Social Engineering Crypto Scams Target Celebrities, Costing Investors Over $500M in 2024
2025-02-11 09:32:27
Cryptocurrency scams driven by social engineering surged in 2024, with hackers targeting celebrities and tech leaders to promote fake tokens, resulting in over $500 million in investor losses, according to a report by blockchain analytics firm Merkle Science.
Key Findings:
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Celebrity Targeting: Celebrities accounted for 33% of 36 identified cases, followed by tech figures (30%) and tech companies (19%). Government agencies and brands were rarely targeted (5% each). Victims averaged 2.3 million followers .
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Platform Dominance: 75% of attacks occurred on X (formerly Twitter), 19% on YouTube, and 5% via website hacks. Tactics included phishing links and bypassing two-factor authentication .
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Scam Types: Rug pulls and phishing attacks comprised 88% of incidents. Hackers promoted fake meme coins on platforms like Pump.fun, a Solana token minting site .
Notable Cases:
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Kylian Mbappé Hack: In August, soccer star Kylian Mbappé’s X account was hacked to promote a fake “MBAPPE” meme coin. The token briefly reached a $460 million market cap before collapsing, causing $1+ million in losses .
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Wiz Khalifa Incident: Rapper Wiz Khalifa’s account was used to launch a fraudulent “WIZ” token, which plummeted to zero value shortly after .
Merkle Science Analysis:
“By compromising influential figures and trusted platforms, hackers exploit credibility to manipulate investors at scale,” the firm stated. The report highlighted organized, planned operations rather than opportunistic attacks .
“By compromising influential figures and trusted platforms, hackers exploit credibility to manipulate investors at scale,” the firm stated. The report highlighted organized, planned operations rather than opportunistic attacks .
Industry Response:
Pump.fun’s co-founder Alon Cohen acknowledged the issue, noting that many meme coins lack real value and are used to exploit retail investors .
Pump.fun’s co-founder Alon Cohen acknowledged the issue, noting that many meme coins lack real value and are used to exploit retail investors .
Prevention Measures:
Experts urge platforms to enhance account security and educate users on recognizing phishing attempts. Investors are advised to verify projects before investing, especially those promoted via hacked accounts.
Experts urge platforms to enhance account security and educate users on recognizing phishing attempts. Investors are advised to verify projects before investing, especially those promoted via hacked accounts.