Twitter accounts pretending to be legitimate cryptocurrency companies and developers are tricking unsuspecting users into handing over cash.
What these fraudsters are doing is simple – telling optimistic would-be investors that they can multiply the original amount and then put the amount back in their account. However, the trustworthy appearance of these accounts is just a facade.
CoinDesk has collected various victims of this scam, which include one user (@SatoshiLitev) pretending to be litcoin creator Charlie Lee and promising the first 60 donaters four litecoins.
The matter is a blow to the reputation of cryptocurrency in general, with newcomers the most likely to be cheated out of their money. Twitter has since suspended some of these accounts, but many are calling for something more systematic be done.