Crypto Scammers Exploit Israel-Hamas Conflict, Posing As Charities

Crypto scammers and malicious actors are exploiting the Israel-Hamas conflict, posing as charities to deceive unsuspecting victims into giving away their funds, as revealed in a new report by Bleeping Computer.

Malicious actors have previously attempted crypto donation scams during crises such as the Russia-Ukraine war and the devastating earthquake in Turkey.

These scammers employ manipulative tactics, including using graphic images of wounded soldiers, women, and especially children, to evoke sympathy and persuade victims to donate.

According to the report, multiple accounts on various social media platforms, including X, Instagram, and Telegram, have emerged, urging people to make humanitarian donations for the victims of the ongoing Middle East crisis.

These alleged fraudulent accounts, featuring dubious crypto wallet addresses, are reportedly unaffiliated with any official charities and are believed to be scams.

One such account, named Gaza Relief Aid, surfaced on X on Oct. 15, using the aidgaza.xyz domain. Despite claiming to be an Islamic Relief Initiative, this fundraising activity lacks support from recognized organizations.

The report noted instances where third parties claimed to have donated funds, with the recipients confirming receipt, but wallet history suggested otherwise. This tactic is likely used by suspicious accounts to enhance their credibility.

"Some social media posts showed a third party stating that they'd donated the funds, and the person seeking donations confirming having received them, but wallet history indicated otherwise. This is very likely a tactic employed by suspicious accounts to lend more credibility to their operations," the report said.

Another fundraising campaign for Israel, called "Donate for Israel," was identified. However, similar to Gaza Relief Aid, the report cast doubts on its authenticity due to the associated crypto wallet address (0x4aC1Ea2e36fE3ab844E408DF30Ce45C8B985d8cd) showing zero transactions and limited data linked to the X account.

In addition to circulating posts on various social media platforms, crypto scammers also exploit emails to target victims, as reported by cybersecurity firm Kaspersky.

The report revealed that over 500 scam emails, containing questionable websites, were crafted to take advantage of people's willingness to assist those affected by the Israel-Hamas conflict.

These fraudulent emails, written in English, request donations for individuals impacted on both sides of the conflict.

Kaspersky security expert Andrey Kovtun explained that scammers attempt to evade spam filters by creating multiple text variations. For example, they use various call-to-donate phrases like ''we call to your compassion and benevolence'' or ''we call to your empathy and generosity.'' Additionally, they substitute words like ''help'' with synonyms such as ''support,'' ''aid,'' etc., and alter links and sender addresses.

Before donating funds, it is crucial to verify the legitimacy of the organization making the request.

Legitimate charities provide transparent details about their organization and the utilization of donated funds.

U.S. Federal Trade Commission (FTC) senior attorney Larissa Bungo advised in a blog post, "Research the organization — especially if the donation request comes via social media. Search the name along with ''complaint,'' ''review,'' ''rating,'' or ''scam.'' Additionally, check the charity's credibility with organizations like the Better Business Bureau's (BBB) Wise Giving Alliance, Charity Navigator, Charity Watch or Candid.

''If the message originated from a friend, inquire if they are familiar with the organization. Determine the percentage of every dollar donated that directly benefits the charity's beneficiaries."