One person shares his painful experience of losing $173,000 by clicking on a fraudulent link. In this article, I will explain how this person fell victim to the scam, and I will give you tips to avoid falling into the same trap.
What are scams and statistics about them?
Cryptocurrency scams exploit vulnerabilities to steal people’s money or information. In 2023, the value of scams exceeded $5.6 billion, highlighting the urgent need for increased awareness and vigilance.
How to Fall Victim to Smart Contract Scams
Smart contract scams are one of the most common types. These malicious contracts can steal your money as soon as you agree to interact with them.
Mechanism of action:
1. Scammers hide malicious code inside the smart contract.
2. The user interacts with this contract through a fake transaction or a decentralized application.
3. Then, the contract steals the tokens from the user's wallet.
How to avoid scam: Someone was excited about a popular airdrop offer, but clicked on a fake link that looked like the original site, which resulted in them losing their money instantly. Here are some tips to avoid this:
Read the transaction approval details carefully.
Avoid "unlimited approval" for all currencies, as it represents a great risk.
Use smart contract auditors like CertiK or Quantstamp to verify the security of projects.
Limit approvals in wallets like Metamask to specific amounts.
Use tools like Revoke.cash to revoke unwanted approvals.
Fake Wallet Scams
Fraudulent apps posing as legitimate wallets are appearing on app stores, designed to steal private keys or access your funds.
How it works:
•Users download fake apps from untrusted sources.
•The application takes over the private key or passwords.
•Scammers use this information to steal money.
• Fraud via decentralized applications and projects
•Scammers create DeFi apps and projects that appear legitimate but are intended to steal funds.
Mechanism of action:
•Scammers promote fake DeFi projects with fake teams or fake partnerships.
•Users deposit money, hoping to get returns, but the scammers then disappear, or withdraw the funds from the wallets.
How to avoid fake apps and projects:
• Check the team's legitimacy and review the project's white paper.
• Use trusted platforms like Aave, Compound, and Uniswap.
• Ensure that there is an audit from trusted sources such as CertiK or PeckShield.
•Seek community feedback and opinions via platforms like Telegram or Discord.
Scams on Telegram and Discord
•Scammers use platforms like Telegram and Discord to impersonate moderators or support teams.
How it works:
•Identity theft: Scammers pretend to be administrators to obtain sensitive information.
•Fake support: Fake channels are created to steal information.
•Airdrop scams: Promoting fake airdrops to trick users into linking their wallets and stealing funds.
How to avoid these scams:
•Administrators do not communicate with members via private messages first.
• Use official links from the site.
• Avoid airdrops that ask for access to your wallet, as legitimate airdrops do not need your private information.
•Do not click on links or download files from their groups.
Conclusion
It is important to learn more about cryptocurrency scammers. Do not store all your funds in one wallet, and it is better to buy a cold wallet to protect large amounts. Always check the health of your wallets by unlinking them when necessary. Share this information with your friends to avoid them being scammed.
