Gate.io users at risk as scammers fake Twitter giveaway

By: Mark Jessy

October 23, 2022 4:57 AM

The malicious website claims to be giving away half a million USDT and encourages visitors to link their cryptocurrency wallets (like MetaMask) in order to collect their prizes.

Over a million users of the cryptocurrency exchange Gate.io had their funds compromised when hackers took over the company's official Twitter account and began a fraudulent Tether (USDT) giveaway.

Among all social media, Twitter is the best way to reach the crypto community. This has led to an increase in the practice of impersonating legitimate businesses by using their verified Twitter accounts to spread scams.

Unknown hackers compromised the Gate.io Twitter account and redirected users to a fake version of the exchange's website, gte.com.

The malicious website claims to be giving away half a million USDT and encourages visitors to connect their wallets (like MetaMask) in order to receive their prizes. As soon as a user links their wallet to the fraudulent website, the cybercriminals will have access to their funds and will eventually drain the accounts.

Peckshield, a blockchain investigation firm, also verified the ongoing attack after it identified the phishing website and warned users their private keys were at risk.

Investors are urged to verify the legitimacy of the trading platforms by comparing the URLs of the sites they use to buy and sell cryptocurrencies at a time when crypto scams are expected to reach record highs.

The United States Federal Bureau of Investigation (FBI) issued a warning about scammers using crypto ATMs to steal money from unsuspecting customers.

The FBI reports that con artists are using crypto ATMs, prepaid cards, and wire transfers to evade capture.

"Many victims have reported being told to send money via wire transfer to foreign accounts or to buy substantial quantities of prepaid cards. The use of digital currencies and automated teller machine exchanges for those currencies is another form of payment that is gaining popularity. Individual victims of these scams suffered losses anywhere from the tens of thousands to the millions."

Scammers ask victims to pay taxes on top of the initial demand for payment, "causing them (investors) to lose additional funds."