Check Point Research (CPR) has noted several crypto scams in the last few days where wallet users have lost thousands of dollars. The report comes days after a recent token scam on the Squid Game play-to-earn platform.
This new method of scam is noteworthy as it doesn’t rely on email links to wallet owners or fake tokens. Instead, it targets users attempting to download and install the most used crypto wallets.
Additionally, the report also called for caution for users trying to change their currencies on crypto swap platforms like PancakeSwap or Uniswap.
According to an example cited by the report, scammers closely imitate the original wallet site domain “phantom.app” to variants like phanton.app or phantonn.app, or even different extensions like “.pw”.
Something similar is seen with the MetaMask wallet address as well due to its popularity among users. Where the fake MetaMask site looks very similar to the original platform and successfully steals private user keys and passphrases.
There are more chances to fall prey to this scam if investors search keywords on Google instead of going to the official links directly. Therefore, CPR has cautioned users to “double-check the URLs”.
Squid Rug off
“The project was not without its red flags…Despite the warning signs, speculators continued to buy the token, pushing prices up exponentially before the project founders drained the liquidity pool in minutes, taking off with investors’ funds in the process.”
The coin had reportedly surged by over 75000% in its short run with analyst Mr. Whale noting its appeal despite its risks.
Top-performing coins today:
1. Chihuahua: +1196%
2. Squid Game: +561%
3. MAGA Coin: +502%
4. GreenMoonZilla: +491%
We definitely aren't in a bubble. pic.twitter.com/AqbA8R39OY
— Mr. Whale (@CryptoWhale) November 4, 2021
CZ said in the company blog that Binance is “working to identify and blacklist address affiliated with the developers”. Additionally, they are deploying functions to identify “bad actors”, and involve law enforcement in the action.
DeFi scams have become common with frauds at record-high numbers in 2021. CZ also said that it is not possible to ban or delist these attempts as they are “entirely community-driven” projects on BSC.