Changpeng Zhao, CEO of Binance, the biggest crypto exchange, shared a list of the six most common crypto scams of the year earlier today. The CEO said on Twitter that the compilation was made by Sebastian Lim, who is the security partner for the exchange.
SBF isn’t the end of making crypto safe. Learn how to keep yourself safe. Top 6 Most Common Crypto Scams in 2022 | Blog by HashDit, a Binance security partnerhttps://t.co/fIbOPvhTwZ
November 28, 2022: CZ Binance (@czbinance)
Related:Â Binance will contribute $1 billion to the crypto recovery effort.
Lim, who is also known as HashDit, is one of the people in charge of keeping the BNB Chain ecosystem safe. They said that the traditional phishing scam is also possible in the Web3 space, but it is done in a more creative way.
Lim says that the scammer fakes situations like giveaways, airdrops, or NFT pre-mint events that could make a crypto user feel the fear of missing out (FOMO). This is done to trick them into giving away sensitive information like seed phrases or login credentials. The scammers use Discord, Twitter, and Telegram to send their messages.
HashDit also said that scammers could trick users by saying that an application has a new bug or security hole and giving instructions on how to fix it manually, which would include giving out private keys.
The security expert also talked about ice-phishing, Ponzi scams, event spoofing, NFT sleep minting, CHI gas token farming, and MEV scam events as other sneaky ways to get money.
Ice-Phishing is a technique used by scammers to get a crypto user to sign a transaction that grants the attacker control over all of the user’s assets without revealing the user’s private keys or seed phrases. Notably, phishing transactions look like normal transactions on DeFi apps like PancakeSwap, even though they should be flagged as suspicious.
Binance’s security expert said that to avoid being a victim of ice-phishing, people should:
Either-or transactions are not something you should sign. When signing ETH sign requests, MetaMask will show a risk warning, but people who don’t know much about security can fall for these tricks.
CNBC says that people will lose more than $1 billion to crypto scams in 2021. The most common types of crypto scams are fake investments and romance scams.
Related: Effective altruism is now derogatory, according to CZ, CEO of Binance.
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