So they set up a fake website that looked like it was from Coinbase and contacted him. They were able to log in, but they still needed that challenge token, in this case, the PIN,” Dimitrelos said.
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“I’m still not back in my account, so I cannot tell how bad the damage is, but it’s in the hundreds of thousands,” he said.ĭimitrelos says thieves used a hacked username and password from a security breach to enter Blumetti’s email account and identify him as a crypto trader. “This is by far not only the most unsuspected thing that’s ever happened to me that I didn’t see coming, but the worst,” Blumetti said.īlumetti invested proceeds from the sale of his family’s beverage distribution business into cryptocurrency, which was stolen last month. His client Joe Blumetti learned that the hard way. And if you can get law enforcement to help you, all they can do is trace back these transactions to most likely foreign countries,” Dimitrelos said. “Someone can steal your money without any recourse. It’s because that’s where the money is today.”ĭimitrelos says, unlike banks and credit card companies, cryptocurrency exchanges don’t yet have adequate policies to address fraudulent transactions. “This year, I’ve done more cryptocurrency fraud investigations than all other years combined. It’s still the wild, wild west,” Dimitrelos said. Secret Service Agent Gus Dimitrelos says cryptocurrency theft is one of the fastest-growing cyber-crimes. “And then eight hours later, after you noticed it, you notified Coinbase and their response was none of the transactions can be frozen or reversed,” Jared said. “They were able to make these changes and transfer all of our money via this app over to their wallet in an instant,” Tanja said.
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That allowed the crooks to use two-factor verification to access her Coinbase account. “When they did the SIM swap they switched over email addresses to make their email to be the back-up and my phone number is now their phone number,” Tanja said. Someone contacted Tanja’s cell provider Cricket Wireless, pretended to be her and had her SIM card - containing her pictures, contacts and apps - electronically transferred to a new phone. “I noticed that all of the sudden my phone stopped working, the internet stopped working,” Tanja said. “All these people who are investing think their money is safe and it’s not,” Tanja Vidovic said.Ĭriminals hacked the Vidovics’ Coinbase account using something called a “SIM swap."
The Vidovics lost nearly $170,000 in the blink of an eye when someone hacked their Coinbase account.Ĭoinbase claims on its website to have 43 million customers and describes itself as the “world’s most trusted crypto exchange.”īut the Vidovics say the company has inadequate fraud protection. “We were aware this was a riskier investment, but you don’t expect to wake up one morning and find that it’s completely gone,” Jared Vidovic said. She and her husband Jared, who is a VA nurse, started investing in cryptocurrency three years ago after hearing about the high rates of returns from friends. Probably two-and-a-half years of my salary is gone,” said Tampa Firefighter Tanja Vidovic.
“The money we were looking forward to after we retire is gone. "They think their money is safe and it’s not" And currently, there’s no easy way for victims to recover their funds. Cryptocurrency has become a red-hot investment, generating huge returns for people who bought in at the right time.īitcoin, Dogecoin and Ethereum are among the most popular currencies, with each Bitcoin valued at nearly $50,000.īut ABC Action News I-Team Investigator Adam Walser has uncovered cyber-criminals have found ways to drain people’s cryptocurrency accounts in the blink of an eye.