Russia’s Kaspersky Warns Of YouTube Crypto Seed Phrase Scams

Scamming cryptocurrency users into a trap that sends them to a multi-signature wallet, these scammers have recently posted seed phrases in YouTube comments. A Russia-based cybersecurity firm, Kaspersky, uncovered the scam in a blog post issued on December 23, which continues to highlight how fraudsters are becoming more sophisticated in the crypto space.

Scams in action start with scammers who pretend to be crypto newbies posting comments under videos about finance on YouTube. Because these comments often include seed phrases, unique sequences of words required to access a cryptocurrency wallet, and pleas for help transferring funds, this assistance remains a common request. The idea is to tempt people to steal the wallet, only to get what they want.

In addition, according to Kaspersky analysts, it was unclear who created the accounts, as they appeared to be new ones. However, they appear to contain large amounts of Tether (USDT), making up the wallets shared in the scam. The scam works because these funds must be removed, and fees are charged in TRON.

https://twitter.com/cz_binance/status/1870843145971458058?ref_src=twsrc%5Etfw

Multi-Sig Wallets Trap Thieves In Crypto Scam

Multiple wallets are designed on multi-sig security, where several parties must approve transactions. Without further approvals, a payment to the TRON fees to access the funds can’t go through. This clever setup traps would-be thieves out of pocket and with the money they would have stolen.

“Unfortunately, the wallet doesn’t have enough TRX, so the thief tries to transfer TRX from their own personal wallet — only to discover that the tokens they transferred immediately ended up in a completely different, third wallet.”

Kaspersky

Binance founder Changpeng Zhao said in a post to X (Twitter), receiving cryptocurrency through private keys or hardware wallets was a “bad idea.” “In several instances, we point to similar scams where people lost their funds,” he said.

Kaspersky also advised its crypto users on safety while reminding them of the importance of protecting seed phrases. “The scam shows how scammers can get to the people who are trying to exploit the holes created.” The firm advised that you always protect your seed phrases and watch out for such schemes.

This comes as Kaspersky comes in for ongoing scrutiny. In June, Biden put sanctions on 12 senior Kaspersky Lab leaders for cybersecurity risks. At the same time, it announced plans to ban the sale of Kaspersky’s antivirus software in the U.S., the announcement came.

Scammers seeking to exploit the growth of cryptocurrency adoption have continued to get craftier. Kaspersky’s revelations remind crypto users to stay on guard, keep their cold wallets safe, and avoid engaging with suspicious schemes. This latest scam is very sophisticated and a stark reminder for the crypto community to be more conscious.