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Here’s how crypto wallets are detecting scammers, courtesy Coinbase



Here's how crypto wallets are detecting scammers, courtesy Coinbase
Source: Unsplash

  • The most recent cryptocurrency wallet service to roll out transaction previews and blocklists is Coinbase.
  • The bitcoin exchange now stands alongside many other vendors of cryptocurrency wallets.

In response to an increase in cryptocurrency thefts, U.S.-based cryptocurrency exchange Coinbase has introduced transaction previews and blocklists.

On 30 January, the cryptocurrency exchange stated that it had added a new set of safety features to its wallet software. This would make it simpler for customers to recognize and respond to suspected wrongdoing from scammers.

These integrations contain a transaction preview feature that informs the user of the expected change in their “token and NFT balances” before pressing the confirm button.

How users will gain with the crypto wallets

Additionally, the company has introduced token approval alerts, which inform users when a dApp requests permission to withdraw tokens and NFTs. Moreover, to reduce “exposure to potential vulnerabilities,” the company has also included new layers of permission control that allow users to revoke dApp connections directly from the app.

The cryptocurrency exchange joins the ranks of numerous other cryptocurrency wallet providers, such as Solana [SOL]-based Phantom, Web3 wallet provider Ember, and Bitski, that have either launched or announced comparable capabilities targeted at preventing cryptocurrency scams and phishing assaults.

On 27 January, Phantom reminded users that its wallets are protected with several security features, including transaction previews, an open-source blocklist, NFT spam reporting, and burning. This was only two days after Moonbirds creator Kevin Rose acknowledged losing $1.1 million in NFTs because of a targeted phishing attack.

According to product designer Jasmine Xu, these integrations will cover:

“Self custody, dapp browser, transaction simulation previews, notifications about account activity, in-app burner vault, and a bunch more in a few weeks.”

Bitski also revealed on 24 January that it was working on them via its 2.0 wallet.

In a recent blog post, Coinbase said that it will soon introduce a tool that will allow customers to:

“See and revoke existing token balances.”

Scams grew 37% in 2022

According to a recent investigation, hackers stole cryptocurrency valued at $4.3 billion between January and November 2022. This represented a roughly 37% annual increase from 2021. Even though the total amount rose, 2022 saw the fewest individual transfers to cryptocurrency fraud over the previous four years.

Attacks on DeFi protocols, exchange platforms, and blockchain bridges were the main sources of cryptocurrency breaches and scams in 2022. Around 72% of the cryptocurrency that was taken by hackers in 2021 came via DeFi protocols. In addition, DeFi vulnerabilities were used in 21% of all hacks that year.

97% or more of the stolen cryptocurrency this year came from DeFi technologies. In contrast, breaches on cross-chain bridges will cause a loss of $1.4 billion in 2022.

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Ser Suzuki Shillsalot has 8 years of experience working as a Senior Investigative journalist at The SpamBot Times. He completed a two-hour course in journalism from a popular YouTube video and was one of the few to give it a positive rating. Shillsalot's writings mainly focus on shilling his favourite cryptos and trolling anyone who disagrees with him. P.S - There is a slight possibility the profile pic is AI-generated. You see, this account is primarily used by our freelancer writers and they wish to remain anonymous. Wait, are they Satoshi? :/

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