Podcast Summary: Click Here - Episode 175. Mic Drop: Kraken CSO Nick Percoco’s Unusual Anti-Scamming Campaign
Introduction
In Episode 175 of Click Here, titled "Mic Drop: Kraken CSO Nick Percoco’s Unusual Anti-Scamming Campaign," host Dina Temple-Raston delves into the innovative collaboration between Kraken’s Chief Security Officer, Nick Prococo, and popular scam baiter KitBoga. Released on October 18, 2024, this episode explores how this duo is combating cryptocurrency scams through unconventional methods that not only frustrate scammers but also educate the public.
Scam Baiting with KitBoga
The episode opens with Dina introducing KitBoga, a YouTube personality renowned for his scam baiting tactics. KitBoga engages scammers by pretending to be potential victims, often wasting their time and infuriating them to the point where they abandon their fraudulent schemes.
- Dina Temple-Raston [00:04]: “If you spend enough time on YouTube, you may have run across this character who goes by the name Kidboga. Scammers hate him.”
- KitBoga [00:12]: “This scammer thinks I'm about to send him $455,000 worth of Bitcoin, but I typed the wrong wallet address.”
KitBoga’s strategy involves playful yet strategic interactions that disrupt scammers' operations. For instance, when scammers believe they are about to receive a substantial Bitcoin transfer, KitBoga intentionally provides incorrect information, such as wrong wallet addresses, leading to confusion and frustration.
- KitBoga [00:41]: “So if you kind of suck your thumb for a second, like a. Kind of like a baby, I'll transfer the money right away.”
- Dina Temple-Raston [00:47]: “Are you kidding me? He gets scammers so upset, they sometimes just give up on the scam altogether. Don't send it. No, don't send it.”
This method, known as scam baiting, not only thwarts the scammers but also provides viewers with entertaining content that raises awareness about common scam tactics.
Collaboration with Kraken’s Nick Prococo
Kraken’s CSO, Nick Prococo, joins forces with KitBoga to bolster their anti-scam efforts. Their collaboration began approximately a year prior to the episode's release, combining Kraken’s security expertise with KitBoga’s scam baiting prowess.
- Nick Prococo [01:29]: “We got together with him, I think, about a year ago or so, and started to help him in his. In his pursuits.”
Their joint efforts aim to disrupt scammers by engaging them actively, thereby reducing the time scammers can spend targeting potential victims.
Kraken’s Security Initiatives
Founded in 2013, Kraken has been at the forefront of cryptocurrency exchange, especially during a time when digital currencies were often associated with illicit activities. In response to the challenges faced by the industry, including the collapse of Mount Gox in 2014—which resulted in the loss of 750,000 customer bitcoins and 100,000 company bitcoins—Kraken has developed robust security measures to protect its users.
- Dina Temple-Raston [03:12]: “Nick Prococo's day job is to oversee security operations at Kraken, the crypto exchange. When the company launched in 2013, cryptocurrency was seen as pretty sketchy...”
Kraken's security tools are designed to identify and prevent fraudulent activities, particularly targeting investment scams that prey on vulnerable populations like retirees.
- Nick Prococo [04:19]: “We can help identify higher likelihood instances of someone either being scammed or maybe it's, maybe it's a fraudster trying to create an account with someone else's identities...”
Focus on Protecting Retirees
Nick highlights the alarming trend of retirees being primary targets for crypto scams, given their substantial savings and the allure of sustaining their livelihoods through investments.
- Nick Prococo [04:48]: “They may have a nest egg of, you know, a couple hundred thousand, even up to maybe $1 million...”
The FBI's 2023 cryptocurrency fraud report underscores this vulnerability, with over 16,000 complaints from individuals over 60, resulting in losses totaling approximately $1.6 billion.
- Dina Temple-Raston [05:17]: “In a recent cryptocurrency fraud report, the FBI says it got more than 16,000 crypto fraud complaints from people over 60 in 2023 alone...”
Educational Efforts and Public Awareness
Education plays a pivotal role in Kraken and KitBoga’s strategy to combat scams. By enlightening potential victims about the red flags of fraudulent schemes, they aim to empower individuals to recognize and avoid falling prey to scams.
- Nick Prococo [05:52]: “If someone's then more aware, then maybe a red flag can go off in the victim's mind...”
To further these educational goals, Nick makes appearances on KitBoga’s YouTube channel, where he portrays a comically inept Kraken customer support representative to both entertain and inform the audience about crypto security.
- Nick Prococo [06:05]: “I must be in, like, the Three Stooges.”
- Nick Prococo [06:16]: “Certainly, like, keep making mistakes and tripping on each other.”
These segments serve dual purposes: distracting scammers and teaching viewers about secure cryptocurrency practices in an engaging format.
Kraken’s Honeypot Initiative
An innovative addition to their anti-scam campaign is Kraken’s deployment of a clone website designed as a honeypot. This fake site lures scammers by presenting itself as a legitimate Kraken platform. Once scammers engage with the site, they inadvertently expose their identities and methods, providing Kraken and authorities with valuable intelligence.
- KitBoga [07:37]: “I've been working with Kraken offline for probably six months now, and their engineering and fraud team put together one of...”
- Nick Prococo [07:44]: “They're at this, like, payday phase where that scammer thinks they're going to get the million dollars in bitcoin from this, from this elderly person, for example.”
This tactic not only frustrates the scammers but also aids in their identification and eventual apprehension.
- Nick Prococo [08:10]: “We actually had a case where the criminal did everything we hoped he was going to do...”
Impact and Reach
Kraken’s collaboration with KitBoga has yielded significant results, both in terms of reducing the scammers’ operational capacity and raising public awareness through the duo’s extensive online presence. KitBoga’s combined following of nearly five million across YouTube and Twitch ensures that their anti-scam messages reach a broad audience.
- Nick Prococo [06:48]: “That's hundreds of hours that they're not spending on some other victim.”
- Nick Prococo [06:57]: “The purpose is to expose these scammers for what they're doing and bring awareness to that.”
Conclusion
Episode 175 of Click Here effectively showcases the inventive approaches taken by Kraken’s Nick Prococo and KitBoga to fight cryptocurrency scams. Through scam baiting, educational content, and technical innovations like honeypot websites, they are making significant strides in protecting vulnerable populations and disrupting malicious activities in the digital financial landscape. Their combined efforts not only frustrate scammers but also serve as a model for how collaboration between cybersecurity experts and online influencers can create impactful change.
Notable Quotes
- Dina Temple-Raston [00:47]: “Are you kidding me? He gets scammers so upset, they sometimes just give up on the scam altogether.”
- Nick Prococo [05:52]: “If someone's then more aware, then maybe a red flag can go off in the victim's mind.”
- KitBoga [07:37]: “I've been working with Kraken offline for probably six months now...”
Additional Resources
For listeners interested in continuous updates on cybersecurity news and policy, Click Here recommends subscribing to the Cyber Daily from Recorded Future News. This daily guide compiles the most significant cyber stories, ensuring that subscribers stay informed about the ever-evolving landscape of cybersecurity.
- Zoe Schiffer [09:27]: “If you're looking for a daily guide to cybersecurity news and policy, sign up for the Cyber Daily from Recorded Future News...”
This summary was crafted to provide a comprehensive overview of the podcast episode for those who haven't listened, highlighting key discussions, insights, and the collaborative efforts to combat cybercrime in the cryptocurrency sphere.