Crypto scammers who robbed $55 million USD were arrested

A recent security report claims that four individuals were arrested on Japanese territory due to their alleged involvement in a fraudulent scheme for cryptocurrency investment in which users were invited to invest in a digital trading system operated with artificial intelligence. Authorities estimate that about 20,000 Japanese invested in this scheme, which rose about $55 million USD. The four suspects, all Japanese citizens, were arrested on July 12.

The operators of the scam, dubbed “Project Oz”, claimed that this automated system would allow investors to recover up to 100% of their assets in less than four months, which needless to say was not fulfilled. Upon realizing the scam, those affected began filing lawsuits with the authorities.

Scammers recruited potential victims through a seminar for those interested in cryptocurrency investments and through the popular Japanese messaging app LINE. The communication strategy of the hackers was very good and they managed to incorporate dozens of potential investors in a short time.

Before the arrests, investors scammed in localities like Nagoya had already filed criminal charges with the police, even for 2 years. Authorities will also raid the homes of the alleged scammers.

While artificial intelligence and other new technologies continue to be exploited by evil actors to make such scams attractive, this technology has also made it possible to find dangerous cybercriminals. An example of this is the Dubai Police, which has managed to disrupt some ambitious cybercriminal campaigns thanks to the use of artificial intelligence.

Moreover, British authorities have announced a plan to increase their ability to track suspicious ads related to cryptocurrency investments, as these spam campaigns are becoming a problem.

To learn more about information security risks, malware variants, vulnerabilities and information technologies, feel free to access the International Institute of Cyber Security (IICS) websites.