FBI Warns of Phishing Scams and Social Media Account Hijackers

The Federal Bureau of Investigation (FBI) has issued a public service announcement on August 4, 2023, alerting the nonfungible token (NFT) and crypto community about the increasing threat of phishing scams and social media account hijacking. According to the FBI, criminal actors are posing as legitimate NFT developers and influencers to lure victims into fraudulent schemes that result in the loss of their funds or assets.

How the Scams Work

The FBI explained that the scammers either gain direct access to NFT developer social media accounts or create almost identical accounts to promote new NFT releases. They often use phrases like “limited supply” and “surprise” to create a sense of urgency and entice potential buyers to click on phishing links.

These links direct victims to spoofed websites that appear to be legitimate extensions of a particular NFT project. The websites then prompt victims to connect their wallets to claim or purchase NFTs, but instead, they are connected to a drainer smart contract that transfers their funds or assets to the scammers.

The FBI also warned that some spoofed websites may have hidden MetaMask wallet signature links that can be accidentally clicked by victims, allowing the scammers to access their wallets without their consent. Additionally, some spoofed websites may contain malware that can infect the victims’ devices and compromise their security.

How to Protect Yourself

The FBI advised the NFT and crypto community to take the following precautions to avoid falling victim to phishing scams and social media account hijacking:

• Verify the authenticity of the social media accounts and websites of NFT developers and influencers before engaging with them. Look for signs of spoofing, such as misspellings, unusual characters, or different domain extensions.
• Do not click on links or attachments from unsolicited or suspicious sources. Instead, type the URL directly into your browser or use a bookmarked link.
• Use a reputable antivirus software and keep it updated. Scan your device regularly for malware and remove any suspicious applications.
• Use a hardware wallet or a cold storage device to store your funds or assets offline. Do not share your private keys, recovery phrases, or passwords with anyone.
• Enable multi-factor authentication and use strong passwords for your online accounts. Change your passwords regularly and do not use the same password for multiple accounts.
• Report any suspicious or fraudulent activity to the FBI’s Internet Crime Complaint Center (IC3) at [www.ic3.gov]. Provide as much information as possible, such as screenshots, URLs, email addresses, wallet addresses, transaction IDs, and any other relevant details.

Why It Matters

Phishing scams and social media account hijacking are not new phenomena in the online world, but they have become more prevalent and sophisticated in the NFT and crypto space due to the high demand and value of these digital assets. According to a report by CipherTrace, a blockchain analytics firm, crypto-related fraud and theft amounted to $4.5 billion in 2020, an increase of 38% from 2019.

The FBI’s warning is a timely reminder for the NFT and crypto community to be vigilant and cautious when dealing with online platforms and transactions. By following the best practices and reporting any suspicious activity, we can help prevent these scams from harming ourselves and others.

I hope you found this article informative and helpful. If you did, please share it with your friends and family who are interested in NFTs and crypto. Also, feel free to leave a comment below with your thoughts or questions on this topic. I would love to hear from you!

Sources:

• (1) FBI warns of phishing scams and social media account hijackers | Cointelegraph.
• (2) FBI warns of phishing scams and social media account hijackers | Investing.com.
• (3) FBI warns of phishing scams and social media account hijackers | TradingView.

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