- Someone pretending to be the US President tried to cheat a streamer out of half a million
- The fraudster used a Kraken-hosted bitcoin wallet address, which allowed the exchange to identify him
US-based crypto exchange Kraken created a fake crypto account to identify suspicious wallets and lure in cybercriminals. In a contact center, an imposter pretending to be US President Joe Biden tried to cheat a streamer out of almost half a million in bitcoin, crypto.news reported.
The streamer, Kitboga, features shows focused on provoking con artists. He tweeted yesterday that Kraken had created a “tailored environment” for him to use in his most recent encounter with a cybercriminal, namely the one pretending to be the president. The two have crossed paths previously. Before the last encounter, they were in contact around a year ago.
How was he tricked?
In a video uploaded on YouTube, Kitboga used the fake Kraken cryptocurrency account to “store” around half a million dollars’ worth of bitcoin. Then, the scammer “watched” the streamer get the money. He had convinced the streamer to download remote computer screen-sharing software.
In the short video, Kitboga plays an old lady. He enters a wrong wallet address before transferring the amount to the scammer, preparing the comedic climax. The scammer gets really angry and starts hurling insults at Kitboga.
The fraudster used a Kraken-hosted bitcoin wallet address, which allowed the platform to monitor and eventually identify him.
Why did Kraken create a fake account?
Kraken created a fake account to lure in criminals due to the increasing number of crypto scams. The most common ones are still Ponzi schemes, phishing, pump and dump, rug pulls, and fake exchanges and wallets.
Scammers often lure investors by guaranteeing extraordinary profits through investments in crypto projects or trading strategies. However, the returns are usually paid out using funds from new investors rather than actual profits, eventually leading to the scheme's collapse.
Phishing scams target individuals through deceptive emails, messages, or websites that mimic legitimate crypto platforms or exchanges.
Pump and dump schemes involve artificially inflating the price of a low-value cryptocurrency through false or misleading information.
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