Posting seed phrases in YouTube’s comment areas, cybercriminals are targeting crypto aficionados and luring victims into a deftly created multi-signature wallet fraud.
Russian antivirus company Kaspersky exposed this misleading technique in a blog post dated December 23 following a suspicious comment on a financial YouTube video. Said supposedly to be a novice, the comment included a seed word and asked for assistance with fund transfer. Experts recognised it right away as a possible fraud, and more research turned up similar postings from recently established accounts.
Kaspersky claims that the fraud uses persuading people into access to a Tether (USDT) cryptocurrency wallet. But withdrawing the money calls for TRON for transaction fees, an obstacle victims usually try to get around. The multi-signature system of the wallet guarantees the money stays unreachable since any transaction requires authorisation from several parties. This complex arrangement fools victims into waste of their own resources.
Emphasising the risks in a post on X (previously Twitter), Binance CEO Changpeng Zhao underlined the perils of acquiring cryptocurrencies using private keys or hardware wallets. Citing other such frauds, he cautioned against such behaviour.
A vital part of crypto wallets, a seed phrase gives complete fund access. Public sharing of it exposes users to theft. Kaspersky underlined the need of awareness and advised consumers not to share their seed words and to keep cautious of frauds passing for requests for assistance.
This episode reminds us of the always changing strategies used by crypto-based fraudsters. Kaspersky also pointed out its own difficulties because the Biden government approved twelve top executives of the company in June under reference to cybersecurity concerns related to the Russian corporation.
