Ankita Verma
May 3, 2024
In our recent journey with the Persona Ad Network, we encountered our first scam scare, highlighting the need for tighter security measures. Learning from the incident, we delved into the intricate workings of crypto draining scams, shedding light on how scammers operate through fake campaigns and deceptive websites. To fortify our network, we implemented rigorous KYB verification, manual reviews, and automated screening protocols, emphasizing the importance of staying vigilant and educated in navigating the crypto landscape.
After running the Persona Ad Network for almost 10 months now, he had our first scam scare. This came from someone who posed as a legit business owner for 2+ weeks. Thanks to the community and partner support, we were able to detect and remove the Ads asap but this got the team thinking: how do we tighten the screws on our ad network and keep it foolproof? So, in this edition of "Proof of Growth," I'm sharing what we learned because, well, real growth means dodging those scammy speed bumps.
Wallet Draining is a form of malware, designed to deplete crypto wallets by transferring assets to the attacker's wallet. These threats take various forms, including malicious scripts, smart contracts, and phishing attacks, often facilitated by scam-as-a-service platforms.
Yes, you read it right. Wallet draining is an organized crime being offered as a “service” to malicious individuals or organizations. Well, that’s giving a whole new meaning to SAAS!
The most notorious SAAS wallet drainers like Angel, Pink, Monkey, and Inferno have caused substantial financial losses in the industry. Most of these drainers use telegram to provide their services and work through SaaS structures charging a fixed amount + (5-30%) of the stolen amount.
We've talked about crypto drainers as a service, but how exactly do these organized criminals pull off their schemes?
Perpetrators initiate fake airdrop or phishing campaigns, often leveraging social media, email, or paid advertising channels to entice unsuspecting users with promises of free tokens. These operations exhibit disturbing levels of sophistication, employing deceptive tactics like counterfeit airdrops, NFT minting opportunities, and compromised social media profiles.
These fraudulent activities generate traffic through various means:
Here's where things get even trickier. These imposters create fake phishing websites and use every trick in the book to look legit, mimicking real platforms with similar URLs and landing pages. It’s easy to miss if you aren't paying close attention.
So, what are the red flags to watch out for? 🚩🚩🚩
The scammers are after one thing: your crypto wallet. They'll trick you into connecting your wallet to their website, setting the stage for the final attack.
Once you click on the “Connect wallet” button, they'll try to convince you to interact with a malicious smart contract. These contracts are designed to look legit, often disguised as steps to claim your airdrop or mint your NFT.
Just connecting your wallet usually won't drain your funds, but some sites might ask you to "sign a message" – that's a red flag!
Our team at Persona looked into a few of these cases where people posted on Twitter saying that they connected their wallet to a malicious website and got immediately drained.
In every case, once we dig into the details, we have found that they signed a contract. It was not the case of just connecting a wallet and being immediately drained. You would be surprised how many victims confuse the two especially when it's common for sites to ask users to sign a message with their wallet to log in which many victims conflate with connecting their wallet.
This is why it's so problematic from a security standpoint for dapps to ask users to log in by signing a message with their private key. It conditions users into thinking it's normal to sign things within the first few seconds of landing on a new site.
If you fall victim to this stage, you've unknowingly granted the attacker access to your crypto. They'll make a swift getaway with your funds, using sneaky tactics like mixers and multiple transfers to cover their tracks. Once your assets are gone, they're as good as vanished.
More detailed analysis of asset transfer transactions -
https://research.checkpoint.com/2023/the-rising-threat-of-phishing-attacks-with-crypto-drainers/
https://threadreaderapp.com/thread/1625575810823294976.html
Now, onto wallet practices:
Diversify, my friends. Don’t keep all your crypto in one basket. Spread it out, keep some in hot wallets for day trading, and keep your profits safe and sound in cold wallets.
As an ad network, Persona takes security seriously. Here's how we fight back against these crypto-phishing scams:
As we wrap up, here are some key takeaways to keeping your crypto safe:
Stay Vigilant, Stay Safe: Trust your instincts and stay vigilant. If something feels off, it probably is.
Knowledge is Power: Educate yourself about the latest scams. The more you know, the better equipped you are to protect yourself.
Community is key: Lean on your crypto community for support and share any suspicious activity. Together, we’re stronger.
Adapt: Keep up with evolving security measures to outsmart scammers.
Trust, but Verify: Double-check the legitimacy of offers and platforms before diving in.
Fearless, Not Reckless: Take calculated risks, but always proceed with caution.
That brings me to the end of this piece. With awareness and caution, you can navigate the crypto landscape safely. Stay sharp, stay informed, and let’s build a safer crypto world together! I’ll see you - until next time ⛑🔐
