A recent bust by the Austrian police has uncovered a criminal network behind a scam that defrauded over $1.2 million from investors, mostly in digital assets. The operation, dubbed Rip-Deal 2.0, involved the use of fake cash to purchase digital assets, marking a new twist to the traditional “Rip Deal” scam. The mastermind, a 39-year-old Dutch man with Serbian roots, is currently serving a three-year sentence after being arrested in Milan earlier this year.
The scammers targeted victims by convincing them to deposit money into digital asset wallets, often luring them to luxury hotels abroad. Once the victims input their passwords or seed phrases, the scammers took over the wallets and wiped them clean. Austrian police have been pursuing the Dutch suspect for over three years, with one detective working closely with dozens of victims who were scammed by the criminal network.
This case is just one of many digital currency scams that Vienna police have investigated in recent years. Chief Inspector Gerald Goldnagl revealed that since 2020, they have solved over 100 cases involving losses totaling $26.3 million. Globally, digital asset scammers continue to cause havoc, with stolen funds and ransomware being two of the most common methods used by criminals to defraud victims.
In a separate incident, fraudsters are targeting Ledger users with a phishing campaign. Users received emails from a legitimate-looking address claiming to be Ledger support staff, stating that there had been a data breach and asking them to input their recovery phrase for verification. Those who fell for the scam had their wallets wiped clean. Ledger reminded users that they never ask for recovery phrases and urged them to be cautious of such phishing attempts.
Ledger users have been frequently targeted by scammers posing as Ledger staff or distributing fake software to steal from victims. The phishing campaigns intensified after a data breach in 2020, in which over a million clients’ personal information was leaked. Ledger reiterated that their systems are designed to keep users’ assets secure and under their control at all times, and they never contact users to ask for sensitive information like recovery phrases.
As digital currency scams continue to evolve and target unsuspecting investors, it is crucial for users to exercise caution and verify the authenticity of any communications they receive, especially when it comes to sensitive information like recovery phrases. By staying informed and vigilant, users can protect themselves from falling victim to these sophisticated scams and safeguard their digital assets.
