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Maybe a bit general question, but how do you make sure that you are not getting scammed? Which programs do you use for making transactions? Some people are sending screenshots that look legit, and then people get scammed this way. What are some signs to look out for?

3 Answers 3

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General Tips to Avoid Web3 Scams

1. Verify Contracts and Wallet Addresses:

  • Use audited smart contracts.
  • Double-check wallet addresses before transactions.

2. Use Reputable Platforms:

3. Secure Your Wallet:

  • Utilize hardware wallets (Ledger, Trezor).

  • Keep seed phrases and private keys offline and secure.

  • Never use your private key anywhere in plain text ever.

    Even avoid using it in .env files, instead use it in some encrypted format (like in .env-enc file) or via keystore file (like in foundry cast wallet).

    Patrick Collins, a well-known instructor in Web3, has been encouraging this a lot lately. You can refer to his post regarding the same.

4. Beware of Phishing Attempts:

  • Access websites directly or via bookmarks. Avoid using a website without verifying its domain, as there are a lot of phishing websites these days. You can see the Avalanche Core website is showcasing the warning regarding the same on top of their website.

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  • Verify communications through official channels. There are various persons/groups impersonating themselves as supporting team be it on Discord, Telegram, Twitter/X, Emails, etc. Never fall for their suggestion/advice because if they're directly contacting you, then they cannot be legit for sure.

Recognizing Web3 Scam Signs

1. Too Good to Be True Offers:

  • Be skeptical of high returns with low risk, like crypto pumps, etc.
  • Beware of urgency and pressure tactics, like air-drops countdown, etc.

2. Unverified Projects:

  • Caution with anonymous teams.
  • Look for transparency in team and project details.

3. Social Engineering:

  • Verify identities of people contacting you. If it's on a social-media platform like Twitter/X or LinkedIn, then you must find mutual followers between you and the person, and even contact some of the mutual followers to ask about the identity of the concerned person so as to verify.

    You can read about a recent impersonation scam on this thread posted by ZachXBT (a well-reputed personality in Web3 security space).

  • Be wary of messages from supposed customer support asking for private information.

Practical Steps

1. Use Multi-Factor Authentication (MFA):

  • Enable MFA on all your accounts to add an extra layer of security.

2. Regularly Update Your Knowledge:

  • Stay informed about new scams and security practices by following reputable crypto news sources and communities.

    You might have heard about the recent UwU Lend hack due to the usage of liquidity pools as a price oracle. You can read more about this in this thread posted by Patrick Collins.

3. Monitor Transactions:

  • Use blockchain explorers like Etherscan or even more sophisticated tools like Tenderly to track your transactions and ensure they are proceeding as expected.

    You can refer to this thread posted by Patrick Collins on "How to do hack analysis".

So, in a nutshell, by being vigilant, using secure tools and platforms, and staying informed, you can navigate the Web3 world more safely and reduce the risk of falling victim to scams.

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Phishing emails, phony websites, and social media scams are just a few of the strategies used by online con artists to deceive victims into divulging personal information or money. Take these precautions to keep yourself from becoming a target of their schemes:

  1. Be wary of shady emails or communications: criminals frequently utilize fictitious emails or messages to trick their victims by seeming to be from a respectable business or institution. Examine the sender's email address carefully, and don't open attachments or links from unidentified senders.

  2. Avoid disclosing personal information online, particularly on social networking sites, as scammers may exploit it to obtain access to your bank accounts or steal your identity. Don't use the same password across all of your online accounts; instead, create strong, one of a kind passwords.

  3. Do your homework before making any internet purchases. Verify the website's legitimacy and go through other customers' reviews to make sure the seller is trustworthy.

  4. Ensure that your software and gadgets are up to date. Malware and viruses can be used by scammers to obtain your personal data. To defend yourself against such attacks, make sure your software and gadgets are up to date with the most recent security patches.

Change your passwords for all of your online accounts, get in touch with your bank or credit card provider, and report the scam to the relevant authorities right away if you have been the victim of an online scam. Use the internet with awareness and caution to steer clear of trouble in the future. Always remember to consider your options before divulging personal information or making purchases online. Through constant awareness, education, and initiative, we may confidently traverse the digital terrain and safeguard ourselves against being prey to con artists. Keep in mind that it's better to be safe than sorry, and in the worst situation, you can turn to roll consults limited for guidance.

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The past two answers to this question have provided some overview. I'd like to go a bit deeper by providing 2 links.

OfficerCIA Web3 Security

Casa Security Docs on User Threats to Self-Custody

Hope these help you dive further down the rabbithole.

Maintaining security is an on-going challenge in web3sec. Staying up to date on best practices in OpSec and general security when signing transactions is crucial.

OfficerCIA provides many other resources as well on his blog related to web3sec. Highly recommend reading up on his resources and following him.

While there is no silver bullet to not getting scammed, by being informed and doing due diligence on projects you connect to your wallet, you can become better equipped to handle the rapidly evolving ecosystem.

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