LayerZero fraudulent airdrop affected many Twitter users

A recent phishing attack has resulted in the depletion of numerous crypto wallets, targeting Twitter users through the LayerZero fraudulent airdrop.

Certik, a security firm, recently cautioned users to exercise caution when participating in any airdrops, as they discovered that fake airdrops were being promoted on Twitter by accounts impersonating Layer Zero. These fraudulent tweets include links to a counterfeit LayerZero website.

Upon clicking these links, users are redirected to a website that closely resembles the official LayerZero website. The bogus trading platform then prompts users to connect their cryptocurrency wallets to claim the airdrop. However, as users connect, their wallets are emptied of all their cryptocurrency holdings.

According to the Chainalysis Crypto Crime 2022 report, cryptocurrency scams have witnessed a significant rise, with a 79% global increase in 2021 alone. Additionally, illicit addresses received an astonishing $14 billion within a year. The FTC disclosed that between January 2021 and June 2022, cryptocurrency scams resulted in over a billion dollars in losses, affecting more than 46,000 individuals who reported their losses.

Among these scams, fraudulent schemes have emerged as the most lucrative form of cryptocurrency-based criminal activity and continue to generate substantial revenue in 2023. Numerous cryptocurrency scams have caused significant financial harm to market participants in recent years. One prominent example is the notorious OneCoin scam, which is estimated to have caused losses exceeding $25 billion, making it one of the largest cryptocurrency scams on record.

Another notable case is the BitConnect scam, which led to investor losses of approximately $4 billion. The Bitclub scam is believed to have resulted in losses of up to $722 million. Furthermore, other digital currency scams such as fake bitcoin investment schemes, rug withdrawals, romance scams, phishing attacks, and fraudulent job offers have been reported in recent years.

Interestingly, scams related to cryptocurrencies, such as high-yield fraudulent schemes, have gained popularity and now represent a significant proportion of all scams. Cryptocurrency-related fraud has witnessed a staggering 183% increase compared to the previous year.

Governments around the world are increasing their efforts to create regulations that reduce risks and protect investors as the cryptocurrency industry continues to develop.

Noteworthy events, such as the collapse of FTX and regulatory measures taken against trading platforms like Binance, underscore the need for robust oversight.