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European police have dismantled a crypto fraud network and seized more than a million dollars in cryptocurrency and 50,000 euros in cash.
Recently, the fraudsters' favorite trick has been to attract innocent citizens by providing lucrative investment opportunities through cryptocurrency. Social media has made it easier for businesses and fraudsters to expand into different countries.
According to a press release, Eurojust and Europol, the European Union Agencies, collaborated to dismantle the crypto fraud network operating from Bulgaria, Cyprus, and Serbia.
15 individuals detained for crypto fraud in Europe.
European agencies have arrested 15 individuals to date for managing a crypto fraud network that has defrauded citizens of Germany, Switzerland, Austria, Australia and Canada by over €10 million.
Previously, scammers operated in 4 call centres. European agencies have identified more than 250 places of work and searched 18 sites. During these raids, they seized three cars, two luxury flats, 1 million dollars in cryptocurrencies, and more than 50,000 euros in cash.
The press release reads as follows: The network has attracted potential investors online and has frequently contacted victims by telephone to encourage them to make small investments, in English and German. After the first earnings, the victims invested more money and later lost it."
Fraudsters use AI for malicious purposes.
AI has hit the Internet in the last few months. But with great instances of use always comes a greater chance of the technology used by fraudsters.
People might identify a scam when they receive direct calls or messages from someone they don't know about. And if they receive a video message from famous people?
Fraudsters create manipulative videos of well-known personalities using AI. This material is referred to as deepfake. A video of Sam Bankman-Fried directing viewers to a fake website by luring them with giveaways was popular in November when the firm filed for bankruptcy
Over the weekend, a verified account posing as FTX founder SBF posted dozens of copies of this deepfake video offering FTX users "compensation for the loss" in a phishing scam designed to drain their crypto wallets pic.twitter.com/3KoAPRJsya
— Jason Koebler (@jason_koebler) November 21, 2022
The community must raise awareness, so that people will not fall for these . It is critical not to click on links received on foreign social media dms. Also, every time a deepfake video is in circulation, users must perform check tests before acting.
To combat crypto fraud, crime departments and agencies should be well equipped in terms of blockchain and other technologies needed. UK National Crime Agency has announced a special crypto unit to deal with crypto crimes.
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