Nicola W. - The Binance Trust Wallet Whatsapp Scam
by:
Paulo
September 14, 2023 at 11:00:00 AM
In the age of digital currency, cryptocurrency scams are on the rise, and scammers are becoming more sophisticated in their tactics. Recently, a Portuguese WhatsApp group named "Trust Wallet A69" was created as it attempted to scam unsuspecting individuals by posing as legitimate representatives of Binance and Trust Wallet, two well-known cryptocurrency platforms. In this article, we will provide a comprehensive summary of the conversations that took place in this group and highlight the red flags that can help you identify and avoid similar scams. The presented print screens are real and from here you may understand the sofistication of these kind of scams.
The Group's Creation and Initial Red Flags
The "Trust Wallet A69" WhatsApp group was created with an Indian phone number, but shortly after its creation, only UK phone numbers became the group admins.
This is a clear indication that something is amiss, as it raises questions about the group's authenticity and the true identities of its administrators.
False Promises and Expertise
The group's admin, who identified themselves as Nicola, claimed to be an expert in cryptocurrency and investments. They introduced Jerry as the head of the group, responsible for capital investments aand strategic mergers and acquisitions. While their descriptions seemed impressive, it's crucial to note that scammers often use elaborate personas to gain trust.
This imagee doesn't exist in the Binance Lab website (https://labs.binance.com/). It is not their activity and, most important, Smart Clound Mining is not made usign Stable Coins as in this scam, the USDT (https://www.begincoinmining.com/blog/binance-cloud-mining-review-profitability-tutorial/ - "Now, Binance cloud mining only supports Bitcoin mining."), how off could this be from actual Binance services?
Why don't people make a simple Google search for this basic information? Part of the explanation can be found in this quite interesting article: "5 Common Causes of Bad Decisions." However, one tends to believe that these five causes are exacerbated when one is in front of the screen, whether it's on a mobile device, tablet, or computer.
Misleading Information
The group's description emphasized the promotion of Trust Wallet and Binance in Portugal and claimed to provide investment advice and information on cryptocurrencies. However, their real motive was far from educating users about crypto; it was to deceive them.
Switch to Trust Wallet Focus
As the group evolved, it changed its name to "Trust Wallet PT A69" and shifted its focus primarily to Trust Wallet. This change in direction might have been an attempt to gain more trust from its members, as Trust Wallet is a legitimate cryptocurrency wallet owned by Binance.
Fake Investment Campaigns
The scammers promised an upcoming investment campaign with "stable returns" and claimed it was risk-free. This is a classic tactic used by fraudsters to lure victims into sharing their confidential information or making financial investments.
The Smart Cloud Scam
The scammers introduced the concept of "smart cloud" and discussed its potential profitability. Smart cloud is a made-up term, and its purpose was likely to confuse members and make the scam seem more legitimate.
(Translation: In fact, the biggest risk for Smart Cloud Mining is the decline in tokens, and that's why we are using the stablecoin USDT for this purpose. Stablecoins are primarily used as a mechanism to hedge against the high volatility of the cryptocurrency market. Stablecoins have many advantages over traditional fiat currencies, offering faster transactions with lower fees, making them a better option for everyday payments. Smart Cloud Mining is using USDT stablecoins, which are protected against the risks associated with token fluctuations, reducing the risk and ensuring stable returns for Smart Cloud Mining.)
https://cryptoscam.wixsite.com/avoid/faq#cloudmining
https://cryptoscam.wixsite.com/avoid/faq#smartcontract
https://cryptoscam.wixsite.com/avoid/faq#miningsc
Trust Wallet's Legitimacy
Throughout the conversation, the scammers repeatedly emphasized the trustworthiness of Trust Wallet. While Trust Wallet is indeed a reputable cryptocurrency wallet, it's essential to remember that legitimate platforms will never ask for your confidential information in unsolicited messages.
Protecting Yourself from Cryptocurrency Scams
To protect yourself from cryptocurrency scams like the one discussed here, here are some key takeaways:
Verify Identities: Be skeptical of anyone claiming to be an expert. Verify their credentials and cross-check information.
Check Group Authenticity: Investigate the group's origin and the identities of its admins. Be wary of sudden changes or suspicious activities.
Question Unsolicited Invitations: If you're added to a group without explanation, question the motives behind it. Legitimate groups provide clear reasons for joining.
Avoid Promises of Easy Money: Be cautious of investment opportunities that promise guaranteed returns with no risk. Cryptocurrency investments carry inherent risks.
Educate Yourself: Take the time to educate yourself about cryptocurrency and blockchain technology. Knowledge is your best defense against scams.
Secure Your Information: Never share personal or financial information in unsolicited messages. Legitimate organizations will never ask for this.
BUT, HOW ARE SCAMS EXECUTED?
They will ask you to install Trust Wallet (or a similar cryptocurrency wallet app) and then for you to transfer USDT (or another stable cryptocurrency), as example, often displaying wallets with large sums of money to entice you.
Next, they will send you a link to what they claim is the "Smart Cloud Mining" (remember this doesn't exist!!!) subscription. It is at this point that you will be asked to share your wallet address and private key, and this is when you will lose control of your wallet!!!
Have you notice the web address. It is not the Binance domain!!!
Checking the creation date of this domain.
Observe how they conceal their identity behind a pre-registrar company.
https://www.privacyguardian.org/
Cryptocurrency scams are on the rise, and scammers are becoming more crafty in their approaches. By staying vigilant, questioning suspicious activities, and educating yourself, you can protect yourself from falling victim to such scams. Remember, if it sounds too good to be true, it probably is. Stay safe in the world of cryptocurrencies!
Visit our FAQ page where many of these concepts are explain in a simple maner.