Unveiling Sleepdrop: The New Cryptocurrency Deception Plaguing Digital Wallets – Crypto Mode

In the burgeoning realm of cryptocurrency, a novel form of scam christened as the Sleepdrop, has recently been identified by the members of the Forta network. This scam has unfortunately claimed a considerable number of victims, primarily targeting unsuspecting users who unknowingly engage with unexpected tokens appearing to originate from legitimate contracts in their wallets. The risks these airdropped tokens pose are severe and immediate.

Raising the alarm about this escalating issue, Forta network took to Twitter last Thursday, shedding light on the Sleepdrop operation. They revealed that the scams modus operandi revolves around impersonating genuine tokens an underhanded technique resembling the sleepminting phenomenon seen with NFTs.

The prime targets, however, have been identified as ERC-20 tokens. Notable impersonated tokens include those from Uniswap, Chainlink, Lido, Circle, and others.

To weave their web of deceit, these digital charlatans airdrop counterfeit tokens to numerous individuals. This masquerade gives an impression of the tokens originating directly from the authentic contract, thereby preying on the trust of unsuspecting users.

When users unknowingly link their wallets to the deceptive website, they authorize a transaction under the guise of connecting to a decentralized application (Dapp). In reality, this transaction merely triggers the contracts connect function, initiating a minuscule ETH transfer.

The next step for these scammers involves executing an ice phishing attack, hoodwinking victims into swapping their freshly received tokens with the primary legitimate ones. The outcome is a smart contract surreptitiously pilfering ETH from the victims wallet.

Forta, the trailblazer in identifying the scam, is a renowned Web3 security solution providing a real-time detection network that scrutinizes blockchain activity. Its network comprises a decentralized amalgamation of independent node operators. These operators vigilantly scan transactional activities and block changes for potential threats.

In the wake of this discovery, the Forta community has been proactive in amassing a database of Sleepdropper addresses and scam URLs that pose a risk. The organization recently announced a bounty on Friday to incentivize the detection of Sleepdropping activities. The Forta Foundation has committed to cover the initial costs of Bot deployment, including staking, with the bounty to be rewarded in the FORT token.

The emergence of Sleepdrop is just the tip of the iceberg in the ever-evolving panorama of crypto scams. Yet, amidst the rising tide of threats, most crypto users can stay relatively secure.

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Unveiling Sleepdrop: The New Cryptocurrency Deception Plaguing Digital Wallets - Crypto Mode

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