Kaspersky Labs Reports More Than $2 Million Lost to Crypto Scams in Q2 of 2018

MOSCOW, RUSSIA - OCTOBER 2, 2017: The headquarters of the Russian cybersecurity company Kaspersky Lab. Sergei Savostyanov/TASS (Photo by Sergei SavostyanovTASS via Getty Images)

Kaspersky Labs, the Russia-based antivirus and cybersecurity firm, reported that the second quarter of 2018, saw over $2.3 million dollars stolen by cybercriminals through crypto scams.

The Kaspersky Labs report was titled “Spam and phishing in Q2 2018,” stated that “crypto giveaways” were common place as a phishing scam, where the con artist would fool users into releasing personal data for a promotional give away of various cryptocurrency.
The hackers gained access to the private information by creating viral copies of popular crypto wallets and markets, which would con users into providing their information.

Kasperksy also commented that Initial Coin Offerings (ICOs) were used as scams where the cybercriminals would pose as a new ICO and garner funds from investors through a fake early access event.

The quarter report listed the multitude of scams, they also noted that Ethereum (ETH) is the most popular digital asset for phishers. This is due to the fact that more funds are invested in ICOs on the Ethereum platform.

In the beginning of August, cybersecurity firm Duo Security analyzed that over 88 million Twitter accounts by utilizing machine learning techniques to train a bot classifier in order to gain intel on ake crypto giveaways on the social platform.

By classifying the most recent 200 posts from each account, a network of over 15,000 bots were discovered, as they were spreading scam competitions and impersonating public figures in the crypto sector. Olabode Anise, one of the Duo data scientist stated:
“The bots’ attempts to thwart detection demonstrate the importance of analyzing an account holistically, including the metadata around the content.”