Ahad Shams, the co-founder of startup Webaverse, recently reported that $4 million was stolen from his cryptocurrency account during a face-to-face meeting with an attacker. Shams stated that the scammers convinced him to transfer the funds to a new Trust Wallet, which he created using his personal device and home Wi-Fi network. The attackers convinced Shams to prove that he had the money, and he transferred the $4 million USD Coin to the attacker’s wallet. The attacker quickly disappeared, and the funds were stolen. Shams stated that he had no idea how the attackers were able to steal the money.
Unfortunately, this is not the first case of such a fraud. In 2021, NFT entrepreneur Jacob Riglin reported that $90,000 in cryptocurrency was stolen from him using a similar scheme. The attacker convinced Riglin to open a new cryptocurrency wallet, transfer the currency there, and show potential investors. By the end of the meeting, there was no money left in the account. Apparently, the device from which the cryptocurrency was transferred was infected with a virus that spoofed the wallet address. As a rule, Android devices are infected.
These cases serve as a warning for cryptocurrency users to be vigilant and not to trust anyone easily. Experts advise users not to create wallets on personal devices and networks, not to trust strangers, and to use hardware wallets that require a physical button press for transactions. This way, attackers won’t be able to steal your cryptocurrency without your knowledge or consent.
The cryptocurrency market is growing, and with its growth, the number of scams and frauds is also increasing. Users must take appropriate precautions to ensure the safety of their digital assets. While face-to-face meetings can seem like an excellent way to establish trust, they can also be an opportunity for attackers to steal your money. It is best to be cautious and only trust people or services that have established credibility and reputation in the cryptocurrency community.