The Warning Against Disguised Crypto Scam
The co-founder of the crypto-focused VC firm Electric Capital, Avichal Garg, has warned investors about the potential of falling victim to a disguised crypto scam. Recently, scammers have been pretending to be representatives of Electric Capital and setting up meetings with individuals. They then deceive these individuals into sending money before any actual investment takes place.
The Increase in Social Engineering Scam Tactics
Garg emphasized the rise of social engineering scams in the crypto space, particularly through tactics such as phishing emails, baiting, and pretexting. To address this issue, Electric Capital is working on implementing additional verification measures on their social media channels to prevent impersonation.
Garg clarified that Electric Capital would never ask users to send money in advance before receiving an investment. He also pointed out that the firm has limited official communication channels, specifically through emails sent from the electriccapital.com domain.
In a recent cyber threat intelligence report by financial advisory firm Kroll, it was revealed that there has been an increase in social engineering scam tactics in 2023 compared to previous years. Garg further warned users that these scammers go to great lengths to appear legitimate, even conducting actual diligence to disguise themselves as Electric Capital representatives and attract victims to become limited partners (LP) in a fake “Electric” fund.
“Once diligence is done and founder is an LP in Electric, they will get investment,” said Garg.
It is essential for investors to remain vigilant and cautious when dealing with investment opportunities in the cryptocurrency space. Scammers are constantly evolving their tactics, so it is crucial to verify the authenticity of any communication and investment proposal before proceeding.
