Betterment customers fall victim to a typical crypto giveaway fraud.

crypthub

about 5 hours ago

Breach Overview

Betterment’s platform was compromised, allowing crypto hackers to send fake push notifications and emails to thousands of users. The unauthorized party accessed a third‑party system that Betterment uses for marketing communications. The breach enabled attackers to impersonate the company and distribute a fraudulent “crypto giveaway” offer.

Scam Mechanics

The counterfeit messages promised to triple deposits of Bitcoin or Ether within three hours, quoting examples like a $10,000 transfer returning $30,000. Recipients were asked to send as little as $1 or up to $750,000 to specific wallet addresses, which have since received about $13,300 in Bitcoin and $1,779 in Ether. Email headers showed proper SPF, DKIM, and DMARC authentication, meaning the fake mail originated from a Betterment subdomain.

Company Response and Impact

Betterment posted warnings on X and Reddit, stating the unauthorized access was removed and an investigation launched. The firm clarified that clicking the fake offer did not compromise account security and that the message came from a compromised third‑party tool. The incident highlights a shift toward using trusted financial platforms for crypto scams, where stolen funds are irreversible.