See More

Blockchain Security Firm SlowMist Uncovers New Crypto Scam

2 mins
Updated by Bary Rahma
Join our Trading Community on Telegram

In Brief

  • SlowMist exposes new crypto scam using modified Ethereum RPC.
  • Scammers trick users with fake USDT balance via controlled node.
  • Advisory: Maintain vigilance and enhance security against scams.
  • promo

SlowMist, a renowned blockchain security company, has recently exposed a sophisticated crypto scam targeting users through physical transactions involving USDT.

This fraud leverages a deceptive modification of Ethereum node Remote Procedure Calls (RPC).

New Crypto Scam Uncovered

The crypto scam operates by first gaining the trust of unsuspecting users. The fraudster persuades the target to download the legitimate imToken wallet, then sends 1 USDT and a small amount of ETH as bait.

The trap is set when the scammer convinces the user to switch their ETH RPC URL to a node controlled by the scammer. This manipulated node displays a falsified USDT balance, misleading the user into believing they have received substantial funds.

Unaware of the deceit, the user, upon attempting to transfer out miner’s fees to cash out the USDT, discovers the scam only after the funds fail to materialize, and the scammer has vanished.

“The cunning aspect of such scams lies in exploiting psychological weaknesses of users. Users often focus only on whether funds have been credited to their wallets, overlooking potential risks. Scammers take advantage of this trust and negligence, using believable tactics such as transferring small amounts of money to deceive users,” analysts at SlowMist said.

Read more: 15 Most Common Crypto Scams To Look Out For

The underlying technology abused in this scam, RPC, is essential for interacting with blockchain networks. It allows users to check balances, create transactions, or engage with smart contracts. Typically, wallets connect to secure nodes by default.

However, connecting to an untrustworthy node can result in malicious alterations to displayed balance and transaction details.

Further investigation revealed that the scammer’s address transferred 1 USDT to three different addresses. All of these previously involved in similar fraudulent activities. This address is also linked to trading platforms and flagged as associated with pig butchering scammers.

SlowMist advises cryptocurrency users to maintain a high level of skepticism and enhance protective measures to guard against such cunning financial schemes.

Top crypto projects in the US | July 2024
Harambe AI Harambe AI Explore
Uphold Uphold Explore
Exodus Exodus Explore
Coinbase Coinbase Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | July 2024
Harambe AI Harambe AI Explore
Uphold Uphold Explore
Exodus Exodus Explore
Coinbase Coinbase Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | July 2024

Trusted

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

Frame-2466.jpg
Bary Rahma
Bary Rahma is a senior journalist at BeInCrypto, where she covers a broad spectrum of topics including crypto exchange-traded funds (ETFs), artificial intelligence (AI), tokenization of real-world assets (RWA), and the altcoin market. Prior to this, she was a content writer for Binance, producing in-depth research reports on cryptocurrency trends, market analysis, decentralized finance (DeFi), digital asset regulations, blockchain, initial coin offerings (ICOs), and tokenomics. Bary also...
READ FULL BIO
Sponsored
Sponsored