Cryptocurrency users in South Korea are facing a new threat as fraudsters deploy an Ethereum-themed scam aimed at tricking unsuspecting investors into relinquishing their funds. Reports emerged on May 21 of scammers sending alarming text messages to smartphone users, falsely claiming that their ETH coins would be "burned" if they failed to take immediate action.

Phishing Text Messages Alarm Crypto Community

According to Asia Time, a South Korean media outlet, the fraudulent messages are spreading panic among crypto holders, prompting warnings from vigilant community members. The scam appears to originate from bogus exchanges, with some messages purporting to be from a global cryptocurrency exchange named Bit-Finance.

The deceptive texts allege that due to prolonged inactivity, recipients' Ethereum holdings will be burned on May 22, urging them to make withdrawals urgently to avoid losing their funds. To lend credibility to their claims, scammers cite specific amounts of ETH supposedly at risk, aiming to induce panic among recipients.

Sophisticated Tactics and Rising Cyber Fraud

Despite efforts to detect and block such messages, scammers are reportedly utilizing technology that allows their texts to bypass spam filters, posing a significant challenge to users' vigilance. Furthermore, the phishing links embedded in these messages redirect recipients to fake websites designed to steal their wallet details and passwords, highlighting the sophistication of these schemes.

The prevalence of such scams underscores the growing threat of cyber fraud targeting cryptocurrency users in South Korea. Last year alone, the National Police Agency recorded a 7.68% increase in cyber fraud cases, with virtual asset-related crimes accounting for over a third of reported incidents.

Law Enforcement Response and Investor Vigilance

South Korean authorities have pledged to combat these fraudulent activities, employing investigative techniques to track the flow of illicit transactions and crack down on perpetrators. However, users are urged to remain vigilant and exercise caution when receiving unsolicited messages or clicking on suspicious links, especially those related to financial transactions.

As the cryptocurrency market continues to attract mainstream attention and investment, the risk of fraudulent activities targeting unsuspecting users is expected to persist. Therefore, staying informed and adopting robust security measures are essential safeguards against falling victim to such scams.