Scammers Use Fake USDT Tokens to Steal From Venezuelan Merchants

Key Takeaways

• Scammers in Venezuela use zero-value cloned USDT at checkout, tricking merchants out of valuable goods.
• Cloned USDT tokens mimic real contracts, appearing valid in wallets and causing losses for merchants.
• Experts advise merchants to verify Tether contract addresses or use Binance to avoid fake USDT scams.

Fake USDT Tokens Surge for Payments in Venezuela

Threat actors are leveraging the high level of adoption of stablecoins in Venezuela to implement a criminal method involving “fake” USDT tokens.

Juan Kassabji, a Venezuelan tech enthusiast, has reported this scheme happening at a store checkout, when scammers asked merchants to use external, self-custodial wallets that display these tokens, with smart contracts mimicking real USDT stablecoins.

The cloned token used for these payments is also referred to as USDT but has no value, and it doesn’t share the same smart contract address as the official USDT token.

Nonetheless, the scheme does work as criminals use these tokens to execute the settlement, showing the payment as completed and leaving the store with the goods purchased.

Kassabji stressed that he knew of at least one case where a merchant accepted these fake tokens in an exchange involving over $5,500.