South Korean Crypto Community Falls Victim to Ethereum-themed Scam

South Korean Crypto Community Targeted by Ethereum-Themed Scam


By Tim Alper
Updated on:
May 21, 2024 23:00 EDT
|
Read Time: 2 min


On May 21, South Korean crypto users reported being targeted by fraudsters with an Ethereum-themed scam, according to local sources.
Asia Time, a South Korean media outlet, reported that scammers are sending alarming text messages to smartphone users, threatening to “burn” their ETH coins on May 22 if immediate action is not taken.
The rise in this scam comes as both police and regulators have noted an increase in “cybercrime relating to virtual assets.”
Members of the crypto community have taken to online platforms to warn fellow token holders about the circulating “phishing text message.” One post stated:
Some individuals cautioned that scammers are using technology that allows their messages to bypass spam filters.
Several of the text messages claim to originate from a “global cryptocurrency exchange” called Bit-Finance.
The messages warn that due to token holders’ “long-term inactivity,” their Ethereum holdings will be burned on May 22.


Ethereum vs the USD over the past five days. (Source: TradingView)
The text instructs crypto holders to “make withdrawals as soon as possible” in order to avoid losing their funds.
Recipients are prompted to click on a link that provides information on the process and how to secure their funds.
A community member shared a screenshot showing that the senders claimed that a total of 54.5 ETH of their funds would be burned if no action was taken.
The enclosed link appears to direct smartphone users to a phishing site where scammers attempt to trick individuals into providing wallet details and passwords.
The media outlet also highlighted the increase in “cyber fraud using real virtual assets” in South Korea.
Last year, the National Police Agency reported dealing with 167,688 cyber fraud cases, a 7.68% increase from 2022.
“Crimes using virtual assets” accounted for 38.3% of the total cases in 2023, according to the police agency.
Citizens have filed a total of 2,209 reports to the regulatory Financial Supervisory Service between January and April this year, claiming financial losses due to crypto scammers.
The regulator stated that 17.7% of these cases are related to phishing attacks and has previously described crypto-themed phishing as “rampant” in South Korea.
The police have vowed to “fight back” against these attacks, considering them opportunistic moves from scammers taking advantage of the buoyant crypto markets.
In recent months, South Korean markets have experienced a surge in transaction volumes due to exchanges offering commission-free crypto trading.
Experts believe that this increase in transaction volumes has led to a rise in phishing attacks.
An official from the Cyber Investigation Unit at the National Police Agency revealed that crypto criminals are increasingly using “daepo phones.”
These phones are created using stolen name and social security number credentials. The official stated:
Last month, South Korean media outlets reported that phishing attackers are now targeting credit card users and victims of crypto scams.
Typically, these attackers try to lure victims onto fake crypto exchanges and wallet platforms.
Follow Us on Google News