Scammers will always find a way, especially in crypto, where regulation is often lacking and enforcement feels like a distant dream.
So, how do you fight back?
Simple. Beat them at their own game, waste their time, and watch them squirm.
Kitboga Strikes Back
A pseudonymous streamer known as Kitboga designed an effective and satisfying new weapon in the fight against crypto fraud: a fake Bitcoin ATM โmaze.โ
A popular tool for crypto scammers is to have victims deposit cash into a Bitcoin ATM; the machine will then produce the destination wallet address and transaction ID.
Once the scammers have the newly converted Bitcoin, they can ignore the victim and move on. Bitcoin ATMs are surprisingly accessible โ there are over 40K worldwide โ and so are an easy tool for scammers to use.
Kitboga has weaponized the ATM part of the scam and turned it against would-be scammers.
He crafted a digital โmazeโโa nightmare of customer service loops, endless hold queues, CAPTCHA, and AI-powered confusion. Itโs like an evil bureaucratโs dream: a twisted journey through digital hell, with a fake Bitcoin waiting at the end.
Kitbogaโs trap has wasted over 4,000 hours of scammersโ time. What started as comedic content has transformed into a real-time weapon against scams, gathering intel and frustrating fraudsters at every turn.
Engineering the Maze
When scammers demand victims deposit cash at Bitcoin ATMs, Kitboga counters with a Photoshopped receipt: a QR code linking to a fictional exchange and a hotline that leads victims (or, in this case, scammers) into a purposeโbuilt labyrinth.
Once inside, attackers must solve tedious tasks in the guise of CAPTCHA or human verification: estimate the number of nuts in a bucket, gauge wave heights, or even play Derudeโs โSandstormโ on a keyboard (as an added bonus, each attempt causes the CAPTCHA to speed up).
Enter the wallet address incorrectly โ and of course, itโs a fake, so it will automatically be incorrect โ and Kitbogaโs system triggers automated phone interactions where an AI will intentionally mishear digits, repeat prompt failures, and eventually trap the scammer in prolonged hold periods.
Over the past year, the fake ATM has trapped about 500 scammers, occupying them for 3,953 hours, approximately 164 days.
On average, each scammer spends nearly 3 hours in the maze, while the record stands at 156 hours; thatโs more than six days.
Six days in which the scammer wasnโt scamming someone else.
More Than a Time Waster
Kitboga isnโt merely playing games with scammers; heโs gathering actionable intelligence. Registering on the fake crypto exchange Kitboga set up requires scammers to enter their Bitcoin address, giving the team a growing database of known scam wallets.
Some attackers inadvertently reveal video feeds or other identifiers. In collaboration with Kraken, crypto funds obtained by scammers have reportedly been frozen based on information from the maze.
The fake ATM maze is Kitbogaโs โsecond most effective tool,โ behind AIโpowered autodialers. His team is launching similar infiniteโmaze tactics for other scam types, including gift card fraud and mailedโcash schemes.
Bitcoin ATM scams are nothing newโbut their scale is increasing. In the first half of 2024, U.S. consumers lost nearly $65M to scams routed through ATMs; 2023 saw over $100M lost in crypto ATM scams.
But like normal people, for fraudsters, time is money. Every minute spent in Kitbogaโs maze is not spent scamming real victims โ the maze even requires scammers on hold to respond with ridiculous phrases or risk losing their spot.
Scambaiting isnโt the only tool in the arsenal โ other entities, like Chinese law enforcement, are turning to different tools.
Chinese Local Law Enforcement Step Up
Beijingโs Haidian District Peopleโs Procuratorate exposed an embezzlement-driven crypto laundering operation involving Kuaishou employees. The employees siphoned approximately ยฅ140M ($20M) via Bitcoin and mixers routed through at least eight overseas exchanges.
Authorities recovered 92โฏBTC (ยฅ89M, $11.7M) and successfully prosecuted eight insiders, issuing prison terms ranging from 3 to 14 years alongside financial penalties.
China has some of the strictest anti-crypto policies in the world. That makes the potential gains from crypto scams even greater, though it elevates the risk. A prosecutor noted the case exhibits all the traits of modern digital-era corruption:
- Small-scale officials engaging in big fraud
- Crypto-aided money laundering
- Poor risk control within corporations
Though China has banned crypto trading and mining, underground operations remain vibrant. Earlier investigations uncovered a $2.2B money laundering ring using OTC brokers, secret shell companies, and exchanges, often used to bypass Chinaโs strict foreign exchange caps.
In the end, what brought down the latest crypto scamming ring was dedicated local law enforcement, illustrating that the path forward to fight scams involves boots-on-the-ground in more than one way.
The fight also requires increasing everyday crypto literacy โ and that means a top-of-the-line crypto wallet.
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Scambaiting, Local Enforcement, Best Wallet Keys to Crypto Safety
What began as comedic scambaiting for Kitboga evolved into a novel form of activism. It highlighted just how important it is to have a comprehensive approach to avoiding crypto scams โ an approach that heavily features Best Wallet.
As always, do your own research. This isnโt financial advice.
