AnChain.AI, the Blockchain Security Firm reports that the thieves swindled $2 million in cryptocurrency by appearing to sell face masks, medication and hand sanitizer following the Coronavirus outbreak. 

Don’t fall for it, Verify before buying medical supplies online 

The firm notes that the scammers misused the panicking of customers and leveraged the situation. They posted to sell pandemic essentials and once money were paid by consumers, essentials were never delivered. While on one hand, COVID-19 has shaken the entire world, on the other hand, low budget malicious actors are leveraging the benefit from the unprecedented demand for pandemic essentials. Echoing the concern, INTERPOL Secretary General Jurgen Stock during a coronavirus consumer fraud notice from Europe’s police force said:

“Criminals are exploiting the fear and uncertainty created by COVID-19 to prey on innocent citizens who are only looking to protect their health and that of their loved ones,”

However, AnChain’s marketing director Steven Yang added that some of these frauds are involved in cryptocurrency. However, the firm’s CEO Victor Fang reportedly paid for 100-pack of surgical masks in February, however he has not received the order yet. Adding to it, Yang told:

“Our CEO actually ordered some face masks off of Amazon and had this done to him,” 

It came to the notice of AnChain that the purported suppliers posted their product details over trusted e-commerce sites including eBay, Amazon and other social media marketplaces. These suppliers then offer a phony shipping label as part of proof to consumers as soon as they place an order and make payment. 

However, buyers either end up realizing that they have been fallen into scam or the worst case, they end up receiving an empty box, said Yang from AnChain. As these members already paid for the products, the firm notes that around 90 percent of crypto scam cases are associated with USDT whereas 5 percent excited in bitcoin and 2 percent in ether. Other cryptocurrencies involved in scam cases are counted in ‘small amounts’. Yang went on to explain, 

“They launder the money through a large number of jumping and pass-through addresses, or using things like tumblers and mixers, before liquidating through exchanges,”

Despite the bleeding market, the reported notes that the ongoing investigation highlights these scams are observed worldwide.