Mark Tencaten - Hackers promote fake Robinhood cryptocurrency on Twitter

Hackers advertised fraud tokens on the social media pages of online stock and cryptocurrency broker Robinhood. A now-deleted post was utilized by scammers to advertise a reportedly brand-new Robinhood token. They gave supporters of Robinhood a chance to purchase its RBH token for an introductory price of $0.0005 and be among the first to do so.

Sources claim that the hackers stole 26.95 Binance Coin (BNB) tokens valued at about $8,200. People who purchased the token afterward discovered they could not transfer or sell it, which means that their investment is now probably lost. The CEO of Binance shared on social media that the wallet gained from the fraud, which was hosted on the well-known cryptocurrency exchange, was frozen.

The illegal tweets on Robinhood's Twitter, Instagram, and Facebook profiles "were all removed within minutes," the company said in a statement. Robinhood is looking into them. While the scam only succeeded in duping a small number of people. Mark Tencaten emphasizes the risk of purchasing cryptocurrency based solely on social media posts.

Cybercriminals managed to breach Twitter security on 15 July 2020. Other than former US President Barack Obama and President Joe Biden (then Vice President), they also used the aliases of Apple, Elon Musk, Uber, Bill Gates, Warren Buffet, and Kanye West. Federal investigators claimed that 117,000 dollars in Bitcoin currency were obtained through a Bitcoin fraud that was promoted by the compromised accounts. The offenders were apprehended by US and UK law enforcement officials, who were then given three years sentence in federal prison.

Unfortunately, there is little regulation to protect investors in the cryptocurrency realm, which is riddled with scams. Between January 2021 and the end of March 2022, cryptocurrency scammers stole over $1 billion in assets, according to the FTC.

One of the many ways thieves defraud investors is with fake tokens that guarantee an opportunity to get in first. Even if it appears to come from a reliable source, Mark Tencaten advises readers to refrain from believing cryptocurrency or other investment-related information they receive on social media. Accounts are susceptible to hacking, and con artists may impersonate well-known figures to deceive supporters.

Additionally, Mark Tencaten advises investors to conduct research continually before making a purchase. In the instance of the bogus Robinhood token, a glance at the business's website would reveal that it has no plans to introduce its own cryptocurrency. Additionally, be aware that there is a greater danger if a token is exclusively accessible through a decentralized exchange like PancakeSwap, like RBH was. Top cryptocurrency exchanges go through a verification process even though they may not always support the coins they list.

MarkTencaten offers other warning signs to look out for when purchasing a new cryptocurrency. Verify the management team's reputation, look over the whitepaper, and think about the project's usefulness. Being cautious is necessary if the project's leadership is unidentified or inexperienced. Don't buy something right away if it doesn't have a site or whitepaper.

Investments in cryptocurrencies are already dangerous due to the high volatility and uncertainty surrounding the industry's future. Mark Tencaten has frequently advised that one method to reduce that risk is to only invest money that you can afford to lose. Another is to use caution when selecting the platforms you utilize and the coins you purchase.