Phishing scams, attacks disguised as legitimate communication or websites designed to steal funds and sensitive information, cost crypto users over $12 million in August, up 72% from July, Web3 anti-scam service Scam Sniffer reported on Saturday.

Crypto phishing scams impacted 15,230 victims in August, a 67% increase from July, with the single largest loss costing one user over $3 million, according to Scam Sniffer.

The Scam Sniffer team also noted a “sharp escalation” in EIP-7702 signature scams. EIP-7702 is an Ethereum improvement proposal that allows Externally Owned Accounts to act as smart contract wallets that can execute transactions and shift funds.

Scammers and hackers exploiting this functionality drained over $5.6 million in August through three separate attacks, Scam Sniffer said.

Scams and cybersecurity exploits continue to be a problem in crypto, with over $163 million stolen in August through malicious activity. The persistent threat is a reminder for crypto users to remain vigilant and practice good anti-phishing and anti-scam security measures.

Related: Venus Protocol recovers user’s $13.5M stolen in phishing attack

Good practices for staying safe against phishing scams

Losses from crypto hacks and scams crossed $3.1 billion in the first half of 2025 amid increasingly sophisticated attack methods.

Scammers often target users by posing as legitimate and well-known cryptocurrency exchanges, either setting up fake websites with similar URL addresses to legitimate exchanges or sending fake communications to users.

These communications include emails, text messages, and even physical letters sent through the mail, designed to steal sensitive user information, including seed phrases for crypto wallets and passwords to online accounts. 

Typically, the scammers will pretend to be customer service agents from reputable exchanges, claiming that the user’s account is facing some sort of threat or cybersecurity issue and demand personal information from the user, including seed phrases.

Good practices to avoid phishing scams include checking URLs for tiny mistakes and bookmarking pages instead of using search engines or the search bar to access websites every time, verifying website links, and avoiding downloading attachments or clicking links from unknown sources. 

Phishing scams often contain misspelled words or grammatical errors, and any of these mistakes is a red flag; users should read through messages carefully to detect such errors.

Crypto and Web3 users should also use virtual private networks (VPNs) to mask their IP addresses and physical locations, never give out seed phrases or passwords, and enable two-factor authentication for sensitive online accounts.

Magazine: $55M DeFi Saver phish, copy2pwn hijacks your clipboard: Crypto Sec

]]> https://earlybirdsinvest.com/phishing-scams-cost-users-over-12m-in-august-heres-how-to-stay-safe/feed/ 0 57113 https://earlybirdsinvest.com/t3-launches-with-binance-to-fight-blockchain-based-scams/ https://earlybirdsinvest.com/t3-launches-with-binance-to-fight-blockchain-based-scams/#respond Wed, 13 Aug 2025 09:45:57 +0000 https://earlybirdsinvest.com/t3-launches-with-binance-to-fight-blockchain-based-scams/

A group formed by TRON
TRX


$0.3557

, Tether
USDT


$0.9947

, and blockchain analytics firm TRM Labs has frozen over $250 million in crypto linked to illegal activity.

The team, called the T3 Financial Crime Unit (T3 FCU), is expanding its efforts through a new partnership program called T3+, with Binance

$17.92B

as the first participant.

T3 FCU was set up in September 2024 to detect and respond to suspicious blockchain transactions.

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The T3+ program aims to connect crypto exchanges, financial companies, and other key players, so they can share data quickly and respond collectively.

As part of this effort, the unit worked with Binance to stop around $6 million from being moved in a fraud case known as a “pig butchering” scam.

Binance said joining T3+ fits into its goal of improving security in the industry. Nils Andersen-Röed, who leads Binance’s financial intelligence team, said building trust in blockchain means everyone needs to take part in making sure the technology is not misused.

TRON’s founder, Justin Sun, said T3+ will help the group expand cooperation across the industry and react to threats as they happen. He emphasized that joint efforts between companies and law enforcement are key to making the crypto industry safer.

TRM Labs, which provides technical expertise for the group, said the results show that this model of teamwork can scale across borders. According to Chris Janczewski, who leads global investigations at TRM Labs, it also shows how law enforcement and private firms can operate together more effectively.

Arkham Intelligence, a blockchain analytics firm, recently reported that it identified a Bitcoin theft that went unnoticed for years. How? Read the full story.

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Key takeaways

• Pump-and-dump schemes in Web3 manipulate a cryptocurrency’s price through coordinated buying along with misleading information and hype to lure investors in before a mass selling of a token, leaving it almost worthless.

• Decentralized anonymity and 24/7 unregulated trading make the industry particularly vulnerable to these manipulative investment schemes.

• A pump-and-dump follows four stages, including the token prelaunch, promotional hype building at launch, price pumping through buying action and a coordinated sell-off by orchestrators running off with profits. 

• You can protect yourself from falling for pump-and-dumps by avoiding unsolicited investment advice, being skeptical of social media ads and avoiding schemes with promises of unrealistic returns in short time frames. 

Coordinated pump-and-dump schemes have dogged the Web3 ecosystem and crypto market for years. Often described as the Wild West of the digital world, the allure of quick profits has always attracted those looking to manipulate investments at the expense of others who believe unrealistic promises. 

With regulations continually playing catch-up, combined with the decentralized design of the industry, these schemes have often gone under the radar for law enforcement. Still, recent efforts show that Web3 is no longer impervious to regulators. For example, in October 2024, Operation Token Mirrors resulted in $25 million being seized and 18 people being charged. 

In this article, you’ll learn about “pump-and-dump schemes,” including their definition, how they operate and how to protect yourself from these sophisticated manipulation tactics. 

What are pump-and-dump schemes in Web3?

A pump-and-dump scheme refers to the intentional manipulation of a cryptocurrency or blockchain asset’s price. The market price of these digital assets is achieved through coordinated buying coupled with misleading information. 

Once the scheme ringleaders achieve their desired price, they initiate a violent sell-off to take their profits. This results in all other investors sitting on severely devalued or worthless tokens. The phrase refers to this process of “pumping up” a token’s price, then “dumping” the token and the price concurrently. As these assets generally have little to no value, the price never recovers, and innocent investors are stuck. 

Why do pump-and-dump schemes work in Web3?

The peer-to-peer decentralized design of Web3 makes it a fertile ground for this type of market manipulation. Often, token creators and project developers hide behind internet anonymity and use privacy-focused communication channels like Telegram. This makes it difficult for investors and authorities to hold schemers accountable for their deception.

Additionally, markets are tradeable 24/7 without concrete regulatory oversight or circuit breakers. Easy token creation on platforms like Pump.fun, which saw over 1 million tokens launched in 2024, further exacerbates the problem. 

Did you know? The insiders of a pump-and-dump scheme regularly net profits of over 100% and in the top cases, over 2,000% in a single event. 

How pump-and-dumps work in Web3

Web3 pump-and-dump schemes tend to follow four stages: pre-launch, launch, pump, and dump.

1. Pre-launch: To kick things off, hype is built around a new or relatively low-valued token. This is done using strategies like pre-sales and community building on platforms like Telegram, Discord and X. 

2. Launch: Promotion ramps up a new level, often including promoters like unsuspecting influencers to widen awareness and attract more excited investors. 

3. Pump: Misleading or fake news is spread through the community about potential big price increases or business partnerships. This skyrockets the market price of the token as people invest increasing amounts while pushing demand through the roof. 

4. Dump: When the Web3 token price manipulation reaches an attractively profitable level for the orchestrators, they sell off their holdings in large amounts. The huge sell-off causes the token’s supply to massively exceed demand and drop prices. Investors left holding tokens cannot sell before the token value is almost completely wiped out.

Did you know? Some coins can be targets of repeated pump-and-dump attacks. According to a study from the University of Bristol, the most attacked coin was targeted 98 times over a four-year period. 

Staying safe and spotting pump schemes in crypto

It can be difficult to distinguish Web3 trading manipulation tactics from an enthusiastic and legitimate investment opportunity. The potential rewards from getting in early on the next big legitimate crypto token provide perfect cover for the illegitimate decentralized pump-and-dump operators. 

Here’s how to spot potential fraud and coordinated crypto pump groups:

• Avoid unknown investment advice: If a stranger contacts you on social media or a messaging app and quickly turns the conversation into a “sure thing” investment, then be wary. It’s best to be cautious and not engage. 

• Crypto social media ads: Social media platforms have been plagued with investment ads that promise high returns. They might appear like legitimate companies or even use fake media to fool investors. Be particularly wary of high-profile celebrities who appear to be promoting Web3 projects. Often, manipulators create deepfakes of well-known names without their permission or backing.

• Do your own research: Don’t fall for pressurized investment opportunities where it’s a “now or never” chance to invest. Always take your time to research projects. You should find out about the founders, developers, track record and company information. If this is obscure or insufficient, then it’s best to avoid investing. 

• Spread your risk: Be vigilant for investment promises of high returns for little risk in a short timeframe. Certainly, don’t commit the majority of your funds to any single investment; instead, diversify your funds to spread the risk and rescue losses on any investments that go wrong in the event of crypto market manipulation in Web3.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

40% of Brits who have been victims of frauds or scams in the last year haven’t been able to recover the money lost as a result, highlighting the urgent need for fraud-resistant payment methods, a new survey has revealed. 

As open banking emerges as a viable safeguard for merchants and financial institutions, research from Pay by Bank provider Yaspa shows consumers lose £765 on average to scams, with the average percentage of lost funds recovered sitting at 34%.

In the last 12 months, 16% of Brits who have experienced fraud or scams have lost between £250 and £500, while 1 in 10 have lost between £500 and £1000. Survey data revealed that the average financial loss for men was £943 – significantly higher than women, whose average came in at £476.

Younger people lost less on average, with 16-24 year olds losing an average of £284 in scams and fraudulent activity, while all other age groups lost between £750 and £900 on average. This could be in part due to younger people being more technologically savvy than their older counterparts, or that they would have less disposable income to part with. 

Financial losses were also higher in Northern Ireland, with the average amount of money lost due to fraud in the last 12 months being £2290, followed by the North East at £1337, Wales at £1285 and Greater London at £1151. 

The nationally representative survey found 35% of respondents were a victim of fraud in the last 12 months – an estimated equivalent of around 17.5 million people. Over half of Brits (54%) said they believe it is easier to scam people today than 5 years ago, compared to just 19% of respondents who disagreed and felt it is harder to do so, while 70% of respondents said they are concerned about them or a loved one becoming a victim of fraud in the next 12 months. 

According to the survey, it was online mediums that ranked the highest for the ‘most common’ occurrences of fraudulent activity, with online shopping scams, phishing emails, and Facebook Marketplace scams considered the most common according to respondents. 

Investment scams, AI or deep fake scams, and unlicensed gambling operators also ranked highly, with nearly a quarter of Brits (24%) stating they believe ticket buying for concerts and sporting events is the most common platform for fraudulent activity or scams.

When asked if the government and its agencies were doing enough to protect consumers from fraudulent activity, nearly 40% didn’t agree. Almost 1 in 2 (49%) shared that the primary responsibility for protecting consumers sits with the government, while 44% felt it should be the responsibility of banks and financial institutions. Just over a third (38%) believed responsibility should sit with the police, 37% said technology and social media companies, while 26% felt it lay with the individual. 

Nearly a third of those surveyed (33%) shared they felt the solution to tackle fraudulent activity was in improved technology for better detection. 

Highlighting Pay by Bank as an alternative technology to reduce the risk of financial loss as a result of fraud, Amie Kadhim from Yaspa shares: “Push payment fraud is one of the most damaging types of fraud today – and once the money’s gone, it’s rarely recovered. Scammers exploit the trust people place in bank transfers, highlighting the urgent need for better safeguards.

“With a background in card acquiring, I’ve seen how Pay by Bank offers a more secure alternative. Open banking, the technology behind it, moves money directly between accounts using strong customer authentication, without exposing sensitive card details or leaving gaps for fraudsters.

“With a third of respondents saying technology for fraud detection could be the best way to protect consumers against scams, other technological innovations in the payments sector could also be effective in fighting against these crimes.

As fraud tactics evolve, we must stay ahead with smarter and more secure technology – and help consumers understand which payment methods truly offer better protection. Pay by Bank does exactly that.”

The following is a guest post and opinion of Ken Jon Miyachi , Co-Founder of Bitmind.

According to the “Q1 2025 Deepfake Incident Report,” 163 deepfake scammers took more than $200 million from victims in the first four months of 2025. It’s not simply an issue for the rich or famous; it’s impacting regular folks just as much. Deepfake frauds are no longer a little problem.

Deepfakes used to be a fun way to make viral videos, but now criminals use them as weapons. Scammers use artificial intelligence to make phony voices, faces, and sometimes whole video calls that are so convincing they deceive consumers into giving them money or private information.

Surge in Scams

The survey says that 41% of these scams target famous people and politicians, while 34% target regular people. That means that you, your parents, or your neighbor could be next. The emotional damage is worse than the monetary damage. You feel violated, betrayed, or helpless.

For instance, in February 2024, a company lost $25 million in one scam. Using a deepfake video discussion, hackers purported to be the company’s chief financial officer and demanded wire transfers to fake accounts straight away. The worker sent the money since they thought they were doing what they were told.

It wasn’t until they called the corporate office that they realized the call was bogus. This wasn’t simply one thing that took place. Similar techniques have hurt engineering, computer, and even cybersecurity organizations. If smart people can be fooled, how can the rest of us stay safe without better defenses?

Its Impact

The technology used in these scams is quite scary. Scammers may copy someone’s voice with 85% accuracy using only a few seconds of audio, as from a YouTube video or a social media post. It’s much tougher to tell if a video is phony; 68% of individuals can’t tell the difference between fake and actual material.

Criminals search the internet for things to use to make these fakes, and they use our own posts and videos against us. Think about how a scammer may use a recording of your voice to get your family to send them money or a false video of a CEO directing a huge transfer. These things are not just science fiction; they are happening right now.

There is more damage than just money. The survey says that 32% of deepfake cases involved explicit content, and they commonly target people to humiliate or blackmail them. 23% of the crimes are financial fraud, 14% are political manipulation, and 13% are disinformation.

These scams make it hard to believe what we read and hear online. Imagine getting a call from a loved one who needed help, only to find out it was a scam. Or a fake seller who steals all of a small business owner’s money. There are more and more of these stories, and the stakes are getting higher.

So, what can we do? It begins with educating oneself. Companies can show their employees how to spot warning signs, like video conversations that seek money straight away. A fraud can be avoided by basic tests like asking someone to move their head in a certain way or answer a personal question. Companies should also limit how much high-quality media of their CEOs is available to the public and add watermarks to videos to make them harder to misuse.

Everyone’s a Target

It is really important for people to be vigilant. Be careful what you put online. Scammers can use any audio or video recording you post as a weapon. If you get an odd request, don’t do anything immediately. You can either call the person again on a number you trust or check in another method. Efforts to raise public awareness can help stop bad behaviors, especially among groups who are more prone to be affected, such as elders who may not understand the effects. Media literacy isn’t just a trendy word; it’s a shield.

Governments also have a role to play. The Resemble AI study suggests that all countries should have the same laws that define what deepfakes are and how to punish them. New U.S. laws say that social media sites have to take down explicit deepfake content within 48 hours.

First Lady Melania Trump, who has talked about how it affects young people, was one of the persons who pushed for this. But laws by themselves aren’t enough. Scammers operate in a lot of different countries, and it’s not always easy to detect them. It could be a good idea to set worldwide criteria for watermarking and content authentication, but first, IT companies and governments need to agree on them.

There isn’t much time left. By 2027, deepfakes are expected to cost the U.S. $40 billion, with a growth rate of 32% each year. In North America, these scams rose by 1,740% in 2023, and they are still rising. But we can change it.

We can fight back using smart technology—such as systems that can detect deepfakes in real time—as well as better regulations and good practices. It’s about getting back the trust we used to have in the digital world. The next time you get a video call or hear someone you know ask for money, take a big breath and check again. It’s worth it for your peace of mind, your money, and your good name.

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According to reports, Ripple has sounded the alarm over a wave of new scams targeting XRP holders on YouTube.

XRP recently climbed past its 2018 high of $3.61, driving its market cap above $200 billion. That success has brought out a swarm of fraudsters.

They’re hijacking active channels, rebranding them with official logos, and posting fake “double your XRP” giveaways. Victims send coins — and they never see them again.

Between 2021 And 2023, Social‑Media Scams Drained Billions

Between 2021 and 2023, social‑media scams drained nearly $3 billion from users. Close to $2.5 billion of that figure came from “deep fakes”, or video impersonation schemes alone.

Those numbers show just how far fraud can reach when scammers copy official branding. It’s easy to feel safe clicking on a familiar logo, especially when XRP is surging and emotions are high.

Like clockwork, with success and market rallies, scammers ramp up their attacks on the crypto community — PLEASE BEWARE of the latest scam targeting the XRP family on @YouTube and impersonating @Ripple’s official account! We will keep reporting these – please do the same.

As… https://t.co/WodO4ZUyW9

— Brad Garlinghouse (@bgarlinghouse) July 23, 2025

Scammers Ride XRP’s Upswing

Fraudsters are quick to follow every price jump. When XRP passed $3.50 last week, cloned YouTube accounts started popping up everywhere.

They promise to match or double any deposit sent to a wallet address. Most channels even splice in real clips from Ripple events to look legit.

Then they swap in fake names and profile pictures in Ripple’s style. The losers? People who think they’re dealing with the real company.

Deepfakes And Paid Ads Fuel Scam Growth

Based on reports, scammers aren’t stopping at simple editing tricks. They’re using social engineering and other kinds of tools to drop in interviews with actual Ripple team members.

Then they overlay voice‑overs and fake on‑screen text that invites people to send XRP for a giveaway. Some even buy paid ads on Facebook and Instagram to spread their posts faster.

If one channel is flagged and removed, another three or four crop up within hours. It’s a game of whack‑a‑mole that favors the scammers and the speed at which they operate.

This year, deepfakes have been ensnaring a growing number of unsuspecting victims. Source: Metamoworks/Adobe Stock

Community Response And Executive Warnings

Meanwhile, Ripple CEO Brad Garlinghouse has publicly urged people to stay alert every time the crypto market gains steam.

He’s pointed out that fake giveaways and phishing setups pop up whenever XRP makes headlines. His message is clear: scams evolve as fast as the market itself. And they won’t stop unless users learn to spot the red flags.

User Warnings And Safety Tips

To stay safe, never send XRP or any other coin first in hopes of a reward. Always compare the channel name and URL against those listed on Ripple’s official site.

Enable two‑factor authentication on YouTube, email, and any exchange accounts you use. If you see a suspicious post or ad, report it immediately — and warn others in community forums so they don’t fall for the same trick.

Featured image from Unsplash, chart from TradingView

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.

Authorities in the Chinese city of Shenzhen have warned residents about fraudulent investment schemes tied to digital assets and stablecoins.

In a statement published on July 7, the city’s Office of the Municipal Task Force for Preventing and Combating Illegal Financial Activities cautioned against deceptive platforms posing as legitimate crypto investment opportunities.

According to the task force, bad actors are exploiting public enthusiasm for digital assets. They are promoting false investment opportunities using terms like “stablecoins,” “virtual currency,” and “digital assets.”

These groups use flashy advertising to lure victims into illegal activities, including pyramid schemes, gambling operations, fraud, and money laundering.

The statement emphasized that such schemes violate China’s financial regulations. According to the authorities, most of these organizations are unlicensed and are illegally raising funds from the public. In such cases, any financial losses are not protected and must be borne by those who invested in the fraudulent projects.

As a result, the city urged investors to avoid offers that promise unrealistic returns and report suspicious platforms.

According to the statement:

“If you find that relevant institutions are engaged in illegal fundraising in the name of investing in stablecoins, please report it to the non-leading department of the city or district or the public security department in a timely manner. The relevant departments will verify the reported clues, crack down on them according to law, and reward the informants according to regulations.”

Stablecoins draw international attention

Shenzhen’s warning comes amid a global rise in stablecoin adoption, with demand growing in both emerging and developed markets.

Stablecoins, which are digital assets pegged to fiat currencies like the US dollar, have gained popularity for offering price stability in volatile markets. This utility has made them a go-to option for users looking to store value or transact across borders.

The stablecoin market, worth an estimated $256 billion, is primarily dominated by US dollar-pegged tokens like Tether’s USDT and Circle’s USDC.

Due to this, Chinese companies such as JD.com and Ant Group have reportedly expressed interest in developing CNY-pegged stablecoins. This move aims to counterbalance the dominance of US dollar-based assets and increase the Chinese yuan’s international use.

However, authorities in the US are also working on further entrenching the dominance of dollar-based assets.

As a result, US lawmakers recently introduced the GENIUS Act—a new bill aimed at regulating and promoting stablecoin innovation. US Treasury Secretary Scott Bessent recently stated that the regulation would allow dollar-linked stablecoins to exceed a $2 trillion market cap.

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Amin Ayan

Crypto Journalist

Amin Ayan

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Amin Ayan is a crypto journalist with over four years of experience in the industry. He has contributed to leading publications such as Cryptonews, Investing.com, 99Bitcoins, and 24/7 Wall St. He has…

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July 7, 2025

Authorities in Shenzhen have issued a warning to residents about fraudulent financial schemes posing as stablecoin investments, as rising interest in stablecoins attracts unscrupulous actors.

In a notice released Monday, Shenzhen’s Office of the Special Working Group for Preventing and Combating Illegal Financial Activities said some entities are leveraging buzzwords like “financial innovation” and “digital assets” to promote scams disguised as legitimate opportunities.

“These entities exploit new concepts such as stablecoins to hype up so-called investment projects involving ‘virtual currencies,’ ‘virtual assets,’ and ‘digital assets,’” the office said.

Stablecoin Scams Pose as Innovative Investments

Authorities cautioned that stablecoin schemes often involve illegal activities like fraudulent fundraising, gambling, pyramid schemes, and money laundering.

The advisory comes as stablecoins gain global attention. Pan Gongsheng, governor of China’s central bank, recently acknowledged that stablecoins and central bank digital currencies are transforming international payment systems.

Meanwhile, Hong Kong has taken steps to regulate the sector, with its Legislative Council passing a stablecoin bill in May to establish a licensing framework for issuers.

On the international stage, the U.S. Senate advanced the GENIUS Act last month, a landmark stablecoin bill now awaiting House deliberation.

Hong Kong’s Financial Secretary Christopher Hui added Monday that the city could begin issuing stablecoin licenses later this year, but suggested approvals would be limited.

Last week, the Hong Kong government unveiled its latest policy statement, outlining plans to accelerate real-world asset tokenization and expand the city’s crypto licensing regime.

The new “LEAP” framework focuses on legal clarity, ecosystem growth, real-world adoption, and talent development, with a stablecoin licensing regime set to launch on August 1.

The government also plans to regulate tokenized government bonds and ETFs, paving the way for secondary market trading of these products on licensed digital asset platforms.

It aims to expand tokenization efforts into sectors like metals and renewable energy, highlighting use cases such as gold and solar panels.

Stablecoins Edge Closer to Mainstream Adoption

Stablecoins have emerged as one of crypto’s rare success stories, capturing the attention of corporations and regulators alike.

Recent reports that Amazon, Walmart, and other major companies are exploring stablecoin payments sent ripples through traditional finance, briefly pushing stablecoin transaction volumes ahead of Visa’s in 2024.

Frank Combay of Next Generation said regulatory clarity, especially Europe’s MiCA framework, has unlocked stablecoins’ growth potential by removing the biggest barrier: uncertainty.

He believes stablecoin ecosystems can reduce transaction costs by over 90% and are becoming increasingly attractive to both consumers and corporations.

In the US, the proposed GENIUS Act could mark a turning point. Passed by the Senate and awaiting House review, the bill would require stablecoins to be backed by U.S. Treasuries, mirroring existing models from Tether and Circle.

Supporters argue this could strengthen the dollar’s dominance in digital finance, while critics worry it could expand federal debt.