Crypto scams are the top threat to investors, as scammers pose as partners with leading cryptocurrency trading platforms in most cases. Such scams come through wallet drainers, who use phishing pages to lure victims into signing malicious transactions. As a result, attackers can siphon the victim’s crypto and NFTs.
Wallet drainers steal millions of funds in assets each week. It is hard to stay safe because they steal from you differently.
Common Ways Wallet Drainers Steal Assets
Various wallets are protected heavily from external intrusions. However, scammers navigate around all these protocols and still drain your wallet. One tool that makes your wallet secure is using the seed phrase, a cluster of random words generated by the crypto wallet when setting it up. Giving your seed phrase away is like giving away all your assets for free.
The seed phrase can be compromised when you download a fake P2E game, which is a form of malware. It starts with an innocent post of even a DM asking you to test out a new P2E game. Consequently, wallet drainers get access to your wallet seed phrase. They also formulate fake security checks.
On the other hand, bots can also be used to give access to wallet drainers. An example is the Uniswap trading bots that lure you with the promise of getting easy gains and free money. As soon as you start the process, all your funds get stolen through a backdoor in the contract.
Additionally, you can be tempted to sign a malicious transaction that can empty your wallet in seconds. Such include;
- Signing a token approval means giving someone else permission to withdraw your assets.
- Through counterfeit assets.
- Some fake offers look like normal offers, but they are an offer that gives all your NFTs to a wallet drainer for free.
- Honeypot NFTs, which make them look like good trades, you buy the NFT, but when trying to sell it, you cannot.
Staying Safe from Wallet Drainers
When they use such complicated moves, it is hard for you to stay safe. However, there are basic things you can do to stay safe, which include;
1. Using a hardware wallet, which keeps your seed phrase safe.
2. Only deploy or fund trusted contracts
3. Check your transactions carefully before completing them.
It is thus within your power to try ways to remove your susceptibility to such attacks. When wallet crypto drainers become active, they are effective and do quite well. Do well to be safe.
You can also check how to Avoid These Mistakes in Crypto to stay safe.
Vincent Munene is a freelance writer and a great blockchain enthusiast. Blockchain has changed his life in terms of financial freedom and in return, he likes to educate people and keep them up to date on everything blockchain. He is a Biochemist by profession and also loves to play the piano.
