The Great Scammer Migration: How Bitcoin’s Allure is Pulling Cybercriminals from Smaller Blockchains
In Brief
Phishing organizations are leaving the TON ecosystem to focus on Bitcoin, indicating a shift in the cybercriminal scene. Reasons include the lack of “whales” and Bitcoin’s appeal to both legal and hacker users.
A well-known phishing organization that has been active in the TON (The Open Network) ecosystem has said that it will be leaving that field and focusing on the Bitcoin network instead. This transition provides insights into the present status of various blockchain ecosystems and signifies a significant change in the cybercriminal scene.
It appears that some malevolent organizations have lost interest in the TON ecosystem, which was once a promising frontier for fraudsters as well as honest users. The main justification given for this departure is the alleged dearth of “whales,” a term used in the cryptocurrency world to refer to people or organizations with substantial holdings of digital assets. This development highlights the continued allure of Bitcoin to both legal users and hackers while also raising concerns about the TON network’s long-term prospects.
An Overview of the TON Ecosystem
Telegram, the well-known messaging platform, was the original developer of The Open Network, or TON. Even after Telegram pulled out of the project due to legal issues, TON kept growing as a stand-alone blockchain. Through a number of efforts, such as airdrop campaigns and blockchain-based games like Notcoin and Hamster Kombat, it became popular. Through these efforts, a sizable user base was drawn in, and the number of daily active users increased significantly.
It seems that this user base’s makeup has been both a benefit and a drawback. Although TON had a surge in users, many of them were allegedly “airdrop farmers”—people who make small transactions only in order to be eligible for token distributions. This user behavior, together with contentious tokenomics, appears to have produced a climate that attracted fraudsters at first but turned out to be less profitable than expected.
Swindling Methods in the TON Ecosystem
Scammers used a variety of advanced strategies when operating within the TON network. Taking advantage of TON’s comment function was one noteworthy technique. Fraudsters would craft alluring but fraudulent transaction promises; they may guarantee substantial amounts like 5,000 USDT, for example. When consumers engaged with these fraudulent offers, they would unintentionally approve transactions that depleted their wallets.
There were instances of losses exceeding $150,000 in May alone, showing that this strategy was successful for a while. These frauds’ success serves as a reminder of how crucial user education and strong security are to any blockchain ecosystem. It also emphasizes how, if features intended to improve user experience are not created with strict security concerns, malevolent actors may use them as weapons.
The Reasons and Consequences of the Bitcoin Transition
This phishing group’s choice to change its focus to Bitcoin is instructive. The oldest and most well-known cryptocurrency, Bitcoin, still has a sizable user base with a lot of valuable wallets. The existence of these “whales” draws fraudsters interested in Bitcoin, who are looking to profit handsomely from their illegal actions.
The stability and maturity of the Bitcoin network are also reflected in this change. In the rapidly evolving world of cryptocurrencies, Bitcoin is still a mainstay of the digital asset market despite its age. Cybercriminals constantly attack it because of its ongoing popularity and the large amount of value it handles.
But pursuing Bitcoin is not without difficulties. When compared to other, more recent blockchain ecosystems, the Bitcoin community tends to be more security-conscious. Many Bitcoin users may be more resilient to phishing efforts since they have endured several cycles of fraud and assaults. Furthermore, over time, the Bitcoin community has created strong security procedures and resources that might provide serious challenges to potential fraudsters.
The Entire Framework of Cryptocurrency Fraud
This phishing group’s switch from TON to Bitcoin is a part of a wider pattern of cryptocurrency fraud. A troubling picture of the scope and complexity of these attacks is painted by recent statistics. Phishing assaults caused losses of almost $46.6 million for 10,800 victims in September alone. A single phishing transaction was able to steal nearly $32 million in cryptocurrency, which is even more concerning and highlights the potential for enormous losses from these assaults.
These numbers demonstrate the continuous difficulties the crypto sector has in protecting consumers and their investments. Scammers will have more motivation to target blockchain systems as the technology develops and gains traction among the general public. A consistent supply of prospective victims for sophisticated phishing operations is made possible by the ongoing entry of new, maybe less experienced users into the cryptocurrency arena.
Developing Scammer Methods
Scammers using cryptocurrencies are always coming up with new methods. Attackers increasingly use more sophisticated tools than just phishing sites, such as wallet drainers. Once access is obtained, these malicious apps are made to automatically transfer money from the victim’s wallet—often in dishonest ways.
Recently, the Angel Drainer—a infamous tool in particular—got an update to become AngelX. In a few of days, this improved version can launch hundreds of phishing DApps. Both security companies and individual users face substantial hurdles because to the speed and volume at which these technologies work.
Furthermore, criminals are getting better at taking advantage of different parts of the cryptocurrency ecosystem. For example, search engines have inadvertently displayed harmful phishing URLs. In one instance, users were persuaded to link their MetaMask wallets by fake Etherscan websites that DuckDuckGo presented, which might have allowed hackers to access users’ money.
Blockchain Features’ Part in Scams
The TON case study illustrates how fraudulent actors might use blockchain technologies that are meant to improve user experience. More participatory transactions were made possible by TON’s remark function, which also served as a conduit for phishing attempts. This emphasizes how crucial it is for blockchain developers to carefully weigh the security effects of new features, striking a balance between robust security against known vulnerabilities and functionality.
Other blockchains have also struggled with the possibility of malicious exploitation of their special characteristics. For example, smart contract systems have seen several instances of contract vulnerabilities being taken advantage of. The difficulty is in developing systems that are safe from advanced threats and easy to use.
In the battle against crypto fraud, user education is still as important as technology solutions. Rather than using technological flaws, human psychology is often the focus of effective phishing attempts. Victims are frequently persuaded to make snap judgments without doing adequate due diligence or are enticed with exaggerated return promises.
Phishing efforts may be considerably decreased by informing users about typical scam techniques, the value of transaction verification, and the fundamentals of cryptographic security. Effectively imparting this knowledge, particularly to those who are new to the crypto world, is still difficult.
Disclaimer
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About The Author
Victoria is a writer on a variety of technology topics including Web3.0, AI and cryptocurrencies. Her extensive experience allows her to write insightful articles for the wider audience.
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Victoria is a writer on a variety of technology topics including Web3.0, AI and cryptocurrencies. Her extensive experience allows her to write insightful articles for the wider audience.
