What is Web3? The term “Web3” or “Web3.0” was coined by the popular Ethereum co-founder Gavin Wood in 2014. It is a concept based on blockchain technology, considered an upgrade to the current mainstream World Wide Web (www). Web3 incorporates decentralization and a token-based currency system. We’d be looking at the common top Web3 phishing scams and how to deal with them.
Although Web3 provides new opportunities for decentralized finance (DeFi) and free flow of content, there is always a possibility of unsuspecting Web3 users to be scammed by fraudsters. People are increasingly becoming victims of scams and fraudulent activities that comprise their credentials and the platforms. This is a huge reason why platforms like Bitcoin Buyer are important, especially in transitional moments in times like this.
Industry watchers have said that Web3 is a good resource to provide additional data security, and privacy for users in the future. Some experts have, however, tried to say that Web3 is only a buzzword and is insignificant in the grand scheme of things.
In this article, we will point out the creatively malicious ways that fraudsters have devised to defraud innocent Web3 users off their hard earned tokens and other valuables during trading and other activities, and how to remain secure going forward.
Fraudulent Social Media Accounts, Websites & Emails
Of all the Web3 phishing scams, this is the most commin. Fake URLs and phishing emails are believed to be one of the oldest methods that are adopted on a large scale across the world.
As we know, Web3 is decentralized as well as transparent – this is a perfect situation for website and email scammers. There is no shred of doubt that Web3 will be full of duplicate or copycat websites. As a matter of fact, it is only inevitable that such websites will pop up like a weed on fertile ground in a digital ecosystem.
Also, fraudulent emails and fake social media accounts will do the rest in luring people into the trap. The prominence of “get-rich-quick” and “pump-and-dump” schemes that currently plague the social media space right now highlights that it is only the beginning of something far worse.
What to do:
Web3 users should steer clear of questionable and unsolicited emails and pages. Like, don’t even attempt any click. Swipe, drop, or tap to delete such content on sight.
Organizations should educate their staff on the new normal of cybersecurity and ensure that they carry out constant “fire drill” tests to fish out weak users for re-training.
Ice Phishing Scam
In an ice phishing attack, the fraudsters try to trick their victims into divulging vital details that lead to their token wallets.
As seen, the name is similar to real-world ice fishing where a hole is deliberately made in the frozen lake to entrap an unsuspecting fish. Then it is quickly hijacked once it shows up to the hole. A similar method is implemented in this clickjacking scam. Easily one of the most brutal Web3 phishing scams.
Cybercriminals always lurk around the digital ecosystem to trap in all such unsuspecting users, modify the smart contracts by inserting a nefarious and malicious script. This is done at the front end of the smart contracts.
What to do:
Only deal with authorized and verified merchants/vendors at all times. Make sure not to click any unauthorized document
Seed Phrase Phishing Scam
A seed phrase is basically a set of random characters generated by your crypto wallet handler when you first set it up for use. What you should do after receiving your seed phrase is to keep it somewhere safe. It helps you unlock your account in case you lose all the other vital information associated with your wallet.
Now, this is the kind of concept that is currently a nightmare for the prominent organizations that are currently operating today. One bad apple with the right information can sabotage the finances of the company using the seed phrase to throw it open.
What to do:
Safeguard your seed-phrase by keeping fragments of it in different places, devise a means to never let any one person or stakeholder have the full phrase.
Malicious AirDrops Scam
This is the most common Web3 phishing scam on social media. A crypto airdrop is a marketing strategy used by most startups in the digital ecosystem to promote a new token/coin. The startup delivers tokens to the wallets of influencer-traders either for free or for a shoutout.
Now, such airdrops can be used by the scammers in the form of campaigns to attract the unsuspecting population and scam them by proposing mouth-watering incentives.
What to do:
Be very wary of unsolicited airdrops, this is where it all starts.
Whether you are in the current reality, Web3, or even beyond, never let your guard down about what comes and festers in your digital space.
It will be extremely tough for a cybercriminal to steal your assets without first pulling a trick on you to get your vital security details. It is your responsibility to ensure that your vital info remains with you only.