Identifying and Protecting Yourself from Common Crypto Scams

It seems as though more and more scam sites and accounts are popping up mimicking legitimate crypto projects. These scam accounts invite users to connect their crypto wallets to websites to receive token airdrops or NFTs, and once connected, the sites trick users into signing Ethereum contracts that allow the wallets to be drained.

According to a recent article by Chainalysis, crypto crime is relatively small at 0.24% of all crypto transactions, but it’s still a $20 billion problem, and when it affects you, it doesn’t feel small.

Those of us who’ve been in the industry for a while have seen many types of scams come and go. We all know at this point not to give out our wallet seed/recovery phrases, but scammers are getting more clever by mimicking legitimate projects, and even seasoned veterans can fall prey.

Scammers will create fake websites, fake Twitter accounts, fake Telegram groups, and even impersonate crypto project team members to lure unwary token holders to part with their funds.

Fake Social Media Accounts

Below are some recent scam Telegram accounts and groups that have appeared mimicking our Lattice Exchange account. Since Lattice is a platform that actually does distribute rewards requiring users to connect their wallets, scammers have created fake accounts leading users to a fake version of the Lattice website where their wallets are drained.

On Twitter, it is common for scam projects to copy legitimate project accounts, as is the case with the Alkimi Exchange account shown below. Slight misspellings are commonly used for fake accounts that are difficult to catch at first glance.

As shown in the example below, the scam account on the left has replaced the last i in “Alkimi” with a lower-case L in the account name. The copycat Twitter account links users to a scam website offering a free airdrop that will drain any wallet that connects to it.

Pro Tips for Crypto Site and Social Media Security:

• Always check a reputable source like Coin Market Cap (CMC) or Coingecko to find the official websites, social media accounts, and contract addresses for a project. Click the links directly from these sites to ensure you have the correct accounts. Once you have the correct website, you can also click social media account links from there.
• Reputable Telegram groups will not add you without permission. If you see “Report Spam and Leave” at the top of a crypto group that looks like a project group account, it is most likely a scam group.
• Set your privacy privileges in your Telegram account so that only your contacts may add you to a group.
• On Telegram, project team members and admins will usually never direct message you first. In fact, many admins will include “Will never DM first” as part of their contact name in Telegram. If someone claiming to be a group admin or team member reaches out to you to “help” you or give you support, it is very likely a scammer.
• On Twitter, make sure the project account is verified with a blue (or gold) check mark. This means that the project has successfully completed Twitter’s KYC process and are who they claim to be. If there is no verified account, then look up the project on CMC or Coingecko and find the correct Twitter account in the Community links area.

Connecting Your Wallet and Signing Ethereum Transactions

When connecting your crypto wallet to mint NFTs or receive airdrops on Ethereum, the network requires you to sign a transaction giving the Ethereum network approval to interact with your wallet. However, do you know what you’re actually approving by signing the transaction?

Here is a very helpful article which provides details on the three main types of Ethereum transactions you can sign and what each gives the network permission to do.

However, If you aren’t that technically savvy, then the easiest rule to follow is shown in the tip below.

Pro Tip for Wallet Security: Create a separate wallet address with an empty crypto balance when connecting your wallet to any new website.

Most crypto wallets support multiple Ethereum addresses, and even if one is compromised by signing a fraudulent transaction, scammers cannot access the other addresses in your wallet.

Ask for Help

There are many wonderful things about crypto self-custody as long as you stay vigilant, confirm the validity of crypto websites and social media accounts, and take care when connecting your wallet.

And if you’re ever in doubt, reach out to valid crypto community groups and ask for help. Crypto community members can be great supports for one another, and admins are usually quite happy to help group members stay safe and avoid scammers.

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Important Links:

• List your Project for Funding on Lattice Launchpad: Apply here
• Participate in our Launchpad
• Join the Lattice Community on Telegram
• Follow Lattice on Twitter