Police are investigating how a spoof email advised the media of a multi-million-dollar crypto theft, that never happened
A cryptocurrency theft by two Canadian teens who used a spoof crypto-exchange email, never happened. But there was a scam.
Police in Ontario are investigating the circumstances that led to media outlets in Canada and beyond reporting that scammers had used an email address that looked like a Coinbase support email to defraud a man of $4.2 million in digital currency.
That in itself should serve as a warning to wealth professionals and their clients that this kind of ‘spear phishing’ attack (targeted at an individual rather than the masses) can occur.
But there’s more to the story because the Hamilton Police email that alerted the media to the story was itself a spoof.
The fake story claimed that the Hamilton Police had entered into a joint investigation with the FBI and US Secret Service Electronic Crimes Task Force.
“Hamilton Police can confirm this investigation did not occur and the email did not originate from the Hamilton Police Service,” the police stated, adding that “impersonating a police officer is a criminal offence.”
Heightened awareness
The story highlights how not everything that appears in an email or online may be what it appears to be – especially in times of economic turmoil.
Last month the Canadian Centre for Cyber Security urged organizations to be vigilant and prepared for “potential disruptive cyber activity” from Russia-aligned malicious cyber actors.
Whether this ‘scam that was not a crypto scam but was a different scam’ was part of this threat, or even simply a prank, the warning is the same: be aware of the risks and do what you can to protect yourself and your clients.
PwC Canada recently warned of the evolving cyber threat from artificial intelligence and other tech developments, but also noted how technology has a defensive role to play.
"Even as threat actors look to use new technological innovations and AI to enhance their cyberattack capabilities, AI can be used to enable organizations to quickly detect and mitigate potential threats," said Umang Handa, partner, National Cybersecurity Managed Services Leader, PwC Canada. "In 2023 and beyond, organizations will need to embrace a more holistic approach to cyber security to manage the complexity of the rapidly evolving cyber threat landscape."
