GALA Scam Attempts to Drain Victims' Crypto
While examining spam emails, we came across one promoting a counterfeit "GALA" website (aloor[.]net). This fraudulent site mimics the authentic Gala Games blockchain gaming platform (gala.com). When users attempt to link their digital wallets to the deceptive website, it initiates scripts to operate as a cryptocurrency drain.
According to the Federal Trade Commission (FTC), since the beginning of 2021, over $1 billion in cryptocurrency has been reported lost to scams by more than 46,000 individuals. This amounts to approximately one-fourth of all reported losses, surpassing losses associated with any other payment method.
The bogus website (aloor[.]net) imitates the official Gala Games blockchain platform, which offers play-to-earn gaming, rewarding players with NFTs (Non-Fungible Tokens) and cryptocurrencies for in-game achievements.
The fraudulent scheme replicates Gala Games' visual design. However, it's important to note that this scam could be hosted on domains other than aloor[.]net. It should be emphasized that this fraudulent activity is not affiliated with Gala Games or any other legitimate platforms or entities.
Once a cryptocurrency wallet is "connected" to the deceptive page, it activates a draining mechanism. Victims' digital assets are transferred via automated transactions to wallets owned by scammers. These transactions may appear inconspicuous and not immediately raise suspicion. Some draining mechanisms can estimate the value of assets and target them accordingly.
Why Are Crypto Drainer Scams so Common in Recent Months?
Crypto drainer scams have become increasingly common in recent months due to several factors:
Rising Popularity of Cryptocurrency: The growing popularity of cryptocurrency has made it a lucrative target for scammers. With more people investing in and using cryptocurrency, there's a larger pool of potential victims for these scams.
Lack of Regulation: The cryptocurrency market is largely unregulated compared to traditional financial markets. This lack of regulation makes it easier for scammers to operate without fear of legal consequences, leading to an increase in crypto-related scams.
Complexity of Blockchain Technology: While blockchain technology offers many benefits, its complexity can also be exploited by scammers. Many people are still unfamiliar with how blockchain works, making them more susceptible to scams that exploit technical nuances.
Anonymity of Cryptocurrency Transactions: Cryptocurrency transactions are often pseudonymous, meaning that they can be difficult to trace back to their origin. This anonymity makes it easier for scammers to carry out fraudulent activities without being detected.
High Financial Incentives for Scammers: Cryptocurrency scams can be highly profitable for scammers due to the potentially large sums of money involved. This financial incentive motivates scammers to develop increasingly sophisticated tactics to defraud victims.
Lack of Awareness and Education: Many people are still unaware of the various types of cryptocurrency scams and how to recognize them. A lack of education and awareness about crypto-related risks leaves individuals more vulnerable to falling victim to these scams.
Ease of Creating Fake Websites and Platforms: With the proliferation of online tools and platforms, it has become relatively easy for scammers to create fake websites and platforms that mimic legitimate cryptocurrency projects. These fake sites can deceive users into unknowingly providing access to their digital assets.
