As scammers become more inventive, Changpeng Zhao, CEO of Binance Exchange, revealed a new fraud model to his followers.
Binance CEO Changpeng Zhao has alerted the public about a fresh cryptocurrency scam tactic that was recently used against a seasoned trader.
Zhao claims that the criminal was stopped before he could steal up to $20 million from the major cryptocurrency exchange. These con men have used a fresh technique to fabricate information in a way that fools unwary clients.
Cybercriminals Try a Variety of Crypto Scam Techniques
In the past, crypto traders employed a strategy to verify wallet addresses before initiating transfers. They would confirm that the starting and ending letters of their wallet addresses matched.
Typically, the middle part of the addresses was hidden and replaced with “…” to improve the user interface. However, Zhao explained that hackers have now adopted a new approach, generating wallet addresses in a manner where the starting and ending letters are identical.
Thereafter, “the scammer then uses this address to send you dust transactions so that the address is shown in your wallet. Now, if you want to send to the legitimate address, you might just pick one of the previous transactions in your wallet and copy the address. You might just copy the wrong one,”The CEO of Binance warned followers on Twitter that they might accidentally copy the incorrect one.
Crypto Trader Spotted a Transaction Error
The cryptocurrency trader who came dangerously close to falling for this scam yesterday only became aware of the inconsistencies after starting the transaction.
Binance quickly asked for the Tether (USDT) to be blocked before the transaction was executed, which helped save the day. Clearly, this does not suggest that the money would be given back to the concerned crypto trader immediately, but it also does not imply that it would not be given to the scammer.
The trader must fill out a few forms, including a police complaint, in order to get his USDT back. Then, he must wait while all due diligence is completed. One crypto Twitter user commented in response to the lengthy tweet from Zhao that he double-checks the first three and the last three letters rather than simply the beginning and ending ones. Zhao acknowledged that it is no longer valid.
In the crypto sector, these wallet breaches are happening increasingly frequently. Due to a hack on some of its wallets in June, Atomic Wallet issued a warning to customers. At this time, address attacks seem to be a growing trend.
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