Scams involving memecoins cost cryptocurrency investors more than $500 million U.S. during 2024, according to a new report from crypto intelligence firm Merkle Science.
The most prolific scams involved social engineering, which is a technique that relies on impersonation and manipulation to gain access to someone's personal data.
One such incident involved scammers using a fake social media account of French soccer star Kylian Mbappe who was allegedly promoting a memecoin.
Not only did the fake account convince people to invest money in the non-existent memecoin, it also enabled the scammers to gain access to people’s personal information and bank accounts.
There was also a case involving music artist Wiz Khalifa that targeted his 35.7 million social media followers.
A fake WIZ token was promoted, rising to a $3.4 million U.S. market capitalization before being rug pulled and plummeting to zero.
Merkle Science said: “Hackers are no longer just breaching wallets or exchanges; they’re hijacking the credibility of celebrities and industry leaders to manipulate markets in real time.”
Merkle's report reveals that 75% of all attacks took place on social media platform X, formerly Twitter, and 19% on YouTube.
The two main types of scams targeting crypto investors involved rug pulls and phishing attacks, according to Merkle Science.
Many memecoins have risen sharply over the past year amid an ongoing rally in cryptocurrencies.
