Members of the Forta Network have discovered a new type of cryptocurrency scam dubbed “Sleepdrop” that has affected a huge number of users. The scam involves the appearance of unexpected tokens from a seemingly legitimate contract in users’ wallets. Users who do not avoid such airdropped tokens are at serious risk.
Forta network sent a do Thursday alert about sleepdrop. According to Forte, the scam operates by duplicating genuine tokens through a technique similar to “sleepminting” of NFTs. But bad actors specifically target ERC-20 tokens. So far, scammers have impersonated coins from Uniswap, Channellink, Lido, Circle, and others.
Forta announces reward for foiling slipdropping
In order to defraud unsuspecting users, scammers circulate fake tokens to multiple individuals. Performing this transfer makes it appear as if the tokens come directly from the authenticating contract.
By linking their wallet to the website, users sign a transaction that appears to link them to a decentralized application (Dapp). However, unbeknownst to users, this transaction actually invokes the contract’s connect function, resulting in the transfer of a small amount of ETH.
The scammers will then use an ice phishing attack to trick victims into swapping their new coins with the main legitimate coin, and the smart contract will steal ETH from the victim’s wallet.
Forte, which first spotted the scam, is a Web3 security solution and real-time detection network that monitors blockchain activity. The network is composed of a decentralized network of independent node operators that scan transactions and block changes for potential threats.
Since the discovery, the Forte community has compiled A list of slipdropper addresses and scam URLs that present a risk. On Friday, it announced a reward for detecting the slipdropping. The Forte Foundation will cover the initial bot deployment costs, including staking. The prize will be paid in FORT tokens.
Ivan Spanier, a member of the Forte Foundation and the discoverer of the Slipdrop scam, spoke with BeInCrypto about the risks of this new type of fraud. In Spanier’s view, it is a “typically insidious” scam.
“Interacting with sleepdrop contracts almost always ends with the withdrawal of the native token in all cases. To be clear, airdrops always have to be verified contracts and claimed from official sites,” said Spanier.
“Under no circumstances should users interact with such airdropped tokens, even if it appears to be sent by an official team,” he said.
Crypto crime is still less than 1% of the total volume
This new type of attack is just one of many tricks scammers use to steal your cryptocurrency. But despite the ever-emerging threats, you are still relatively safe.
as of 2023 Chainalysis Crypto Crime ReportIllegal transaction volume to reach a record high of $20.6 billion in 2022. Growth was recorded for the second consecutive year despite a fall in the market.
However, it is important to note that illegal activity represents less than 1% of the total trading volume in the cryptocurrency space. Additionally, while there has been a significant increase this year, the proportion of crypto-related crime has actually been declining over the long term.
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