Unveiling Common Crypto Scams
In the world of cryptocurrency, protecting your portfolio is of utmost importance. Axel Bitblaze, a crypto enthusiast who experienced the devastating consequences of being hacked, has shared valuable insights on common scams to keep your wallet safe. From smart contract scams to seed phrase scams and NFT scams, understanding these fraudulent activities can help users safeguard their investments.
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In this thread, we will be covering:
🔹Smart Contract scams (from tweet 5 to 13)
🔹Seed Phrase scams
🔹NFT scams
🔹Popular scams
🔹P2P scams pic.twitter.com/9VfHeVfHWL— Axel Bitblaze 🪓 (@Axel_bitblaze69) May 20, 2023
Identifying Smart Contract and Seed Phrase Scams
Smart Contract Scams: Interacting with contracts for airdrops can expose users to faulty ones. One common scam involves claiming an airdrop through a scam website. High-profile follower pages share fake phishing airdrop links, creating a false sense of legitimacy. Scammers employ tactics like buying followers, having a blue tick, and using profile pictures of popular projects like BAYC or MAYC. These websites trick users into connecting their wallets and signing messages and transactions, ultimately draining their funds.
Seed Phrase Scams: Scammers exploit seed phrases in two ways. In the first scenario, scammers send victims a seed phrase for a wallet containing USDT but without enough gas to execute a transfer. When victims import the seed phrase, they see their funds but are prompted to send TRX as a gas fee. However, the TRX is instantly transferred to the scammer’s wallet, even if gas is added.
In the second scenario, scammers manipulate users into giving out their seed phrase. They impersonate support staff, send fake emails, use Twitter reply bots, or create fake Google ads. By posing as admins or support team members, scammers reach out to victims and convince them to visit a fake Metamask website. Once victims enter their seed phrase, the scammers gain access to their actual Metamask accounts and drain their wallets.
NFT Scams and Phishing Websites
NFT Scams: The world of digital art and collectibles is not immune to scams. WETH Offer scams lure users by airdropping random NFTs and setting WETH offers on them. Victims cannot accept the offers as scammers either revoke the WETH allowance or don’t have any WETH. Curiosity often leads victims to check the scammer’s profile and bio, which then directs them to a phishing website designed to drain their wallets.
Another NFT scam involves free mint offers. Scammers send malicious websites resembling legitimate projects and encourage users to mint tokens. Upon connecting their wallets, victims are prompted to sign a message and approve a transaction with “SET APPROVAL FOR ALL.” This grants scammers permission to transfer NFTs from victims’ wallets at any time, resulting in the loss of valuable assets.
By understanding these common scams and remaining vigilant, crypto enthusiasts can better protect their portfolios and ensure a safe investment journey. Remember to double-check websites, never share seed phrases, and verify the authenticity of offers before taking any action in the crypto space. Stay informed, stay secure.
