Scammers Pose as Cops, Drain £2.1M in Crypto in Minutes

Binance CEO Changpeng “CZ” Zhao has issued a stern warning to cryptocurrency users, emphasizing the growing sophistication of scams targeting digital asset holders. In a recent statement, Zhao highlighted the increasing prevalence of social engineering tactics and phishing schemes, where attackers exploit human trust and urgency to gain access to sensitive account information. These threats have evolved to include impersonation of law enforcement, financial institutions, and even government officials, with victims often lured into entering their passwords or seed phrases on fraudulent websites [7].

The latest case of concern involves a UK-based individual who lost £2.1 million in Bitcoin after being deceived by a scammer posing as a senior UK police officer. According to North Wales Police, the victim was contacted with a fabricated story about a security breach and the arrest of an individual who supposedly had their personal identification documents. The scammer used this narrative to generate a sense of urgency, prompting the victim to click on a fake website link and enter their password. Once accessed, the scammer quickly reconstructed the victim’s wallet and drained the funds within moments [7]. The incident is being treated as part of a broader trend where scammers are using advanced social engineering techniques to target individuals identified through data breaches [7].

A similar warning was issued by the Federal Trade Commission (FTC), which reported a new cryptocurrency payment scam involving impersonation and QR code-based transfers. Scammers contact victims under various pretexts—such as fake government alerts, lottery wins, or urgent utility bill demands—and guide them to cryptocurrency ATMs. During the call, they provide a QR code containing the scammer’s wallet address and direct the victim to scan it after purchasing cryptocurrency. The FTC stressed that no legitimate authority or organization would ever request payment in cryptocurrency, particularly in the form of a QR code or through a phone call [6].

In light of these incidents, both the FTC and law enforcement agencies have urged users to remain cautious and vigilant. The key precautions include never sharing passwords or seed phrases, refraining from clicking on unsolicited links, and confirming the legitimacy of any unexpected contact by hanging up and calling official numbers directly. Additionally, the police have emphasized that law enforcement agencies will never ask individuals to use cold storage devices or provide access to their crypto wallets [7].

The rise in sophistication of these scams underscores the need for user education and proactive measures to secure digital assets. Binance CEO CZ reiterated the importance of multi-factor authentication, cold storage solutions, and constant awareness of emerging fraud tactics. As the crypto ecosystem continues to expand, the threat landscape is evolving rapidly, and users must adapt their security practices accordingly [7].

Source: [7] Police issue warning after £2.1m Bitcoin 'scam' (https://www.bbc.com/news/articles/c1kzg1nwwk1o) [6] New crypto payment scam alert (https://consumer.ftc.gov/new-crypto-payment-scam-alert)