November 17, 2017. Jibrel Network — the decentralized protocol for storing and transacting conventional monetary belongings on the Ethereum blockchain — started the public sale of its Jibrel Network Token (JNT).

And, as with many ICOs and token technology occasions, it garnered a number of consideration — not all of it the nice form, on this case.

Earlier that month, Jibrel introduced that it was going to guard its belongings with Hacken. Hacken is a tokenized market that gives entry to white hat, moral hackers. It seems that this was fairly the prophetic transfer.

“Ten minutes earlier than the token sale began, 4 phishing websites appeared,” Talal Tabbaa, cofounder at Jibrel Network, informed VentureBeat. “These have been both actual replicas or slight variations on our personal web site, with comparable URLs.”

Each of those websites featured an Ethereum deal with that was owned by the scammers. Their hope? That unwitting traders would purchase what they thought have been JNT tokens, permitting them to make off with the funds and take that funding away from Jibrel.

There have been just a few issues the scammers didn’t depend on, nonetheless.

“Six months in the past, you’d have most likely simply invested,” Tabbaa stated. “Now, fortunately, traders are smarter. In addition, we’re utilizing and complying with ‘know your buyer’ checks (KYC), which helps to make sure fraud is stored at a minimal.”

KYC is the method whereby a enterprise identifies and verifies the id of its purchasers, and it’s used around the globe as an anti-fraud mechanism and in anti-money laundering schemes.

The different factor the scammers didn’t depend on was how shortly Hacken would spring into motion.

“It took Hacken solely six minutes to take down the primary faux web site,” Tabbaa stated. “The response from the Hacken crew was unimaginable, really. It created a Telegram group that comprised six crew members, who coordinated their actions and stored us updated each 5 minutes.”

Within three hours, the entire faux web sites had been taken down.

So, how did Jibrel discover out concerning the phishing rip-off within the first place?

“Actually, my girlfriend known as me,” Tabbaa stated. “She informed me that she’d discovered some unusual websites by way of a Google search, and requested me if I used to be conscious of them.”

In reality, the scammers have been pushing the phishing websites to these trying to find Jibrel’s occasion by way of Google AdWords. And that wasn’t the one place the scammers had made an funding within the phishing marketing campaign.

“I used Etherscan to examine the Ethereum addresses connected to the faux websites,” Tabbaa stated. “It confirmed that one deal with had a stability of 80 Ether already, so I used to be fearful we’d already misplaced out on potential investments. Then I spotted that the Ether was put there by the creator to make it look as if it was energetic and had already acquired funds.”

The whole occasion has had an impression on Tabbaa.

“Imagine spending a yr preparing in your ICO occasion, solely to have scammers attempt to break the whole lot,” Tabbaa stated. “The response from Hacken — particularly the response time — was wonderful and actually helped to place our minds comfortable. In reality, I’ve now personally invested within the Hacken undertaking — they have been that good.”

With the thrill that appears to comply with each blockchain and cryptocurrency undertaking proper now, blockchain startups (and crypto-rich people) are being focused each day by scammers making an attempt to divert or steal Ethereum, Bitcoin, Litecoin, and extra. In addition to utilizing Hacken to guard in opposition to phishing assaults and carry out web site audits, Jibrel is utilizing Cloudflare for defense in opposition to DDoS assaults.

The assaults received’t cease anytime quickly, however as traders turn into smarter and higher in a position to spot purple flags — and with options like Hacken that make moral hackers out there to deal with antagonistic conditions — perhaps the blockchain universe will proceed to prevail in opposition to phishing scams such because the one Jibrel needed to cope with.

This article sources data from VentureBeat