Hacker Buys Luxury Cars Through Stolen Cryptocurrencies

Aug 23, 2018 at 14:00 Update Date :Aug 23, 2018 at 14:00 UTC

As per the latest announcements, a recent scam case comes up in California, Police Authorities arrest a crypto hacker. The officials inform, that the accused had been stealing crypto tokens by hijacking phone numbers.

Xzavyer Narvaez, a 19-year-old, has been held accountable for, as many as seven different scams. Motherboard reports, the cases include computer crimes, identity fraud, and grand theft.

The youngster seemed to be a lover of luxury cars. Therefore, he reportedly spent a part of his digital earnings on purchasing the likes of it.

The law enforcement officers came across a 2018 McLaren, which was found to be one of Narvaez’s possessions. According to his DMV records, the purchase was partly made by trading-in a 2012 Audi R8 and the rest through stolen Bitcoin.

In accordance with a court document, Narvaez’s BitPay (Bitcoin payment provider) and Bittrex (cryptocurrency exchange) account clearly show a flow of 156 Bitcoins, that were worth, approximately, $1 million, as discovered by the investigators.

Narvaez’s case comes out as a lead to the ongoing ‘scam case’ of Joel Ortiz. As per the allegations, Ortiz was arrested for stealing digital coins by hijacking victims’ phone numbers.

Narvaez entered into the picture, when the detectives came across the fact, that a cell phone that belonged to Ortiz, made a login into his Gmail account, at some point of time.

‘SIM swapping’ or ‘Hijacking Phone Numbers’ is a method to transfer the phone number owned by the target to the hacker’s SIM card. The process, also known as ‘port out scam’, requires involvement on the part of the telecom provider. Once the hacker gets the contact number transferred, he has open access to the victim’s accounts, including email accounts and crypto accounts. He can easily reset the passwords or put it to use for any kind of wrongdoing.

Fraudsters deploy different strategies to perform the hijack. Some install their “plugs” within the telecom providers. Plugs are nothing, but the employees who furnish help (carry out illicit swap) to the attackers and get paid by the company, at the same time. While others, social engineer the customer service (agents of telecoms providers), into believing that they, themselves are being targeted.

However, with the passage of time, hackers are coming up with new methods of stealing digital tokens, which causes a negative impact on the minds of crypto investors, one way or the other.

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