This Is How Scammers Can Drain Your Crypto Wallet

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Scammers spun up at least 7,905 blockchain wallets in May to collect crypto they steal from ordinary users, according to a blockchain security company Forta Network.

Forta, which has recently launched its own token, operates a network of bots that detect various kinds of scams on Ethereum, Binance Smart Chain, Polygon, Optimism, Avalanche, Arbitrum and Fantom blockchains.

Christian Seifert, researcher-in-residence at Forta who previously worked at Microsoft’s security research division, told CoinDesk that Forta’s algorithms can detect various kinds of anomalous behavior while scanning transactions on blockchains.

Some of those anomalies are attacks on users’ wallets.

For some of the attacks, scammers rely on social engineering – sniffing around for user’s personal information or deploying tricks to get crypto users to reveal their passwords or seed phrases. Other attacks only require knowing a victim’s wallet address. “A lot of attacks are social engineering attacks: users are being lured to a website, a website asks them to connect their wallet, a transaction pops-up, a user approves it and their money is gone,” Seifert said.