24 September 2023

Digital Technology Guru

Digital Technology Guru Reviews

Scammers Exploit Deceptive NFTs to Trick Users into Losing Funds

2 min read
Scammers Exploit Deceptive NFTs to Trick Users into Losing Funds

Scammers have devised a strategy to deceive users and transfer their assets to their own accounts. These fraudsters lure individuals to deceptive websites where they trick them into authorizing transactions that result in the transfer of their assets to the scammers. Although investigations are underway, the identities of the individuals behind these operations remain unknown.

According to cybersecurity researchers, over 100 unique smart contracts associated with this scam have been identified. These contracts all have similar deployment patterns. The scam typically involves three main stages: the distribution of deceptive NFTs that appear to come from credible sources, the creation of misleading websites, and the deployment of malicious contracts that deceive users into giving away their funds.

Over half a million addresses have received these misleading token airdrops so far, with more than 20,000 users identified as victims. In one instance, users received a counterfeit Lido NFT token disguised as a “badge” for claiming an airdrop. The scam involving the Lido token was particularly sophisticated, making it seem like it originated from an authentic smart contract that had previously conducted an airdrop for early Lido stakers in 2021.

The complexity of ERC token contracts allows scammers to manipulate them even when they are genuine. It is important to note that the NFT itself does not pose a risk to a user’s wallet. However, if users mistakenly believe that the airdrop is genuine and interact with it, they may inadvertently claim malicious tokens on a fraudulent website.

To protect themselves from such scams, users should exercise caution when interacting with unfamiliar websites or engaging in token airdrop activities. It is advisable to verify the authenticity of the websites and smart contracts before authorizing any transactions. Staying informed about the latest scams and adopting good cybersecurity practices can also help prevent falling victim to these fraudulent schemes.

– AI-generated with the support of an editor.