Fake Coinbase Sites Uncovered: $20M Crypto Heist

Fake Coinbase Sites Scam Users, Steal Over $20 Million

A significant cryptocurrency scam targeting Coinbase users has led to the theft of over $20 million. Chirag Tomar, an Indian national, has been sentenced to five years in prison for his role in orchestrating this elaborate scheme. The fraud involved creating fake websites that mimicked Coinbase, tricking victims into surrendering their login details and two-factor authentication codes.

The Mechanics of the Scam

The Department of Justice (DOJ) revealed that this sophisticated fraud began in June 2021, utilizing a counterfeit version of Coinbase Pro, a trading platform designed for professional investors. The scammers registered a URL similar to the real Coinbase site, which misled users into thinking they were logging in securely. Once victims entered their credentials, the fraudsters intercepted the information.

In some instances, the attackers convinced users to install remote access software, allowing them direct control of the victims’ computers. This gave the scammers unfettered access to their real Coinbase accounts. To enhance their deception, the fraudsters posed as customer service agents, directing victims to call a fake support line or contacting them directly. During these calls, victims were persuaded to share their two-factor authentication codes, which are crucial for securing accounts. With this information, the criminals quickly drained the victims' accounts, transferring the stolen funds to wallets they controlled.

Consequences and Investigation

Tomar and his accomplices transferred the stolen cryptocurrency through various wallets to quickly convert it into cash. This illicit money funded Tomar's lavish lifestyle, including luxury vehicles, expensive watches, and international travel. One notable case involved a North Carolina resident who lost over $240,000 after unknowingly sharing authentication codes with a scammer posing as a Coinbase representative.

Tomar was arrested at Atlanta Airport in December 2023. By May 2024, he pleaded guilty to conspiracy to commit wire fraud. The U.S. Secret Service and the FBI played crucial roles in investigating the scam, which ultimately led to the dismantling of Tomar's operation. Victims worldwide continue to feel the repercussions of this fraudulent scheme, highlighting the importance of vigilance in online transactions.

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