Due to the collapse of the FTX platform and the freezing of investor funds that accompanied it in November, many cryptocurrency holders preferred to take refuge in crypto wallets to avoid suffering a similar fate. However, despite the security they offer, crypto wallets can be vulnerable to attacks, which can prove terrible for owners of Bitcoin and other cryptocurrencies.
Attacks that do great damage
The use of the method known as “address poisoning” has spread across the cryptocurrency world, affecting all digital wallets. This very simple method is used by hackers.
At first, the thief uses a program that monitors your movements of funds. It sounds suspicious, but it’s not illegal, because this anonymous data is available to anyone viewing a blockchain (Bitcoin, Ethereum, TRX, etc.).
After carefully monitoring your wallet transactions, the hacker notes the tokens you send and the addresses you use frequently. Using an address generator, he creates a fake recipient that bears an uncanny similarity to the initial wallet. This fake recipient shares the same first and last characters as the original wallet, making fraud difficult to detect.
Wallets provide addresses that are used to send and receive cryptocurrencies. These addresses are deliberately long and difficult to understand.
Crypto: an infected wallet
The thief will send a small amount of cryptocurrency to the address he generated earlier, so that this address is added to your history. This is how it will infect your wallet.
The attacker is able to take advantage of his victim’s negligence. If the victim sends funds to the address they usually use, they might inadvertently copy the hacker’s similar address into their transaction history and send them their funds without knowing it.
Scammers take advantage of inattentive crypto users by copying/pasting unreadable wallet addresses. MetaMask has shed light on the increase in these frauds, and all types of wallets (Ledger, Trust Wallet, etc.) and even platforms can fall victim to them. It is essential to remain vigilant in the face of the risks of scam.
To protect yourself from scammers, it is essential to use a crypto address manager. In this way, users can copy their addresses safely and without the risk of making mistakes. Unfortunately, it is not always easy to enter these long and complex addresses, which sometimes constitutes an obstacle for the uninitiated in technology. In the weeks and months to come, Objeko will be sure to tell you regarding the hottest scams right now.
