The Cryptocurrency Wallet MetaMask alerted users to a new scam being applied to steal victims’ assets. This is an address poisoning scam, which manipulates the accounts to which users send their cryptos.
They use an address with the same first & last few characters as the real transaction you sent; in hopes you will not check the full address, and instead copy theirs in a future txn. (2/3) – More detail here: https://t.co/xGxNgRX4WM) — MetaMask Support (@MetaMaskSupport) January 11, 2023
“A new scam called ‘Address Poisoning‘ is on the rise. It works like this: after sending a normal transaction, the scammer sends a $0 txn token, ‘poisoning’ the txn’s history.”
New scam on MetaMask
As MetaMask explained, the scam in question exploits the trend of copy and paste addresses to carry out the transactions. First, scammers use advanced software to monitor the victim’s transactions, particularly with stablecoins. Then, the scammer uses a “vanity” address generator to create an address that is similar to the victim or the recipient of the transaction. “Because they are so long, crypto wallet addresses are often shortened. You may only see the first batch of characters, or sometimes you may see the beginning 5-10 or so and the last 5-10 or so, skipping the middle,” says MetaMask. “This is the trend that ‘address poisoning’ exploits.” After creating the fake address, the scammer sends a transaction of insignificant value to the fictitious account he created, which approximates the victim’s, “poisoning” the wallet. As the fictitious address is very similar to the real one, the user might end up copying the fake address the next time they make a crypto transaction. “If you paste their address by accident, it will send funds to them and not to you. And since on-chain transactions like this are immutable (cannot be changed once confirmed), lost funds will be unrecoverable.”
How to protect yourself from the new MetaMask scam?
As MetaMask reported, there is no way to stop people — including scammers — from sending crypto to your account. So, in the case of this scam, attention when making a transaction is essential. “While it is relevant for any transaction, make sure the address is correct if the assets you are sending are of considerable value to you. Checking each character is the only way to be completely sure,” he says. Also, another tip is to avoid copying addresses from transaction history, and if you do, check very carefully. This goes for both the wallet history and the block explorer history. Using a hardware wallet can also be a good solution. After all, these wallets often require the user to verify and confirm any address they are sending crypto to before completing a transaction. Finally, MetaMask recommends adding frequently used addresses to your address book. “If you have a contact’s address saved, you can be sure it’s the right address and you won’t have to copy and paste it every time you need it,” concludes the company. Also Read: Bitfinex Celebrates Passage of Cryptocurrency Law in El Salvador: “Historic Day”
