Cryptocurrency scammers lure thieves with public seed phrases to new scheme: Kaspersky

It looks like a new crypto scam is flipping the script on thieves. By publicly sharing seed phrases, scammers set up bait wallets that ensnare opportunists in a deceptive scheme designed to exploit their attempts to steal funds.

According to the latest findings from cybersecurity firm Kaspersky, scammers are posting crypto wallet seed phrases in YouTube comments with newly created accounts.

initial bait

The scheme begins with a comment under a finance-related video of someone claiming they need help transferring USDT, a stablecoin, to another wallet. They reveal their full seed phrase, essentially sharing their wallet key, which looks suspicious at first glance. This act of sharing a seed phrase is a red flag as it is the gateway to and control of a wallet’s funds.

Kaspersky revealed that the comment looks something like this:

“I have a question. I have USDT stored in my wallet and I have the initial phrase. How to transfer my funds to another wallet?”

Upon further investigation, Kaspersky said similar comments were posted from newly created accounts, each with identical recovery phrases and requests for help. The scam assumes that an unscrupulous person, instead of offering help, could take advantage of the situation. With access to the seed phrase, they can open the wallet, which could contain a significant sum of cryptocurrency, in this case the equivalent of $8,000 in USDT.

However, scammers have set a trap. The wallet is actually multi-signature, requiring multiple approvals to authorize transactions. When a thief tries to transfer USDT, he discovers that the wallet does not have enough TRX to cover the transaction fee. When the thief tries to send TRX from his own wallet, the tokens are redirected to a completely different wallet. This clever setup ensures that even the most opportunistic thief can’t easily steal your funds.

Trap for the greedy

Kaspersky research reveals that the scam primarily targets other criminals, tricking them into becoming victims. By impersonating inexperienced crypto users, scammers trick thieves into trying to steal funds they ultimately cannot access.

“Therefore, scammers pose as novices who foolishly share access to their crypto wallets, fooling equally naive thieves, who end up becoming victims. In this scenario, scammers are something like digital Robin Hoods , as the scheme primarily targets other corrupt individuals.”

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