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Indian investors lost up to Rs 1,000 crore as a result of CoinEgg scam, CloudSEK discovers

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A recently published study found that many Indian investors are falling for high-profile cryptocurrency-related and cryptocurrency-related scams.

investigation by India Cybersecurity firm CloudSEK researchers have revealed that threat actors were behind the “CoinEgg scam” as the team of researchers found an ongoing malicious scheme involving various payment gateway websites, and Android-based apps, that are being used to lure unwary people into a large-scale gambling scam.

According to their findings, “The loss of users to the CoinEgg VIP scam is estimated at Rs 10 billion. [Rs 1,000 crore]. A user also claimed to have lost Rs 50k in this cryptocurrency scam including additional costs like deposit amount, taxes, etc.”

CloudSEK’s threat analyst team said that threat actors have created several fictitious domains with the keyword “CloudEgg” resembling cryptocurrency trading sites.

It is noteworthy that the original web address of CoinEgg is www[.]Currency[.]com. This company is a UK-based cryptocurrency exchange that provides trading services for virtual currency assets.

It has been observed that the dashboard and user interface of the sites were created to be exact replicas of the original site and that the scam was conducted by the threat actors in multiple stages.

“In the first stage of the scam, CoinEgg users are tricked into depositing an amount into the fake wallet, into investing it in a listed cryptocurrency. Then, the attackers freeze the amount in the CoinEgg VIP wallet and prevent users from recovering it,” the report stated.

In addition, a number of phone phishing scams masquerading as CoinEgg are rife online. These applications usually require unnecessary rights during installation and are flagged as malicious on different systems.

According to CloudSEK’s BeVigil security search engine, these malicious rights include write settings, system alert window, request installation packages, site access, and outgoing call handling.

While explaining how it works, the team noted that to avoid users noticing a large-scale scam, if the victim complains about his experiences on other platforms, in the seventh phase of the plan, the attacker contacts them using additional false identities and pretends to be an investigator.

Furthermore, the scammers send an email to their victims asking for private information such as ID cards and bank account numbers in order to release the frozen assets. These details are then used to carry out additional activities.

According to their findings, the scammers mention the word “CoinEgg” on the index page, use a fake CoinEgg logo to win the trust of victims, and use a customer service chatbot that redirects users to the fifth domain.[.]Chatbak[.]xyz.

They found two domains used by scammers and both were said to have been registered on GoDaddy on March 3, 2022, as part of a strategy to create multiple backup domains in case of removal.

However, CloudSEK is not the first or only company to report a recent increase in cryptocurrency-related scams around the world.

FBI special agent Sean Ragan claimed last week in an interview with CNBC that LinkedIn users are being targeted by crypto scammers who pose a serious threat to them.

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