Youtube’s Bitcoin Scam Problem Appears To Be Getting Worse

A few weeks ago I stumbled across a Youtube live stream that was clearly faked. It claimed Elon Musk was giving away 5000 BTC (roughly $47 million as of June 16, 2020). I flagged it as a Bitcoin scam and I assume the feed went down once a moderator saw the flag.

Then the weird part happened.

Youtube’s algorithm, knowing my interest in blockchain technology and my brush with a “giveaway” now recommends subsequent scams as they go live.

Tonight I reported four of them running simultaneously on Youtube. Two of them had been running for four hours and thousands of people had been watching.

Here’s the typical anatomy of these scams:

The video is always a prerecorded stream of a real event, sometimes involving a tech or crypto celebrity or a SpaceX launch. The title is deliberately something not related to the giveaway in order to evade immediate detection by Youtube’s scam detection.

Once the video is reported and taken down, these scammers (who by my research appear to be operating from Russia) just create a new channel, stuff the channel with fake followers so the channel is annotated with something like “30K Followers”, name the channel something like “Thomas Lee” or “Elon Musk”, and continue to operate with impunity.

Given the increasing number of these streams running simultaneously right now and the perceived growth in viewers and growing length of runtime, it would appear that Youtube is either unaware of this trend, even though these videos are getting reported, or else Youtube hasn’t been able to implement a comprehensive strategy yet to stop these scammers without unintentionally punishing the legitimate channels.

Perhaps if they could work the algorithm to keep recommending the scams to admins the same way Youtube is recommending 4 simultaneously streaming scams to me tonight?

Until then, Bitcoin enthusiasts with a lower IQ will be paying an unexpected price from their lack of knowledge or wisdom, and the majority of tech enthusiasts like myself will continue to get annoyed and keep reporting the videos and sometimes the advertised domain names.

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