Binance CEO Changpeng “CZ” Zhao, recently warned his followers about an increasingly popular scam aimed at the crypto community. In this scam, fraudsters use fake wallet addresses to cheat users during transactions.
How the Poisoning Attack Scam Works
In this scam, hackers create wallet addresses whose initial and final characters are similar to the user's real address. After the fake address is created, the fraudster will send a dust transaction which will be visible in the victim's transaction history. If the victim copies and uses the address from one of these dust transactions, the funds will be sent to the fraudster.
It is said by CZ, an experienced crypto operator fell victim to this fraud on August 1, he sent $20 million worth of crypto to a dust address. The operator realized the error after the transaction was made and immediately asked Binance to freeze Tether before the funds reached the fraudster.
How to Avoid Poisoning Attacks
This fraud can be avoided by using a blockchain domain, such as Ethereum Name Service. These blockchain domains are similar to email addresses, allowing users to identify wallets using plain words rather than long strings of letters and numbers.
Additionally, it is not recommended for users to copy and use addresses from the app to transfer funds. Users are also advised to use strong and unique passwords for crypto accounts and enable two-factor authentication.
All users should be vigilant and ensure the security of their transactions. In the crypto world, security is paramount!
Sumber: Cointelegraph