Bitmain customers have been subjected to a targeted phone scam selling 'S11' Mining systems

Bitmain customers have been subjected to a targeted phone scam selling ‘S11' Mining systems

Customers of Bitmain have been hit by a targeted phone scam which involved the sale of fictitious ‘S11' mining systems. This scam has resulted in a number of users being subject to fraud and monetary theft.

Bitmain has since made announced that it has been made aware of the on-going situation with users, urging users to exercise increased caution to any suspicious messages they receive from users claiming to be working for Bitmain.

Bitmain's Twitter account was also subject to a scam last week; with the account being hijacked to include the offer of a free giveaway of Bitcoin and Ethereum. This and the ‘S11' scam were in order to extort cryptocurrencies from unwitting users.

While these scams are often easy to spot compared to legitimate giveaways. The frequency and rate in which these scams exist amongst the cryptocurrency world demonstrate that it still has an endemic problem with scams.

This recent phone scam suggests sophisticated and targetted attacks, however, as the scammers aimed directly at active users of Bitmain (read about them expanding into USA). Which requires access to Bitmain's systems in order to obtain access to their existing member's contact information.

Despite concerns to this effect, Bitmain has yet to confirm or deny these concerns. What they have confirmed is the way in which the scammers initiated the attack.

“Someone has been calling Bitmain customers. The phone number appears to be our customer service number in China. The caller claims to be offering an S11 miner.”

The company then proceeds to state that the ‘S11' mining system doesn't exist, nor will they ever directly approach consumers via phone. But consumers were lulled into a false sense of security due to the similarity of the phone number used to contact them.

The prevalence of scams and cybercrime against cryptocurrency users as individuals, companies and coin exchanges have increased significantly over the years. With Cryptojacking and phone scams becoming increasingly common.

Much unlike cryptojacking, phone scams are the more unusual and unorthodox approach. In March, four men were charged with fraud as they called cryptocurrency users, offering to increase users initial bitcoin payment through what it called ‘Online Chain referral'.

This extortion method includes callers masquerading as government officials demanding tax payments in cryptocurrency. Even recently, Global News Canada reported of individuals calling cryptocurrency holders, demanding Bitcoin otherwise their housing utilities like electricity or water would be cut off immediately.

Taking a skeptical approach towards any opportunities you are presented with which involve cryptocurrencies, both online and on the phone, is one of the best methods to take against con artists.

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Read more about the Bitmain controversy with Zcash here:

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