An elaborate new fraud campaign has been detected involving parachuted tokens, a decentralized cryptocurrency exchange, and the MetaMask wallet targeting naive cryptocurrency holders.
Airdropped tokens are tokens (or cryptocurrencies) that are generally distributed to the community by the developers of the project. This is a common practice in the blockchain industry as it allows participants to become more familiar with the project, injects a solid amount into the circulating supply to facilitate trades and publicize the project. In exchange for airdropped tokens, users are frequently asked to provide contact information and share news of the airdrop with friends on Twitter and other social channels.
A decentralized cryptocurrency exchange, or DeX, is essentially a computer program that connects 2 people who are willing to trade cryptocurrencies. In contrast to a centralized cryptocurrency exchange (CeX), which provides liquidity and requires extensive KYC (Know Your Customer) processes, DeX users provide liquidity and can be used anonymously.
A MetaMask wallet is a "hot" cryptocurrency wallet that comes in the form of a browser plugin. It is used to store coins created on the Ethereum blockchain (ERC-twenty) and is one of the most popular cryptocurrency wallets.
Drop fake tokens
Now Vice has reported that a malicious set created their coin and released it to an unknown number of MetaMask wallets. When the victim opens her wallet, she will see new and unknown coins that cost about € thirty and zero.
The coin itself is named after a site that claims to be a decentralized exchange, but is actually a phishing site. There, victims are invited to connect their MetaMask wallet so that they can exchange the coins for others, thus making a profit.
However, as soon as they connect their MetaMask wallet to the site, they have essentially given attackers access, and the funds stored there can be withdrawn.
So far, it is not known how many people have fallen into the trap.
Via: Vice