Coinbase scammer claims earning 5 figures a week targeting crypto CEOs

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As a seasoned researcher with a keen interest in the intricate world of cryptocurrencies, I find myself continually amazed and appalled by the audacious activities of these crypto phishing scammers. Having spent years delving into the depths of blockchain technology, it is disheartening to witness how some individuals are exploiting this innovative space for illicit gains.

It seems that fraudsters who specialize in crypto phishing schemes are reportedly making significant weekly earnings, often reaching five figures, by posing as representatives from Coinbase’s customer service. These scammers have been found to exploit leaked data to focus their attacks on high-level executives and software engineers within the cryptocurrency industry.

Nick Neuman, CEO and co-founder of Casa, a company specializing in self-custody solutions for Bitcoin, revealed that he recently had an interaction with what turned out to be a Coinbase support scammer. During this conversation, after deciding to flip the script and question him about his role as a scammer, he discovered more than he initially intended.

The scammer casually mentioned that they earn at least six-digit figures weekly, they surpassed $35,000 just two days ago, and they engage in this activity for a specific purpose; there’s potential profit involved.

On November 20, Neuman shared a video on X where he posted the discussion he had with a fraudster who organized an attack. The fraudster claimed that a password change request was canceled and a message about it was sent. However, this “message” actually contained a harmful link. Curious to know who falls for such phishing scams, Neuman inquired about the types of people who get tricked by these attacks.

Lately, I received a call purportedly from Coinbase customer service, attempting to swindle bitcoin.

— Nick Neuman (@Nneuman) November 20, 2024

It might shock you to learn that individuals similar to yourself, who hold the position of CEO at Casa, are not only executives but also software engineers. This was stated prior to him mentioning that our team targets CEOs and CFOs.

“We don’t call poor people, the data we have is from a database where the minimum you have to have is $50,000,”

The scammer added that “money or education isn’t a determining factor,” claiming that they get details of their high-roller targets from Bitcoin financial services company Unchained Capital.

“We have the Unchained database and we assume that if you’re into crypto you’ll have a Coinbase account, so that’s how we run it.”  

The con artist additionally disclosed that they employ an “automatic information gatherer” to uncover additional details about their victims prior to initiating phishing attempts, and have the ability to forge emails to give the impression they came from Coinbase.

The scammer explained that their ultimate objective wasn’t to steal the victim’s password, but rather to persuade them into transferring money to a wallet that they themselves manage.

He said they have used Tornado Cash to launder the stolen crypto since they’re not based in the United States and sometimes exchange it for privacy coin Monero (XMR). 

“After you hold it in XMR for a couple of days, that bitch is gone, you’re not seeing the funds again.” 

When questioned about switching to fiat currency, he mentioned that they don’t utilize KYC exchanges and instead opt for hardware wallets like Ledger, which has been a target of phishing attacks ever since its database was breached in 2020. Later, they employ intermediaries to withdraw funds.

The scammer said that accessing company databases was easy and crypto was like the “Wild Wild West.” “If you lose $30-$40,000 in ETH or BTC, who are you going to call? The crypto police?” he said, adding he’s now trying to hit $100,000 per month from the scam. 

More than $127 million was stolen in Q3, 2024 due to crypto phishing attacks, according to Web3 security firm Scam Sniffer. 

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2024-11-21 08:49