Ethereum-Related Fraud Aims at South Korean Cryptocurrency Sector

Fraudsters are focusing on South Korean cryptocurrency users with an Ethereum-related scam, as reported by token holders in the country on May 21.

As per the South Korean news source Asia Time, scammers are dispatching alarming text messages to smartphone users, cautioning them that their ETH coins will be “burned” on May 22 unless they take immediate action.

Ethereum-themed Crypto Scam ‘Originating from Fake Exchanges’

This scam emerges as law enforcement and regulatory bodies indicate that “cybercrime associated with virtual assets” is “increasing.”

Members of the crypto community have taken to online forums to alert fellow token holders about a “phishing text message” that is circulating. One post cautioned:

“You could easily fall for it, so exercise caution.”

The Ether (ETH) price surged on Monday as traders speculated that the SEC might approve Ethereum ETFs as early as this week following rumors of a significant SEC reversal. ETH was last seen trading with gains exceeding 10% in the $3,400 range. …https://t.co/nqEc2tAqhS

— Cryptonews.com (@cryptonews) May 20, 2024

Some individuals warned that scammers employ technology that enables their messages to evade spam filters.

Certain text messages purport to come from a “global cryptocurrency exchange” called Bit-Finance.

The messages caution that “due to” the token holders’ “prolonged inactivity,” their Ethereum assets “will be burned on May 22.”

Ethereum vs the USD over the past five days. (Source: TradingView)

The message advises crypto holders to “make withdrawals as soon as possible” to prevent the loss of their funds.

Recipients are urged to click on a link that will guide them through the process and help protect their assets.

Community Members Post Warnings

One community member shared a screenshot indicating that the senders claimed a total of ETH 54.5 of their assets would be burned if they did not take action.

The enclosed link appears to direct smartphone users to a phishing site, where scammers attempt to persuade individuals to input wallet information and passwords.

NEW: An issuer source informs me regarding the spot $ETH ETF development:

Things are “evolving in real time.” https://t.co/3NwkCrPIl3

— Eleanor Terrett (@EleanorTerrett) May 20, 2024

The media outlet highlighted that “cyber fraud involving real virtual assets is on the rise” in South Korea.

Last year, the National Police Agency reported handling 167,688 cyber fraud cases throughout the year, marking a 7.68% increase compared to 2022 figures.

“Crimes involving virtual assets” constituted 38.3% of the total for 2023, as explained by the police agency.

Citizens have also submitted a total of 2,209 reports to the regulatory Financial Supervisory Service from January to April this year.

In each instance, victims claimed to have incurred financial losses due to crypto scammers.

The regulator noted that 17.7% of these cases are linked to phishing attacks. It has previously stated that crypto-themed phishing is “widespread” in South Korea.

Police Vow to ‘Fight Back’

Police experts indicated that the increase in attacks represents an “opportunistic” strategy by scammers, given the buoyant crypto markets.

In recent months, South Korean markets have been energized as numerous exchanges began offering commission-free crypto trading.

This, experts concurred, has also contributed to a rise in transaction volumes – and a subsequent increase in phishing attacks.

An official from the Cyber Investigation Unit at the National Police Agency stated that crypto criminals are increasingly utilizing so-called “daepo phones.”

This term refers to mobile numbers created using stolen identity and social security number credentials. The official remarked:

“Recently, fraud has become more sophisticated. There has been an increase in virtual asset-related crimes using daepo phones, as well as chat applications like KakaoTalk and Telegram. However, we are fighting back. We are employing investigative methods that track the flow of transactions.”

Discussions regarding the launch of spot bitcoin exchange-traded funds (ETFs) are set to take center stage, driven by the significant victory of the main opposition Democratic Party of Korea (DPK) in the April 10 general elections.https://t.co/SCuLmwNVyf

— The Korea Times (@koreatimescokr) April 21, 2024

Last month, South Korean media outlets reported that phishing attackers are now strategically targeting credit card users and victims of crypto scams.

Typically, these attackers aim to redirect their victims to counterfeit crypto exchanges and wallet platforms.

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