Scambait Tactics: A Joint Effort by Kraken and Kitboga to Flag Illicit Crypto Wallets

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In an unprecedented move, the renowned US-based cryptocurrency exchange, Kraken, has adopted an ingenious method to identify and flag suspicious wallets. The “scambait” method entails creating a fake crypto account on the platform to lure unscrupulous players into the open.

A Unique Collaboration to Outsmart Scammers

The popular internet personality, Kitboga, known for his endeavors in thwarting scam attempts, disclosed the innovative tactic via a tweet on May 10. His content, primarily focused on outsmarting scammers, had caught the attention of Kraken, leading to the establishment of a specialized “scambait” environment on the platform. This collaboration resulted from a previous encounter with a con artist who impersonated President Joe Biden.

In a video accompanying Kitboga’s tweet, the streamer showcased a pseudo-crypto account on Kraken with $450,000 worth of Bitcoin. The con artist lured into the trap, spotted the funds via a remote computer screen-sharing tool, which he purportedly tricked Kitboga into installing, and anticipated a substantial payday.

The climax of this event unfolded when Kitboga, embodying an elderly lady in the video, purposefully mistyped the scammer’s wallet address before transferring the funds, leading to the scammer’s extreme frustration and an outpour of expletives.

Interestingly, the scammer had provided a Bitcoin wallet address hosted by Kraken. That effectively allowed the cryptocurrency exchange to pinpoint the culprit and flag their illicit activities.

The Power of Collaboration in Tackling Cyber Crime

This extraordinary achievement was made possible by the joint effort of Kitboga and Kraken’s Chief Security Officer, Nick Percoco. With a strong following of 1.2 million on Twitch and 3 million on YouTube, Kitboga uses humor to engage with his audience, portraying various tech-illiterate characters to waste scammers’ time and expose their deceitful schemes.

He has even shut down fraudulent websites in certain instances by alerting the respective hosting companies.

Kitboga’s YouTube profile emphasizes the harsh reality of scams plaguing people daily and his commitment to counteracting these threats. Through his videos, he meticulously navigates through the scammers’ manipulative scripts, unearths their lies, and reports any crucial information, all while injecting humor into an otherwise grim situation.

In a recent video, Kitboga shed light on a newly-emerged Bitcoin-associated “social security scam.” The scam lures victims through emails or text messages, informing them of strange transactions linked to their bank accounts. The victims are falsely informed that their identities have been compromised upon contacting the provided numbers. They are then instructed to withdraw their funds, purchase Bitcoin, and transfer them to a “secure government wallet.”

Scambait: A New Era in the Fight against Crypto Scams

Kraken and Kitboga’s collaborative approach to combating crypto scams represents a significant stride in cybersecurity. 

By leveraging the “scambait” tactic, they have demonstrated a unique way to identify and flag suspicious wallets and raised awareness about the critical need for vigilance in the rapidly evolving world of cryptocurrency. 

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