Proofpoint threat researchers have released new insights uncovering a concerning rise in cryptocurrency scams targeting job seekers with fake job offers.
For years, Pig Butcher scammers have swindled victims out of billions by luring them into fake cryptocurrency investments. Recently, Proofpoint observed a shift towards job scamming, tapping into a market of financially insecure victims.
The scam exploits psychological mechanisms such as the Sunk Cost Fallacy, Loss Aversion and the Principle of Reciprocity, making it alarmingly effective, and according to Chainalysis – a cryptocurrency investigation company – these scams have already netted substantial amounts in cryptocurrency. For example, a fake site impersonating Daptone Records made over US$300,000 in just two months.
Key findings from the research include:
- There has been an increase in cryptocurrency fraud using fake job lures, impersonating well-known organisations.
- These begin with unsolicited messages on social media, SMS, or messaging apps such as WhatsApp and Telegram promising work-from-home opportunities, exploiting the popularity of remote jobs.
- Victims are directed to register on malicious websites, often requiring referral codes. Once registered, victims perform tasks like fake reviews or product orders.
- Eventually, victims encounter ‘errors’ requiring them to pay into fake accounts, lured by promises of bonuses.
- A high confidence that these scams are linked to ‘Pig Butchering’, a romance-based cryptocurrency investment fraud: the job fraud offers smaller but more frequent returns for scammers compared to traditional Pig Butchering.
- Scammers leverage brand recognition instead of long romance scams and use flexible platforms for various lure types.
In June 2024, the FBI issued a warning about these fraudulent job scams originating on mobile devices. To protect against these scams, Proofpoint recommends vigilance regarding unsolicited job offers, never providing money to supposed employers and spreading awareness.
In conclusion, the report found that cryptocurrency investment and job-related scams are extremely prevalent and use sophisticated social engineering techniques to convince people they are legitimate. Just like confidence scammers have done for centuries, fraudsters continue to promise easy money to unsuspecting targets to swindle them.
To protect against these types of scams, Proofpoint recommends the following:
- Remain vigilant about unsolicited job offers, no matter the platform or application on which it is received. These fraudsters often use social media and SMS, but similar techniques have been observed in email as well.
- Never provide any money to a person who claims to be an employer. While this particular scam relies on the target paying into a fake job website, Proofpoint has observed other job scams that ask for payment for alleged goods and services like computer equipment to conduct advance fee fraud (AFF).
- Remember the old adage: If it seems too good to be true, it probably is.
- Spread the word. Knowledge is power when fighting scams.
