Following access to their data from a data leak, crypto scammers stole over a million British pounds ($1.2 million) from nine Kent, England residents.
Kent Police advised locals to be alert against ongoing cryptocurrency fraud attempts on March 1. Bad actors obtained the personal data of Kent residents and used it to create fictitious reports from the national reporting centre of the United Kingdom, Action Fraud.
“Personal information extracted from the data leak was used to create fictitious Action Fraud reports,” the cops said.
To reach possible victims, crypto scammers generated fictitious reports and then used them to pose as law enforcement. The victims were informed they were under investigation and the “crypto wallet host would be calling them.”
Creating fake police reports from leaked user data
Every victim said they got a second call from a “security officer” pressuring them to divulge their crypto wallet seed phrases. A seed phrase is a 12 or 24-word mix granting crypto wallet access.
The police alert said: “With that information, the fraudsters were able to rebuild the wallet, steal the funds and transfer them so that they can’t be recovered.”
Detective Sergeant Darryll Paulson appeals to Kent residents not to give out personal information over the phone to anyone who claims that they are from the police or a crypto host
“Scammers are getting smarter about how they trick people into losing a lot of money. They often make the situation seem urgent by telling the victim they need to act now to keep their funds from being stolen.”
Reducing data leak consequences
The nine victims lost overall more than $1.2 million to the fraud resulting from the data leak.
Paulson also advised other victims to document frauds without feeling ashamed since “it only takes a second to be distracted and fall victim.”
Sharing seed phrases with anyone is advised against by crypto investors as it will give them total access to funds and the ability to transfer or withdraw from it at will.
Targeted frauds that take advantage of security flaws follow the increasing acceptance of cryptocurrencies. Experts caution that similar fraud attempts are probably going to rise, thus users should pay great attention to security issues. Blockchain security companies counsel investors to turn on hardware wallets for long-term storage, enable multi-factor authentication and check every request before distributing private information.
To track fraudulent activity more effectively, authorities also advise local law enforcement and financial authorities of suspicious calls. Since cybercriminals now primarily target digital assets, increased awareness and preventative actions are essential to lower losses and safeguard user money.
