Blockchain investigators at SlowMist have exposed a new crypto scam preying on users making offline USDT payments through physical cash trades. The deception involves tricking victims into connecting their imToken wallet to a malicious node controlled by scammers.
First, the fraudsters build trust by having the target download imToken’s legitimate app and send small amounts of USDT and ETH. But then they instruct the user to change their node settings, allowing the scammers to inflate the victim’s USDT balance and make it appear a deposit was received.
However, when the user tries to withdraw the funds, they find the inflated balance is an illusion. By then, the scammers have already taken off with the cash from the in-person transaction.
According to SlowMist, scammers manipulate user balances and contract data by taking advantage of flaws in blockchain technology, such as Ethereum’s Remote Procedure Calls. Connecting to an untrusted node leaves users exposed to such manipulation.
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