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ETHEREUM
Insider Gold
TWITTER CRYPTOCURRENCY SCAM ECHOES PREVIOUS SCHEMES ON YOUTUBE
Hackers hijacked Twitter accounts belonging to Barack Obama, Elon Musk, Joe
Biden and Jeff Bezos, asking followers to send Bitcoins to their crypto wallet.
By William Turton, Bloomberg 23 Jul 2020 21:29
Image: Shutterstock
The Bitcoin scam that hackers deployed while breaking into the Twitter Inc.
accounts of political leaders and business titans last week closely resembles
similar schemes used previously on YouTube.
In the July 15 Twitter attack, hackers hijacked accounts belonging to Barack
Obama, Elon Musk, Joe Biden and Jeff Bezos and asked their followers to send
Bitcoins to their crypto wallet with a promise to double the amount. In a matter
of hours, the hackers had accrued more than $100,000.
But before compromising those accounts, the hackers targeted the Twitter
accounts of popular cryptocurrency exchanges, such as Coinbase Inc., Gemini
Trust Company LLC and Binance Holdings Ltd. In this case, the attackers tweeted
a link to a website dubbed “CryptoForHealth,” which also promised to double
donations made to a crypto wallet.
The move caught the attention of computer security researchers, who say similar
scams were perpetrated in recent months on Google’s YouTube. One of the
researchers, who like his colleagues requested anonymity because he isn’t
authorized to speak publicly, said it isn’t yet clear who was behind the Twitter
hack but said that the YouTube scams appeared coordinated.
The earlier attacks make clear that stealing user accounts to perpetrate
cryptocurrency scams isn’t a problem unique to Twitter. The possibility that the
incidents are connected may give investigators additional ways to identify the
perpetrators, people familiar with the scams say. In online forums, several
people have claimed to know the identity of the person behind the
CryptoForHealth websites.
An archive of cryptoforhealth.com
One website used as part of the apparent YouTube scams, “btc-gemini.info,” looks
almost identical to the “CryptoForHealth” site. Beyond the visual similarities,
the sites share technical details, such as IP addresses and website code,
according to a Bloomberg review of the data.
The links between the schemes on Twitter and YouTube aren’t definitive,
according to the researchers and Bloomberg’s analysis. But at the very least, it
shows how easily they can be duplicated, they said.
Alex Joseph, a YouTube spokesman, said the company takes account security
seriously by automatically protecting users and notifying them when suspicious
activity is detected. “If a user has reason to believe their account was
compromised,” he said, “they can notify us to secure the account and regain
control.”
YouTube declined to address whether the alleged crypto scams on its site were
related to the Twitter hack. On Tuesday, Apple Inc. co-founder Steve Wozniak
filed a lawsuit in state court n California alleging that YouTube has for months
allowed scammers to use his name and likeness as part of a phony Bitcoin
giveaway.
In the alleged YouTube scams, a hacker typically gained control of an account
and made it look like an official page of a cryptocurrency exchange or
celebrity. Taking over a YouTube account with an already established following
lets the hackers reach a wide audience. That was the same goal with last week’s
Twitter hack, which hijacked accounts with tens of millions of followers.
After gaining control of an account, the hacker typically live streams an
interview with the likes of Bill Gates and runs information about the fake
cryptocurrency giveaway alongside it. The alleged scam has been used with video
interviews of the Winklevoss twins (who founded popular cryptocurrency exchange
Gemini), and Vitalik Buterin, the creator of the Ethereum cryptocurrency.
In June, cybersecurity blog BleepingComputer reported three YouTube accounts
were hijacked to run a crypto giveaway scam, this time live streaming an
interview with Tesla Inc. Chief Executive Officer Elon Musk next to fake
information about the scam. In this instance, the perpetrator raked in more than
$150,000.
The live streams tend to attract a large audience for the alleged scams before
they’re detected by YouTube. In some instances, the perpetrators skip stealing
an account altogether and simply purchase YouTube ads promoting the alleged
scam.
An example of the scam on YouTube.
The cryptocurrency company Ripple Labs Inc. filed a lawsuit in April against
YouTube over the so-called “giveaway” swindle. “For every scam, giveaway, fake
conspiracy that is taken down, multiple more pop up nearly immediately,” the
company wrote in a blog post. “The reality is that big technology and media
companies need to take responsibility and be held accountable for protecting
consumers.”
In one case, a YouTube user with 282,000 subscribers was hacked and had his
account edited to appear as if it was representing the “Ripple Foundation,”
according to the lawsuit. The attackers then began posting videos from the
hacked account promoting the cryptocurrency scam. The user, Mesa Sean, who makes
videos of himself playing videogames, didn’t respond to a request for comment.
According to the lawsuit, YouTube accounts with hundreds of thousands of
followers are targeted with email phishing attacks, where hackers trick the
account owner into giving up their password. Ripple estimates that hundreds of
thousands of dollars worth of Ripple cryptocurrency have been stolen as part of
the illicit operations.
The string of high-profile scams makes it harder for cryptocurrency companies to
persuade consumers that their operations are secure.
”Last week’s Twitter hack is just the latest dramatic example of an ongoing and
widespread problem with social media platforms – malicious scams on Twitter,
YouTube, Medium, Instagram and others have proliferated for years with no real
solution,” Ripple Chief Executive Officer Brad Garlinghouse said in a statement.
In a motion to dismiss Ripple’s lawsuit filed on Monday, lawyers for YouTube
said it’s not liable for the scams under Section 230 of the Communications
Decency Act, which shields platforms from potentially illegal activity by users.
© 2020 Bloomberg L.P.
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