, 2022-05-19 12:44:00,
A NEW crypto scam preying on new investors has been tracked by a cybersecurity firm.
The scheme is called “liquidity mining” and the perpetrators use the complexity of crypto-trading as a shield for heists.
The cryptocurrency space is rife with scams and hacks.
The Washington Post reported that Americans lost an estimated $750million in crypto-scams in last year.
This monstrous amount is almost double the value taken in physical robberies, according to the FBI.
Crypto-scams are normally built on lies where physical robberies are thought of as confrontations – misled crypto-victims often turn over their funds voluntarily only to realize later they’ve been duped.
TechRadar wrote that for a decentralized currency to trade, “there needs to be a pool of liquidity”.
To create a pool of liquidity, legitimate cryptocurrency administrators will ask investors to lend some of their tokens to the pool in exchange for a small recurring bonus – this is achieved via a coded digital agreement called a “smart contract”.
Scammers are developing fake cryptocurrencies and falsifying records to make them appear as rising in value.
Then they target new investors to connect their digital wallet, sign a smart contract and make contributions to the liquidity pool – a pool which, of course, does not actually exist.
Reports show that some perpetrators recruited victims using the catfishing angle – an attractive woman sends an unsolicited direct message with a link to a moneymaking opportunity too good to be true.
A victim of a liquidity mining theft told the Global Anti-Scam Organization: “Activating the link will establish a smart contract with the scammer and the user may not know it.”
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