Fake Online Gaming Websites

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Crypto scams on gaming sites: Crypto fraud is the primary purpose of more than 1,200 websites masquerading as slick online games.
Online ad promotion: Discord and other social media networks promote ads for these online betting game sites.
How it works: These sites request a deposit to withdraw purported winnings, which do not actually exist, in order to steal funds from users.

An alarming surge in online gaming scams targeting cryptocurrency users has been observed, as fraudsters leverage polished gambling game websites to lure victims and steal cryptocurrency deposits through deceitful practices.
Sophisticated Tactics Deployed

A recent KrebsOnSecurity report has revealed that the scam typically starts with highly convincing advertisements distributed across social media platforms such as Discord, which prominently claim affiliations or partnerships with well-known personalities, most notably Mr. Beast.

Scammers frequently appropriate the Mr. Beast brand, referencing the Internet personality’s new gaming business, Beast Games, and presenting the sites as legitimate collaborations.
Discord channel ad for a scam gambling website that claims a fake collaboration with Mr. Beast
Discord channel ad for a scam gambling website that claims a fake collaboration with Mr. Beast | Source: KrebsOnSecurity via Reddit

These ads use the name and likeness to establish instant trust and credibility, enticing users to register with the promise of exclusive promotional credits, often highlighted as $2,500 in free gambling funds.
Scam website page showing purported error when users try to withdraw the false winnings
Scam website page showing purported error when users try to withdraw the false winnings | Source: KrebsOnSecurity

Once registered, victims are prompted to bet on each action performed in a hosted online game. However, cashing out the fake winnings triggers a fabricated "verification deposit" requirement, where victims are forced to deposit typically around $100 in cryptocurrency. Additional hidden payment demands soon follow, ensuring victims never see their money again.

Over 1,200 scam domains that may be connected through the same infrastructure, as similar fake gaming sites use the same chatbot API.
Impact on Victims

This wave of cryptocurrency fraud specifically targets both individual users and broader online communities. Complicating matters, victims often face further exploitation from self-proclaimed "recovery experts," promising to retrieve stolen funds but delivering nothing in return.
Warnings and Recommendations

The KrebsOnSecurity report underscores the heightened sophistication of these scams. Users are urged to exercise caution by avoiding unsolicited advertisements or suspicious gaming sites and verifying platforms independently before engaging.