Yet another threat has emerged in the world of cryptocurrency. Scammers create fake websites that mimic legitimate platforms that allow transaction simulations, a scam known as ‘transaction simulation spoofing’.
Transaction simulations, also referred to as ‘dry runs,’ aim to enhance the security of cryptocurrency transactions by enabling users to monitor the outcome of their blockchain transactions prior to their execution. Therefore these scams are especially malicious as they target those actively interested in maintaining the security of their crypto.
The scam highlights the importance of user vigilance when it comes to purchasing and making transactions in cryptocurrency. Those new to crypto must stay aware of the risks, as being less experienced makes one more vulnerable to attacks. For example, individuals must purchase crypto from trusted sites, such as newly added cryptocurrencies on Binance.
Such sites offer safe platforms for the purchase of new crypto with exceptional profit potential. Users of cryptocurrencies should learn which sites are trustworthy and understand how to keep themselves safe.
The scam was identified by ScamSniffer, a Web3 anti-scam program that can be added to Chrome and helps keep crypto users safe while making crypto transactions online. The company shared its mission, stating that it wishes to, ‘Enhance web3 security for everyone and accelerate mass adoption through community-powered protection.’
To carry out these scams, the attackers have been crafting fictitious websites that purport to provide transaction simulations through ‘claim’ functions, promising to reward the user with a small amount of ETH. Then, during the time delay before execution, the attackers quickly alter the on-chain contract.
This implies that once the user approves and signs the transaction, the attackers gain access to all the cryptocurrency in their wallet, enabling them to swiftly deplete it before transferring it to another attacker’s wallet.
This scam has led to a significant loss of Ethereum for many users. In one of the worst cases, an individual lost 143.45 Ethereum, which is equivalent to almost $460,000.
To identify and avoid these scams, users are encouraged to remain wary of crypto sites that offer “free claim’ services and always do research before submitting any information or signing any contract.
These kinds of scams are yet another ‘wallet-draining’ threat to cryptocurrency enthusiasts. Last year, scammers, similar to those responsible for the transaction simulation spoofs, were able to steal over $494 million from over 300,000 different people.
This is a concerning number, especially as many people turn to cryptocurrency for the additional security benefits they have over alternative currencies. However, as mentioned, vigilance is key, and as long as individuals are using trusted and reputable websites and verified decentralized apps, they can enjoy the many enhanced security benefits that crypto offers.
