In a shocking turn of events, members of the Shiba Inu (SHIB) community have become the targets of a highly sophisticated scam that preys on the “fear of missing out” (FOMO) mentality.
Scammers, utilizing advanced tactics and leveraging social media platforms, have managed to deceive unsuspecting victims into parting ways with their valuable SHIB tokens.
Read Also: Shiba Inu (SHIB) Holders Are Warned of 5 Distinct Scam Tactics Used To Steal Tokens
The Sinister Ploy of ‘Paper Hand’ and ‘Diamond Hand’
Exploiting the allure of potential profits, the scam revolves around fraudulent websites that claim to calculate earnings for SHIB holders based on the coin’s volatile price history. These websites are aggressively promoted on social media, enticing users to connect their cryptocurrency wallets to check their “paper hand” or “diamond hand” status.
The scam terminology plays a pivotal role in deceiving investors. “Paper hand” refers to individuals who sell their cryptocurrency holdings out of fear or panic, missing out on potential gains. Conversely, “diamond hand” signifies investors who hold onto their assets despite market volatility, displaying unwavering confidence in the long-term prospects of the cryptocurrency.
By connecting their wallets to these deceptive websites, unsuspecting victims unknowingly grant scammers access to their SHIB holdings. Exploiting this opportunity, the malefactors swiftly drain the victims’ wallets, leaving them with nothing but regret.
Elevated Danger
What sets this scam apart from traditional phishing attempts is its insidious use of advertising channels. Scammers have managed to infiltrate the newsfeeds of crypto enthusiasts with ads that appear as legitimate promotions. This tactic adds an air of credibility to the scam, making it more likely for users to click on the fraudulent links.
To further perpetuate the deception, the scammers have taken control of numerous hacked social media accounts. These compromised accounts, previously belonging to unsuspecting individuals, are now being used to share screenshots of enticing “paper PnL” (profit and loss) figures. These screenshots intensify the FOMO sentiment, increasing the vulnerability of potential victims.
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Protective Measures and Who’s at Risk
Despite the severity of the situation, major cryptocurrency wallet teams, such as MetaMask and Phantom, have taken proactive measures to protect users by flagging several of the malicious websites. These precautions aim to prevent users from accessing the scam websites through mainstream browsers.
Read Also: New Scam Alert: Shiba Inu Team Member Cautions SHIB Community
While the scam primarily targets meme coins like SHIB, PEPE, BOB, DOGE, and GROK, the scammers have expanded their focus to include DeFi coins such as Uniswap (UNI) and Convex Finance (CVX). This broadening scope demonstrates the adaptability and sophistication of the scammers as they seek to exploit unsuspecting investors and maximize their ill-gotten gains.
As the threat of this scam persists, cryptocurrency investors must remain vigilant. It is imperative to avoid connecting cryptocurrency wallets to unverified websites, regardless of the promises they might make.
By exercising caution, conducting thorough research, and verifying the legitimacy of websites, investors can protect themselves and their valuable digital assets from falling victim to such fraudulent schemes.
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