Scam Notification Promises Triple Returns to Betterment Users

Users of Betterment reported receiving a suspicious notification on Friday, urging them to send large sums of cryptocurrency in exchange for guaranteed returns. This message sparked confusion and concern on social media platforms.

Key Takeaways

Betterment users were targeted by a deceptive message promising to triple crypto deposits, utilizing urgency and unrealistic guarantees.
The company verified that the notification was unauthorized, sent through a third-party communication system.
This incident highlights the persistent risks in the crypto space, largely fueled by social engineering tactics and misleading wallet-related scams.

Numerous posts on Reddit revealed that the message claimed Betterment was “giving back” after a highly successful year, offering to triple Bitcoin and Ethereum deposits sent within a strict three-hour timeframe.

Recipients were instructed to transfer up to $10,000 in cryptocurrency to specific wallet addresses, with promises of receiving $30,000 in return.

Scam Notification Promising Triple Crypto Returns Sent to Betterment Accounts

Fake Betterment Message Mirrors Common Scam Practices

Images of the fraudulent message circulating online showed it appearing as an official promotion. Some users even reported receiving similar messages via email.

The format and language used closely mirrored typical crypto scams that rely on creating a sense of urgency and presenting unrealistic promises to push users into quick decisions.

Betterment recognized the incident, clarifying that the message did not have their approval. In a statement posted on X, the company stated that the notification came from a third-party system utilized for marketing and customer communications and advised users to disregard it.

“This is not a real offer,” Betterment affirmed, apologizing for any confusion this incident may have caused.

Betterment operates as an automated investing service, often referred to as a “robo-advisor,” which constructs and manages diversified portfolios of low-cost exchange-traded funds (ETFs).

In December, blockchain security firm PeckShield reported 26 significant exploits, with scams involving address-poisoning and private-key leaks resulting in considerable losses. One individual lost $50 million due to copying a fraudulent address that closely resembled the correct one. Another incident included a private key leak associated with a multi-signature wallet, leading to around $27.3 million in losses.

The crypto sector’s risks extend beyond technical vulnerabilities to social engineering schemes, as evidenced by Brooklyn resident Ronald Spektor, who is facing charges for allegedly stealing $16 million from approximately 100 Coinbase users by impersonating company employees.

Automated Attacks Target EVM Wallets

An attacker has drained funds from hundreds of crypto wallets across Ethereum Virtual Machine-compatible networks, extracting small amounts from each address, which investigators characterized as a coordinated low-value operation.

Onchain analyst ZachXBT reported that losses, typically below $2,000 per wallet, indicate a widespread campaign rather than isolated incidents.

Security experts have cautioned that this activity appears automated, with initial findings suggesting phishing emails that impersonated MetaMask branding and potentially harmful browser extensions.

Cybersecurity firm Hackless urged users who may have been affected to revoke smart contract approvals and carefully monitor their wallet activities as a preventative measure.

This incident emerges amidst ongoing scrutiny surrounding wallet security, particularly following a separate breach involving Trust Wallet disclosed in December, which compromised about 2,600 wallets in a supply-chain attack.

While it is still uncertain whether the two incidents are linked, the similarities underline the ongoing risks users face across EVM-based networks, despite a recent dip in overall cryptocurrency exploit losses.