ICO Phishing Scams Now Leading to Blanket Bans on Crypto

ICO Phishing Scams Now Leading to Blanket Bans on Crypto

In recent days, two more ICOs have become victims of phishing attacks. Scammers targeted BEE Token from last Wednesday in a series of phishing scams luring investors to false contributions addresses through both email and Telegram.

The Bee project team began warning investors of the various scams as early as 27 January; by the end of last week, however, con artists had walked off with an estimated $1 million. Some comments online have been referring to a breach of security within the Bee project team itself although there appears to be no concrete evidence of this at this stage.

Government and Business Reacting 

Over the weekend, yet another token sale – Seele – was targeted by two scammers posing as admins on the ICO’s Telegram channel. The impersonators managed to convince investors to send $2 million worth of ETH to their own wallet addresses. Once again, it has been alleged that the scammers were actually members of the team, though Seele denies this.

The growing popularity of ICOs and the relatively low levels of regulation have inevitably attracted numerous cybercriminals, and it has now reached the point where both government and business are beginning to react.

Facebook has imposed a blanket ban on advertising of any products related to cryptocurrencies and ICOs. This also appears to include forbidding promotion of any content with even vague references to cryptocurrency-related subjects.

The company announced that the ban was intentionally broad to keep scammers off the platform. For the past few years, Facebook users have seen a growing number of ads using misleading or fake news reports to sell trading products.

The Chinese government has itself gone a step further. Having formally banned ICOs, it has now proceeded to ban all websites that carry any association with cryptocurrencies of any kind. Websites in China have now reportedly dropped ads for crypto-related products.