Criminals are using approval phishing, a technique that tricks users into granting attackers access to steal cryptocurrency from their wallets, which has resulted in over $2.7 billion lost since May 2021.
The intelligence was used in sprints across six countries with law enforcement and cryptocurrency exchanges to train investigators, trace stolen funds, and share leads, which have helped prevent scams and recover stolen funds.
Calgary Police Service and Chainalysis collaborated in “Operation Disruption” to target cryptocurrency scams through blockchain analysis, identifying over 770 victims of crypto fraud with combined losses of $59 million, mostly Canadians.
Law enforcement and crypto businesses involved then took swift action to warn the victims and potentially prevent further thefts. Using blockchain intelligence paves the way for a wider “Operation Spincaster” initiative.
Law enforcement and cryptocurrency exchanges are partnering to combat cryptocurrency scams, which involves information sharing on relevant technologies and the development of proactive investigation methods.
Agencies like Policia Nacional and NCA are achieving success in combating cryptocurrency scams through public-private partnerships. Operation Spincaster exemplifies this approach, combining preventive measures and fraud detection with collaboration between the public and private sectors.
This collaborative effort not only strengthens overall crime-fighting but also yields valuable knowledge about the specific methods used by cryptocurrency scammers, allowing for more targeted investigations and takedowns.
The UK’s National Crime Agency (NCA) collaborated with police forces to identify over 230 approval phishing victims in the UK and uncover £33 million in suspected stolen funds.
Their digital asset teams are aiding ongoing investigations, aiming to disrupt cybercriminals and protect the public regardless of their location, emphasizing the importance of collaboration between law enforcement and industry partners to combat the evolving threat of cybercrime.
Law enforcement and financial institutions collaborated in Operation Spincaster to identify new tactics used in cryptocurrency scams, which involved collaboration between Chainalysis, law enforcement, cryptocurrency exchanges, and the Financial Intelligence Unit (FIU).
During the operation, cryptocurrency exchanges were trained on detecting approval phishing scams and were able to freeze wallets to prevent further loss of funds, which established a collaborative effort to disrupt and prevent future cryptocurrency scams.
Binance and NDAX are collaborating in “Operation Spincaster” to combat crypto crime by sharing leads to trace stolen funds, identify victims, and educate them to prevent future losses.
Binance utilizes its investigative expertise for fund tracing, while NDAX emphasizes compliance and risk management by leveraging data and industry strengths to improve security and build trust in the cryptocurrency ecosystem.
A multi-party approach is necessary to combat crypto scams, and public education can raise awareness and user vigilance. Cryptocurrency exchanges can leverage transaction monitoring and analytics tools to detect suspicious activity and freeze funds.
Operation Spincaster, which demonstrates the efficacy of blockchain technology in preventing scams, serves as an example of how law enforcement agencies can use blockchain analytics to trace illicit funds and disrupt criminal operations.
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