, primarily targeting their mobile devices. Furthermore, investigators warn that the scam has appeared as counterfeit malicious applications that provide access to personal information.

“The applications are highly appealing, however, in some situations, they appear to be any other application. Some of the sites are designed to seem like the Apple Software Store, and they will even include ratings and claim to be an Apple authorized app with a high rating. According to US Secret Service Financial Analyst Andrew Frey, they are becoming more sophisticated.”

In certain cases, the fraudulent investment sites even provide customer support helplines. However, the victims wind up talking with the fraudsters directly.

Privacy invasion set to persist 

Investigators warned that even uninstalling the applications does not immediately repair the damages and that the privacy invasion may continue. Victims are encouraged to do a factory reset.

Users are also advised to avoid downloading software from links supplied over WhatsApp and text messages, instead focusing on legitimate channels such as the App Store and Google Play.

Overall, with the rise of cryptocurrency, scammers are preying on unwary investors. However, research suggests that revenue from crypto scams has dropped by around 65% in the last year, despite the current market correction.

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