HOW SCAMS OPERATE IN WEB3
Web3 scams often exploit the decentralized, pseudonymous, and often irreversible nature of blockchain systems. Here are the most common types of Web3 scams and how they typically operate
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🕒 9:25 AM
📅 Jun 20, 2025
✍️ By faultybaba
Web3 possible scams are as follows:
1.Phishing Scams:
Scammers trick users into revealing their private keys, seed phrases, or signing malicious transactions by:
i. Sending fake emails or DMs posing as trusted services example MetaMask, OpenSea.
ii Creating fake websites that look like real ones.
iii. Embedding malicious pop-ups or wallet connection prompts in dApps.
As a result:
Once access is gained, assets are instantly drained from the victim's wallet.
2. Pump and Dump Schemes
Organizers artificially inflate the price of a low-liquidity token using: Fake hype, Insider buying, Paid influencers or bots.
Unsuspecting users buy in, and then the insiders “dump” their tokens for profit, crashing the price.
3. Smart Contract Exploits
Attackers exploit vulnerabilities in DeFi protocols, DAOs, or NFT marketplaces using:
Reentrancy attacks, Flash loan attacks, and
Logic flaws in poorly audited contracts
As a result:
Millions can be stolen without needing access to individual wallets.
4. Sybil Attacks & Identity Farming
In systems that reward users (e.g., with airdrops or governance power), attackers create thousands of fake identities to:
Manipulate governance and
Capture large amounts of rewards.
How to Protect Yourself in Web3:
1. Use a hardware wallet for large funds.
2. Don’t sign transactions blindly — always check what you're approving.
3. Avoid unsolicited messages and links.
4. Use tools like revoke.cash to remove risky approvals.
5. Stick to audited projects with real teams and open-source code.
6. Verify URLs — bookmark official websites
7. Never share your seed phrase or private key.