South Korean Crypto Community Targeted by Ethereum-Themed Scam
Scammers in South Korea are focusing their efforts on crypto users with a fraudulent Ethereum-themed scheme, according to reports from token holders in the country on May 21.
Asia Time, a South Korean media outlet, revealed that scammers are sending alarming text messages to smartphone users, warning them that their ETH coins will be “burned” on May 22 if they don’t take immediate action.
The rise in this type of scam comes as authorities and regulators report an increase in cybercrime related to virtual assets. Concerned members of the crypto community have taken to online platforms to warn fellow token holders about a circulating “phishing text message.” Some have even noted that scammers are using technology to bypass spam filters.
The text messages claim to originate from a global cryptocurrency exchange called Bit-Finance. They warn token holders that, due to their long-term inactivity, their Ethereum holdings will be burned on May 22. The recipients are urged to make withdrawals as soon as possible to prevent losing their funds.
Upon clicking on the provided link, recipients are directed to a phishing site where scammers attempt to obtain wallet details and passwords.
South Korea has seen a significant increase in cyber fraud cases involving virtual assets. In 2023, the National Police Agency reported dealing with 167,688 such cases, a 7.68% increase from the previous year. Crimes using virtual assets accounted for 38.3% of the total.
The Financial Supervisory Service has received 2,209 reports of financial losses caused by crypto scammers from January to April of this year. Of these cases, 17.7% were related to phishing attacks. The regulator has previously described crypto-themed phishing as rampant in South Korea.
Police experts believe that the surge in attacks is opportunistic, taking advantage of the buoyant crypto markets. The introduction of commission-free crypto trading by many exchanges has also led to increased transaction volumes and subsequently more phishing attacks.
The Cyber Investigation Unit at the National Police Agency revealed that crypto criminals are increasingly using “daepo phones,” which are cell phone numbers created using stolen personal information. This tactic allows scammers to avoid detection.
Recent reports also indicate that phishing attackers are now specifically targeting credit card users and victims of crypto scams. These attackers often direct their victims to fake crypto exchanges and wallet platforms.
Authorities have vowed to combat these scams and protect the public from falling victim to fraudulent schemes.
