Hackers infiltrated the social media accounts of Robinhood, a popular US online trading platform, to sell coins. The fake token is called RBH on Binance Smart Chain.
On Wednesday, the account released a tweet announcing the debut of the suspicious coin on BSC, with a starting price of $0.005. Analysis of these tokens shows that creator information and tokenomics are missing.
Other social media profiles of Robinhood they are also targeted. According to BSC analysis provided by internet inspector ZackXBT, fraudsters managed to extract around $8,200 worth of BNB tokens.
Robinhood was allegedly hacked pic.twitter.com/UgRD3UCbo9
– db (@tier10k) January 25, 2023
After the incident, Binance CEO Changpeng Zhao announced on Twitter that the account has been suspended. The tweet no longer appears on Robinhood’s account at the time of writing.
Hackers Believed To Be ‘Third Party Vendors’
According to Robinhood representatives, hackers have also posted on the platform’s Instagram and Facebook accounts.
Robinhood admits:
“We are aware of unauthorized posts from Robinhood’s Twitter, Instagram, and Facebook profiles, all of which were deleted within minutes.”
The trading platform added that, based on its current investigation, it suspects a third-party vendor is responsible for the breach.
Conor Grogan, director of product business development at cryptocurrency exchange Coinbase, revealed that about 10 people had bought about $1,000 worth of RBH fake coins before this tweet was taken down.
Cryptocurrency RBH is offered by the hacker for $0.0005 per unit, based on the hacker’s claim. Obviously, the Chain-based coin BNB is nothing more than a “honeypot” scam.
Image: Cybernews
What is a Honeypot?
“Honeypot” is a word often used by cyber security specialists. In other words, it is a euphemism for something that is intended to persuade people; just put it, it’s a trap.
In its most technical form, a honeypot is a computer system designed to attract cyber attacks, like bait. It impersonates targets for hackers and uses infiltration attempts to learn about infiltrators and their methods of operation, or to divert them from other targets.
It appears that Robinhood’s account was hacked and is promoting coins on the BNB Chain. Always think critically even if the account is apparent or real. https://t.co/XSwHIVdEdw
— CZ 🔶 Binance (@cz_binance) January 25, 2023
As a result, and in this case, after an unsuspecting customer buys RBH tokens, the owner cannot sell or transfer them.
CZ notes the breach and encourages the community to exercise caution and common sense when acquiring tokens, even if they appear to be genuine.
Crypto total market cap at $1 trillion on the daily chart | Chart: TradingView.com
Twitter Hackers Target Millionaires
On July 15, 2020, hackers easily penetrated Twitter’s defense perimeter. They impersonate Elon Musk, Bill Gates, and Warren Buffet, among others.
Former US President Barack Obama and Vice President Joe Biden also had compromised accounts.
Cybersecurity Ventures expects that the cost of cybercrime worldwide will increase by 15% annually over the next five years, surpassing $10 trillion annually by 2025, up from $3 trillion in 2015.
Image selection from Malwarebytes