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Binance CEO Shares Six Most Popular Crypto Scam Methods of 2022

Published 11/28/2022, 05:51 AM
Updated 11/28/2022, 06:00 AM
Binance CEO Shares Six Most Popular Crypto Scam Methods of 2022

  • Binance CEO posts about the most popular crypto scams of the year.
  • The compiler is one of the experts responsible for securing the BNB Chain.
  • The highlighted tactics include Ice-Phishing, Ponzi Scams, Event Spoofing, and CHI Gas token farming.

Earlier today, Changpeng Zhao, the CEO of the largest crypto exchange, Binance, shared a list of the six most popular crypto scams of the year. The CEO credited the compilation on Twitter to Sebastian Lim, the exchange’s security partner.

Notably, the compiler, Lim, also known as HashDit, is one of the leaders responsible for securing the BNB Chain ecosystem. They noted that the traditional Phishing scam is available in the Web3 space with more creative delivery tactics.

According to Lim, the fraudster fakes situations that could make a crypto user perceive the fear of missing out (FOMO) via giveaways, airdrops, or NFT pre-mint events, ricking them into divulging sensitive information such as seed phrases or login credentials. The scammers’ delivery mediums include Discord, Twitter, and Telegram.

Furthermore, HashDit noted that scammers could trick users by announcing that a new bug or vulnerability exists within an application and detailing a manual resolution process, which would ultimately include revealing private keys.

Other underhand tactics the security expert highlighted are Ice-Phishing, Ponzi Scams, Event Spoofing & NFT Sleep Minting, CHI Gas Token Farming, and MEV Scams Events.

Ice-Phishing is a method where scammers trick a crypto user into signing a transaction that gives the attacker control over the user’s entire asset without the direct leakage of private keys or seed phrases. Notably, Ice-Phishing transactions appear as legitimate transactions on DeFi applications like PancakeSwap, with the usual warning signals.

To prevent being a victim of Ice-Phishing, Binance’s security expert declared:

Stay away from signing eth_sign transactions. MetaMask will display a risk warning when signing eth_sign requests, but users with no security experience can fall for these traps.

According to a CNBC report, people lost over $1 billion to crypto scams in 2021, and the most common types include fake investments and romance scams.

The post Binance CEO Shares Six Most Popular Crypto Scam Methods of 2022 appeared first on Coin Edition.

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