Cryptocurrency scams have come to YuTube, and it seems YouTube has failed to stop them.
Google's video-sharing platform recently became the target of criticism for failing to stop or prevent a network of cyber-criminals from streaming fake Elon Musk videos to scam viewers, according to the BBC.
The incident happened days after Musk called YouTube out for publishing "nonstop scam ads," according to Business Insider.
YouTube Fake Elon Musk Cryptocurrency LiveStreams Facts
YouTube allegedly became a haven for a network of cryptocurrency scammers and cyber criminals after they hijacked or hacked YouTube accounts and used fake videos of Elon Musk promoting bogus cryptocurrency giveaways to scam people of their cryptos and money.
According to the BBC, the live streams allegedly invite people to send cryptocurrency to a digital-wallet address to get a chance to receive a prize from Musk himself in the form of doubling the cryptocurrency they sent.
Viewers were then instructed to go to a website to find the digital wallet's address and send Bitcoin or Ethereum to the address specified, which belongs to the scammers.
The transaction history of the digital-wallet address showed that the scammers made $243,000 in over a week thanks to the fake ads, with 23 bitcoin transfers worth $234,000 and 18 Ethereum transfers which have an accumulated value of $9,000.
The catch is that the scammers have been operating this way since 2021. Using this method, they managed to earn $98 million last year and have accumulated $30 million this year so far.
The network of crypto scammers and cyber criminals managed to hack enough YouTube accounts to create dozens of live streams that feature the fake crypto ad, with them accumulating views over a four-day period in June. One of the live streams even became watched by around 22,000 people during its airing.
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They were able to hack these accounts by purchasing the info from previous data breaches online or by trying common passwords with known email addresses.
To stay one step ahead of Youtube and its viewers, the hackers change the name and picture of a handful of YouTube Channels to make them appear like official Tesla channels, the electric vehicle manufacturing company Musk owns.
One of the victims of this hacking is Chilean urban-music artist Aisack, whose YouTube Channel got hacked and hijacked in late May.
Aisack voiced his frustration about his YouTube account being hacked and hijacked to the BBC, saying that he feels "violated and insecure."
"The Hacking of my channel has hurt me a lot since I am a few days away from releasing a new music video, and now I am creating a second channel as a bak-up and re-uploading more than ten years of work on YouTube," Aisack said.
The musician also said that YouTube is not doing enough on security issues to prevent the hacking and hijacking of channels since other YouTubers are in the same situation as he is.
Elon Musk's Reaction
YouTube seems to be nonstop scam ads
— Elon Musk (@elonmusk) June 7, 2022
Aisack is not the only one who has frustrations with YouTube. Elon Musk has also called out Youtube on his official Twitter account for its failure to address the cryptocurrency scams on its platform, calling the site "nonstop scam ads."
Tesla's CEO even reacted positively to memes and criticisms that take a jab at YouTube's inability to address the scam advertisements, with him announcing he will be "putting a stop" to channels using the Tesla name "for solar and Powerwall."
Business Insider mentioned that a Google spokesperson said that its policy prohibits ads designed to "deceive or mislead users," adding that it has a range of ads policies designed to fight scams and other deceptive practices by "bad actors."
The spokesperson later revealed that Google blocked or removed 175 million ads across its platform for violating its misrepresentation and trademark policies.
