Binance CEO Changpeng Zhao in a Twitter post said that only 50 out of 7,000 users claiming to be employees of Binance on LinkedIn are real. This comes as LinkedIn becomes a new platform for crypto scammers to target job-seeking candidates.
Zhao criticised the lack of a real-ID authentication system on Linkedin, saying: “I wished LinkedIn had a feature to let the company verify people. So, many “hey, I am responsible for listing” scammers on LinkedIn. Be careful.”
In June, a report by the Federal Trade Commission (FTC) revealed that more than 46,000 people reported losing over $1 billion in cryptocurrency scams since the start of 2021. According to the FTC, nearly half the people who reported losing digital currencies in a scam said it started with an ad, post or a message on a social media platform.
An FBI agent was first to flag that crypto-scammers on LinkedIn are a “significant threat” to user safety. In an interview with CNBC, Sean Ragan, an FBI agent said that LinkedIn has a problem when it comes to investment scams and crypto scammers are luring candidates under the pretext of an investment scheme. “This type of fraudulent activity is significant,” Ragan told. “There are many potential victims, and there are many past and current victims.”
It is worth noting that crypto-related job postings with titles containing terms like “bitcoin,” “Ethereum,” “blockchain” and “cryptocurrency” grew 395 per cent in the US from 2020 to 2021, outpacing the wider tech industry — which saw a 98 per cent increase in listings during the same time period, according to a recent LinkedIn report.
While most of the job postings were in software and finance, other industries are also seeing a rise in demand for crypto talent. These include professional services like accounting and consulting, as well as the staffing and computer hardware sectors. The demand for crypto jobs has made job-seeking candidates an easy target.