Dogecoin’s official Twitter handle has warned users of fraudsters stealing personal details by impersonating tech support service providers of the meme coin.
These scammers pretend to connect with those having “difficulties, complaints, or issues” and trick victims into creating a fraudulent wallet that asks them to enter their seed phrase.
The Dogecoin account stated that it would never ask users to set up a Trust wallet or their seed phrases or account information.
The scam account existed much before Dogecoin was launched. Since gaining massive popularity in 2021, there’s been a steady stream of Dogecoin knock-offs that ended up being worthless scams.
Previously reported by TronWeekly, the latest of the coin’s long-list of infamous impersonators, Teddy Doge turned out to be a rug pull, blockchain security firm PeckShield uncovered.
In another recent report, the DOGE community unearthed a new scam after spotting a large number of suspicious transactions on the memecoin’s network.
Dogecoin Supporters Dig Up A New Scam
A discovery made by one Dogecoin fan revealed that the mysterious transactions were automated and very small. The said fan shared a list of the many addresses involved in the transactions.
“A large number of small transactions worth 0.0207 Doge were executed on a daily basis supposedly to hide the true nature of the business and the movement of money.”
Notably, the reported scam was devised and marketed as an investment opportunity for Dogecoin holders. But what caught the eyes of the sharp-sighted crypto fans was the unusually high-interest rates offered as a return on investment that helped exposed the scheme.
Not only that, the DOGE advocates even uncovered the culprit behind the scam which goes by the name of Huilo Invest. Supposedly the firm claimed to be of London, UK, origin but relentless online sleuths have connected the dots and found out that it’s actually based in China.
A more detailed inspection of its operations showed that at one point, Huilo Invest had accumulated funds worth nearly $600k – likely robbed from unsuspecting crypto holders with a false promise of offering between 7% and 10% return on investment within a day.
