This type of scam attracts users by posting ads on social media that claim to teach you how to make thousands of dollars a day using front-running bots.
When clicked, these ads link users to a YouTube video showing how to create and deploy a front-running script to generate “profits”.
This was revealed in a report from CertiK. After analyzing YouTube videos that mentioned the phrase “front-running bot,” the blockchain security company observed that out of 232 sample videos, 84% were fraudulent.
The victims were lured into a downloaded fake bot designed to steal funds when they tried to initiate a front-running transaction.
In 2021, Certick detected 28 scam videos. This year, the number spiked to 168, a 500% increase.
The report states that some videos can be clearly identified as scams just from their titles, with the general theme being – “free code and huge returns.”
The suspicious videos appear to attract significant community engagement. Upon further investigation, Certik discovered that these were mostly bot-generated responses to increase the legitimacy and credibility of the videos.
“There may be some genuine comments buried at the bottom of these videos, but you can bet that they won’t be saying the strategy really works. One way to identify comments that likely came from bots is to check the video age and the comment age. Often, there’ll be a flood of comments right after the video was posted, which is characteristic of inauthentic engagement.”
Although some reports suggested that crypto scams may have decreased along with the price whole market, malicious entities continue to develop sophisticatedly to steal funds.
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