Scammers are taking advantage of YouTube's comments section, sharing initial phrases to lure greedy individuals into the multi-signature wallet scam.

It appears that bad actors have found a new way to exploit cryptocurrency users by sharing seed phrases, tricking victims into trying to steal funds from a multi-signature wallet, only to fall victim to the scam themselves.

In a Blog post On December 23, the sanctioned Russian cybersecurity company, Kaspersky, exposed a scam after a suspension appeared under funding... YouTube video. The user shared his initial phrase and asked for help transferring funds from his wallet, which was quickly labeled as suspicious by experts.

Binance founder Changpeng Zhao said in a post

A seed phrase is a unique sequence of words needed to access a cryptocurrency wallet, and sharing it publicly can lead to theft. Kaspersky notes that the comment appeared to be from a newbie, and was followed by other similar comments, all “from newly created accounts.” These messages contain initial phrases and requests for assistance in transferring money.

In the scam, the thief who accesses the wallet will find that it is filled with Tether (USDT). However, to withdraw funds, the thief would need TRON (TRX).

“Unfortunately, the wallet doesn't hold enough TRX, so the thief attempts to transfer TRX from his personal wallet — only to discover that the tokens they immediately transferred ended up in a completely different third wallet.”

Kaspersky

The trick is to set up the multi-signature wallet, analysts say, adding that this type of wallet requires approval from multiple parties to allow transactions. As a result, even if the fraudster pays the necessary fees, he will not be able to steal the money.

Kaspersky warned that this scam is an example of how scammers can manipulate thieves, and encouraged users to avoid sharing seed phrases and remain wary of similar schemes. In June, the Biden administration Penalties imposed 12 senior leaders attacked Kaspersky Lab, citing cybersecurity risks, a day after announcing plans to ban the sale of the Russian company's antivirus software.