QUICK TAKES
- On X yesterday, Nick Neuman (Casa CEO) admitted to being the victim of a scammer acting as a Coinbase support member.
- In an unusual turn of events, he made the fraudster admit to stealing crypto worth five figures weekly.
- Neuman tweeted his entire call with the imposter, who willingly detailed his entire scam process in-depth.
A brazen crypto phishing scam targeting esteemed blockchain experts nets five figures in weekly incomes.
But Nick Neuman (CEO of Casa, a Bitcoin self-custody provider) was not one to be reckoned with.
The cybersecurity professional unmasked one of many pretend Coinbase support members as a scammer.
Instead of falling prey, he received insights into the impersonators’ con tactics and broadcasted his self-confessed misdeeds.
Coinbase Fraudster Earned $35K Two Days Ago
After picking up a call from the scammer (and smartly recording the entire conversation), Neuman shared his bizarre experience on X.
Recently I was called by someone pretending to be Coinbase support, trying to steal bitcoin.
I decided to turn the tables on him and ask him about being a scammer.
Things got wild – he completely changed his personality & told me everything.
Presenting: To Catch a Scammer 🕵️♂️ pic.twitter.com/OZ6TQAiq5s
— Nick Neuman (@Nneuman) November 20, 2024
Initially, the fraudster probed Neuman to reset his Coinbase password via a spoofed email akin to a legitimate Coinbase notification.
But, the answer he received wasn’t what he likely intended.
Neuman point-blanked asked, ‘I’m curious, how many people do you usually get with this when you try to phish them?’
The hacker quickly flipped the switch from being a supportive Coinbase member to a boastful hustler discussing their non-deserving piggy bank.
We make a minimum of five figures a week. We hit like $35K just two days ago. We do it for a reason. You know what I mean? There’s money to be made in it.
He then went on to explain how they ‘don’t call poor people.’ Instead, they target those in the blockchain industry (CEOs and software engineers) who hold a minimum of $500K.
Their riches are exploited because they have access to the Unchained database, a financial service company that lends users crypto provided they have $375K worth of $BTC.
Moreover, he confessed they have an auto-doxxer that investigates victims’ identities, saving time by ensuring they’re worthy targets.
If those exploited retain a sizable crypto balance, the scammers assume they have a Coinbase account (because it’s a popular exchange). If not, they hang up the line and continue swindling.
KYC Platforms Are No-Go Zones for Scammers
Beyond pinpointing the rationale for the suspects, Neuman scrutinized many aspects of the misleading operations.
Ultimately, the scammer admitted that their goal isn’t to receive passwords but to steal funds through this cunning process:
- Probe victims to click on the phishing page
- Guide them to a page with a new seed phrase
- Instruct them to create a new Coinbase cold wallet using the seed phrase
- Request them to whitelist their new wallet address
- Convince them to transfer their digital assets into the scammers’ account
Moreover, he explained that they don’t use platforms with KYC measures and transfer the funds into $XMR (a cryptocurrency that uses advanced cryptographic techniques to mask transaction details).
Eventually, the funds are transferred into $ETH to HODL in wallets like Ledger and Exodus for additional gain in case the price goes up.
Even Crypto Experts Aren’t Scam-Proof
Such an incident highlights the troubling reality of needing to remain vigilant in the DeFi realm. When money is involved, no one can be trusted.
Albeit clever, the scammers’ tactics are particularly alarming because they show that no level of crypto expertise can safeguard against scams.
It serves as a stark reminder that privacy is the best defense mechanism against the dark underbelly of blockchain technology.
References
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Leah is a seasoned British journalist with nine years of expertise who specializes in Web3 reporting. Her insightful contributions have graced the pages of respected publications, including Coinbound, Cointelegraph, Bitcolumnist, NFT Lately, and NFT Plazas. With a keen eye for detail, she offers distinct perspectives on the ever-evolving blockchain industry.
View all articles by Leah Waters (Alger)
The Tech Report editorial policy is centered on providing helpful, accurate content that offers real value to our readers. We only work with experienced writers who have specific knowledge in the topics they cover, including latest developments in technology, online privacy, cryptocurrencies, software, and more. Our editorial policy ensures that each topic is researched and curated by our in-house editors. We maintain rigorous journalistic standards, and every article is 100% written by real authors.
