Kraken builds fake crypto account to ‘bait’ fraudsters

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US cryptocurrency exchange Kraken has offered a new way to flag malicious wallets. This involves building fake cryptocurrency accounts on exchanges to “cheat” the bad guys.

Popular streamer Kitboga (whose content revolves around annoying scammers) tweeted on May 10 that the Kraken used a “custom environment” to frustrate a scammer impersonating President Joe Biden. revealed that it was building break-in about a year ago.

In the attached video clip, Kitboga is seen holding about $450,000 worth of Bitcoin (BTC) in a fake crypto account built by Kraken.

The crooks then verify the funds via video remote computer screen-sharing software that supposedly tricks Kitboga characters into downloading them, and get very excited about the prospect of a big payday.

But the punchline is that Kitboga, who plays an elderly woman in the video, accidentally enters the scammer’s wallet address before transferring all the funds. As a result, the imposter becomes very enraged and begins swearing at Kitboga with her swear words.

In particular, the crooks appear to have provided a Kraken-hosted BTC wallet address. This essentially allows cryptocurrency exchanges to identify scammers and flag their activity.

The idea behind this collaboration appears to have been brought to life by Kraken’s Chief Security Officers Nick Percoco and Kitboga.

Kitboga has 1.2 million followers on Twitch and 3 million followers on YouTube. His content generally revolves around playing a bunch of non-tech-savvy characters to comedicly waste the time of call center crooks.

In some cases, reporting the fraud to the hosting company where the website is stored has been successful in removing the suspicious website.

“Every day there are scammers who take advantage of people. To downplay an otherwise dark situation,” his YouTube profile reads.

Cointelegraph reached out to Kitboga for comment.

In a May 1 video, Kitboga highlighted a new BTC-related “social security scam” targeting victims with emails and text messages claiming bizarre purchases were made in their bank accounts.

Related: $103M Lost in Cryptocurrency Fraud, Exploits, and Hacks in April – CertiK

However, when the victim called the phone number provided, the scammers said their identity had been stolen and they needed to withdraw all their cash, buy BTC, and transfer the funds to a “secure government wallet.” claim.

Kitboga apparently had fun with the scammers by pretending to get them to buy 10,000 BTC and transfer it to the wrong address.

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