Crypto Scammers Swipe $59 Million Using Deceptive Google and X Ads, Targeting 63,000 Victims: Report

In a staggering crypto scam, fraudsters have successfully executed a heist, making off with a whopping $58.98 million from around 63,210 unsuspecting victims over the past nine months. The intricate scheme involved the use of a crypto wallet-draining service named "MS Drainer," as disclosed in a recent report.

Blockchain security platform Scam Sniffer reported that scammers leveraged Google and X (formerly Twitter) ads to target victims, presenting fake versions of well-known crypto platforms such as Zapper, Lido, Stargate, DefiLlama, Orbiter Finance, and Radiant.

Wallet drainers, a type of blockchain technology, enable scammers to siphon off cryptocurrency from victims without their awareness, exploiting vulnerabilities in the token approval process. Initial identification of the MS Drainer occurred in March, with collaboration from the SlowMist security platform team. Subsequently, in June, on-chain investigator ZachXBT uncovered a phishing scam named "Ordinal Bubbles," directly linked to the MS Drainer.

Alarming concerns arose when friends inadvertently fell victim to phishing via counterfeit Radiant ads on Google. Investigation revealed nine deceptive Google search ads, with 60% utilizing the malicious MS Drainer program.

A comprehensive analysis discovered a total of 10,072 fraudulent sites utilizing the MS Drainer. The drainer's peak activity occurred in November before sharply declining in subsequent months.

Further scrutiny revealed an unconventional marketing strategy employed by the MS Drainer developer. Diverging from the norm, which involves taking a percentage of fraudulent gains, this developer opted for a fixed-rate approach, advertising the MS Drainer on forums at $1,499.99. For enhanced features, additional "modules" were available at prices ranging from $699.99 to $999.99.

"As users, we should exercise additional caution when encountering advertisements, maintain skepticism before committing to anything, and always verify the legitimacy of potential phishing attempts," advised the researchers. This serves as a stark reminder for users to stay vigilant and protect their crypto assets from evolving threats in the digital landscape.

Also Read: Bengaluru Ranks Second in Crypto Boom: India's Growing Interest in Digital Investments!