Scam Revealed: Teenage User Uncovers Counterfeit Gaming Sites Deceptively Claiming Affiliation with MrBeast and Other Popular Influencers
Young Developer Exposes Massive Crypto Gambling Scam
A 17-year-old developer, known as Thereallo, has exposed a vast network of over 1,200 fake crypto gambling sites, according to a report by cybersecurity journalist Brian Krebs.
Thereallo, a web developer and designer, runs multiple Discord servers where he investigates these fraudulent sites. He began his investigation after receiving numerous complaints about spam messages promoting these scam sites [1][2][4].
The scam involves a large network of fake online gaming and crypto gambling sites, all powered by the same backend system. These sites promise a $2,500 bonus at crypto casinos but require victims to make an upfront "verification deposit" of $100 in cryptocurrency to claim the bonus [1][4].
The scam uses fake endorsements by social media celebrities, including MrBeast, to appear legitimate. The scammers use unlicensed ads that appear to be from online influencers to pass off the fake sites as genuine licensed gaming sites [4].
Thereallo discovered that all sites generate unique Bitcoin wallets for each domain, but these are "decoy wallets" where deposits can never be withdrawn. Customer support is a mix of AI and humans who eventually block users trying to get refunds. Additionally, the sites track users across the entire network, blocking registrations if the user tries to create multiple accounts on sister sites from the same IP or device [2].
The scam is similar in style to “pig butchering” schemes popular in Southeast Asia, which systematically defraud people of money through phishing and manipulation. However, this scam targets gamers and crypto users at scale, using many domains and social media for rapid exploitation [4].
Brian Krebs, a former longtime computer security reporter for The Washington Post, validated Thereallo's findings and exposed the true scale of the scam via his website Krebsonsecurity on Wednesday [3].
In a report, Thereallo compiled screenshots and technical details of the scam and sent it to Brian Krebs. He ended his blog by stating that cracking the network proved that sometimes, the best way to protect your community is to figure out who's throwing rocks and go take their rocks away [2].
According to Zach Edwards, Senior Tech Researcher at Silent Push, the scam exposed a very odd type of pig butchering network [4]. Those who pay the fees or believe they've won will never see their money again, Krebs warns [3].
This investigation reveals the size and complexity of the scam, indicating a highly organized criminal operation. Despite his young age, Thereallo's work demonstrates the power of individual action in combating online fraud.
References: [1] https://thereallo.github.io/2021/09/23/massive-crypto-gambling-scam.html [2] https://thereallo.github.io/2021/09/23/massive-crypto-gambling-scam-2.html [3] https://krebsonsecurity.com/2021/09/massive-crypto-gambling-scam-exposed/ [4] https://www.bleepingcomputer.com/news/security/17-year-old-developer-exposes-massive-crypto-gambling-scam-involving-over-1200-fake-sites/
Technology played a significant role in the recent exposure of a massive crypto gambling scam, as a 17-year-old developer named Thereallo, using general-news research and cybersecurity skills, uncovered a network of over 1,200 fake crypto gambling sites. Crime-and-justice implications of this scam, which involves the systematic defrauding of people through phishing and manipulation, are high, as those who pay the fees or believe they've won will never see their money again.
