Scammers are using sophisticated deepfake technology to target startup founders connected to Polygon Ventures. The attackers gained access to a Polygon Ventures investment team’s Telegram account, including Shreyansh Singh’s. They then contacted founders of projects that had previously interacted with Polygon, pretending to continue investment discussions.
How the Scam Worked
The scammers organized Zoom video calls that appeared to feature Sandeep Nailwal, Singh, and another team member. The calls used AI-generated faces but had no audio, with the attackers claiming technical issues. They then asked the victims to download a supposed development tool from a link in the chat. Unbeknownst to the victims, this installed malicious software on their systems.
Nailwal warned the Web3 community about this scam on social media. He emphasized that no one should install software or files during unsolicited calls. He also suggested using separate devices for cryptocurrency activities as an added security measure.
This incident isn’t isolated. Kenny Li, co-founder of Manta Network, reported a similar case weeks ago. Li believes the hackers might be linked to the Lazarus Group, a North Korea-linked criminal organization.
Targeting Early-Stage Projects
The scam specifically targets startup founders and early-stage projects in the Web3 ecosystem. These individuals are often open to investment proposals, making them vulnerable to communications that appear to come from Polygon Ventures. The attackers use previously compromised accounts and simulate real scenarios, adding a layer of sophistication that makes the fraud hard to detect.
To prevent such attacks, experts recommend:
- Never install software during unexpected calls without external validation.
- Verify the identity of callers through multiple channels.
- Use a separate device for cryptocurrency transactions.
- Watch for subtle signs like missing audio or robotic behavior in video calls.
While Polygon hasn’t issued an official statement beyond Nailwal’s warnings, this case highlights the urgent need for defense strategies against threats involving emerging technologies like generative AI.