Cryptocurrency Scams Surge Using Deepfakes, Fake Wallets

Investors are being warned about a new type of cryptocurrency scam that disguises itself as a cold wallet. The scam involves malicious actors impersonating official institutions and posting on social media platforms, claiming to offer free giveaways of popular hardware wallets like Ledger. These posts are designed to appear legitimate, with scammers even sending physical devices that look new and sealed to enhance credibility. However, the real danger lies in the device itself or the accompanying "startup guide." These wallets could have been tampered with in advance, or users could be tricked into sharing their recovery phrases through social engineering methods.

This type of scam can lead users to suffer huge losses, putting millions of dollars worth of assets at risk. Experts advise that wallets should only be purchased from official sources and that third-party software should not be allowed during the installation process.

Another emerging scam involves the use of deepfake videos featuring celebrities to lure victims into depositing Bitcoin on a fake trading platform. Known as the GROXCOIN Bitcoin Promo Code Scam, this fraud uses convincing videos of figures like Cristiano Ronaldo, Elon Musk, Bill Gates, Mark Zuckerberg, and Drake, who appear to endorse a Bitcoin giveaway. These videos direct viewers to a fraudulent website, GROXCOIN.com, where they are instructed to enter a promo code to receive free Bitcoin.

The scam operates by initially showing victims a balance of around 0.31 BTC in their GROXCOIN dashboard after entering the promo code. However, when they attempt to withdraw the funds, they are informed that they must make a minimum deposit of 0.005 BTC to activate withdrawal capabilities. This requirement tricks victims into sending real Bitcoin, which the scammers immediately steal. Once enough deposits are collected, the site disappears, and victims have no way to recover their money.

The scammers behind GROXCOIN.com use advanced deepfake technology, psychological manipulation, and technical subterfuge to perpetrate the fraud. They employ AI algorithms to create deepfakes that seamlessly replace the celebrities' faces and voices, making the videos appear genuine. Additionally, they use voice dubbing to make it seem as though the celebrities are endorsing the giveaway. The videos are then distributed through paid ads and hashtag campaigns on various social media platforms.

This scam is part of a broader trend of cryptocurrency frauds that exploit celebrity publicity. Scammers frequently impersonate well-known figures to lend credibility to their deceptive schemes. The use of deepfake technology has made these scams increasingly convincing, making it difficult for victims to discern the fraud. The scammers maintain a library of video templates and site designs, allowing them to quickly shift to new domains and continue their operations even as authorities shut down their previous sites.

To protect against such scams, it is crucial to verify celebrity endorsements through official channels and thoroughly research any trading platform mentioned in promotional videos. Legitimate platforms do not require users to make deposits solely to enable withdrawals, and genuine giveaways or bonuses are rare. It is also important to report suspicious activity to authorities and help bring scammers to justice. By staying alert and informed, individuals can avoid falling victim to these deceptive tactics and protect their cryptocurrency investments.