Two teenage boys from Hamilton, Ontario, have been busted for allegedly stealing over $4 million worth of bitcoin (BTC) and ether (ETH) from an American man through what authorities described as a “spear phishing attack.”
According to local reports, Hamilton police started working with the United States Federal Bureau of Investigations (FBI) and the Secret Service Electronic Crimes Task Force to investigate the boys in June 2023.
Const. Krista-Lee Ernst of the Hamilton police noted that the boys, both 17 years old, used a spear phishing attack to deceive their victim into giving them $4.2 million in crypto.
A spear phishing attack is a targeted form of phishing used by scammers to trick individuals into revealing sensitive information such as passwords, credit card numbers, or other personal data. Unlike traditional phishing attacks that cast a wide net, spear phishing attacks are highly personalized and tailored to specific individuals or organizations.
In a spear phishing attack, the bad actor conducts thorough research to gather information about the target, such as their name, position, company, colleagues, or even personal details from social media platforms. With such information, the scammer can craft compelling and customized emails or messages that appear to be from a trusted source, such as a colleague, supervisor, or a reputable organization the target is associated with.
In the case of the Hamilton teens, the duo, known by their fake aliases “Felon” and “Gaze,” pretended to be members of the support team of the popular American crypto exchange Coinbase. They aimed to take over the man’s crypto account on the exchange.
After successfully gaining control of the account, the boys were able to access the man’s digital assets stored on the platform.
According to the police, the teens spent some of the funds to purchase the Instagram username “@zombie,” a rare username in the gaming community. Police also seized at least $13.4 million worth of digital assets after they were caught.
Although authorities initially arrested both teens, only one was charged with theft of over $5,000 and possession of property or proceeds acquired through criminal means, while the other was released.