Kraken Builds Fake Crypto Account To Catch Fraudsters

Kraken Builds Fake Crypto Account To Catch Fraudsters

Kraken, a cryptocurrency exchange, has recently implemented a new tactic to catch fraudsters in the act. The company has created a fake cryptocurrency account and made it available to scammers looking to steal money from unsuspecting victims. This move is part of Kraken’s efforts to crack down on fraud within the crypto community.

The Experiment

Kraken created a fake account with a lot of Bitcoin and left it exposed to hackers and scammers, making it an easy target. The account seemed genuine. The company then monitored the account to see who would try to steal the cryptocurrency.

Kraken’s fake account experiment had a different outcome than what was seen in a recent call-center scam. In the call-center scam, the impersonator of President Joe Biden attempted to steal what they thought was $450,000 worth of Bitcoin from a streamer, and instead, chaos ensued. 

Nick Percoco, Kraken’s head of security, said the experiment was successful and that the company identified the scammers and took action. He added that Kraken is always searching for methods to improve its security.

This project was not aimed to catch scammers but to understand their methods. By understanding these tactics, Kraken can develop better security measures to prevent fraud.