Researchers have noticed that more fake tokens are being created, with scammers pretending to be well-known companies. These fraudsters are pretending to be big brands, government agencies, and even claiming their tokens are real national currencies.
Many of these scammers are pretending to be oil companies and regulatory bodies, especially the Monetary Authority of Singapore (MAS) and some central banks in the Middle East.
One noteworthy example is a fake token called BRICS. Scammers are using the excitement around the BRICS alliance, which includes nine countries: Russia, Brazil, India, China, South Africa, the UAE, Iran, Egypt, and Ethiopia. Scammers have already held an initial coin offering (ICO). Researchers say that platforms like Lobstr.co are popular with scammers because they let users create tokens on the Stellar network with very few rules.
Fake token creators have already fooled over 2 million investors, more than the number of people affected by the crashes of crypto platforms like FTX, Celsius, and Voyager. Scams also happen a lot in the decentralized finance (DeFi) world, where hackers change smart contracts to steal money or when developers leave a project and take investors’ funds with them.
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