- Metallica’s X account was hacked to promote a fake crypto token.
- False endorsements involved Ticketmaster and MoonPay.
- Metallica and MoonPay warned followers about the scam.
The crypto sector is no stranger to scams, and entities with large followings are particularly attractive targets. Hackers often target these accounts to promote scams to their audiences, causing millions in damages.
The most recent account to suffer this type of attack belongs to the metal band Metallica. Hackers used the compromised account to promote a fraudulent Solana-based token, METAL. In the short time it was compromised, the account caused significant damage to investors.
Celebrity and other high-profile social media accounts are proving to be soft targets for hackers. On Wednesday, June 26, hackers took over Metallica’s official X account, using it to promote a newly created Solana-based scam token METAL.
After getting control of the account, the hackers posted fake endorsements by Ticketmaster and MoonPay, including a Twitter Spaces call. They also promised discounts on tickets and merchandise for holders of the token.
It took about 90 minutes for Twitter support to flag the account and delete the fraudulent tweets. However, in the short time they were up, they caused significant damage to users. Notably, the token saw over $10 million in trading volume, with 30,000 individual transactions.
Due to the influx of transactions, the token’s price spiked to $0.0035, reaching a market cap of $3,6 million before collapsing. Currently, the token trades at $0.00002, with a market cap of just $24,000.
The trading pattern suggests that hackers used the promotion to dump their tokens on the buyers who saw the posts. The subsequent collapse suggests a pump-and-dump scheme, as the scammers decided to sell as much of the token as possible.
Metallica is far from the only large account that suffered a similar exploit. Even major crypto industry players are not immune. Earlier, hackers took over X accounts belonging to Microstrategy, Algorand CEO, and blockchain security firm Certik.
The rampant hacks of high-profile accounts, as well as the losses they cause, make it necessary for traders to be informed. Here are some of the tips on how to stay safe from similar scams:
- Verify on other platforms: Always verify the promotion on other channels, including the official website. It is far less likely that scammers gain control over multiple accounts.
- Spot unusual behavior: Be wary of celebrities or organizations suddenly promoting crypto, even though they have never mentioned it before. In that case, a scam is among the most likely options.
- Stay safe from Deepfakes: Sometimes, hackers will use Deepfakes to make their posts more credible. Be aware that the technology to make realistic fake videos is relatively accessible.
- Report scams: If you encounter a possible scam, report it to the platform. This will help protect other investors who might fall for it.
- Secure your accounts: Finally, to stay safe from getting hacked, always secure your accounts with two-factor authentication, and don’t reuse passwords for different accounts. This is easy with a password manager.
These tips help you stay safe and even help others who might fall for scams. Scammers and hackers can get even the most sophisticated actors, so getting involved to help the community is essential.
On the Flipside
- Despite a harsh regulatory stance towards crypto in the US, regulators and authorities are not doing much about crypto scams.
- The sheer number of celebrity accounts getting hacked suggests an urgent need for better security measures on social media platforms.
Why This Matters
Scams like these cost victims millions, and can affect even the most sophisticated actors. In addition, the reputational damage for victims of the hacks is severe. For that reason, getting informed about security is essential.
Read more about how to stay safe from Deepfake scams:
Elon Musk Deepfake Scams Crypto Investors: How to Stay Safe
Read more about Trump’s stance on crypto:
Trump to Speak at Bitcoin 2024, After Pro-Crypto U-Turn
Sourced from dailycoin.com.
Written by on 2024-06-26 15:00:00.
