A fraudulent crypto token named ‘BRICS’ exploits the interest in the BRICS intergovernmental organisation, comprised of nations such as Brazil, Russia, India, China, South Korea, Egypt, Ethiopia, Iran, and the United Arab Emirates. The threat actors are disseminating misinformation about new countries joining the alliance and this deceptive narrative is serving as a cover for this crypto scam.
Cybersecurity researchers from Resecurity exposed this scam. According to the researchers, the counterfeit token, BRICS, was introduced via an initial coin offering (ICO). The threat actors promised many rewards and capitalised on the world’s growing interest in the BRICS organisation.
As per the researchers, this elaborate crypt scam originated from the unverified rumours that the BRICS nations are introducing a gold-backed currency to challenge the dollar. This scam is the best example of how a fake and unverified narrative can lead to several thousand people being scammed.
Researchers have classified these scams into two forms: DeFi scams altering smart contracts to defraud investors and exit scams involving extensive promotion followed by betrayal.
The common denominator in all these scams is the low entry barrier, making these scams accessible to a broad range of malicious actors.
Many platforms including Lobstr.co saw the occurrence of the scam. Usually, platforms like these offer much greater flexibility to the users whereby the users can create and exchange tokens on the Stellar network, thus making the transaction more susceptible to exploitation.
As of today, the fake token remains unavailable for trading, ensnaring unsuspecting victims. Researchers have strongly advised internet users to exercise due diligence when considering new cryptocurrency offerings and recommended contacting local regulators to verify their legitimacy.
Moreover, the researchers have also identified and reported similar cryptocurrency counterfeit tokens impersonating major oil corporations, national financial regulators, national fiat currencies, and major real estate developments. In recent months, scams involving misleading references to authorities such as the Monetary Authority of Singapore and Central Banks in the Middle East have also been exposed.
These scams have defrauded more than 2 million investors, surpassing the number of victims from major crypto failures like FTX, Celsius, and Voyager.
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