• Mon. Jun 17th, 2024

How “Smart Contracts” Steal Crypto Wallets is a New Sort of Theft Occurring on the Network

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ByMarcel Bich

Aug 30, 2023
"Smart Contracts" Spark New Crypto Wallet Theft
Marcel Bich
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The FBI warns prospective purchasers of non-fungible tokens (NFTs) about the danger of scam websites that use fictitious “smart drainer contracts” to covertly steal cryptocurrency wallets. In order to transfer digital assets—in this case, NFTs and cryptocurrencies—into their wallets without the owner’s knowledge, “smart drainer contracts” are software codes that incorporate flaws or weaknesses.

Promoted actively through hijacked accounts of well-known NFT developers or accounts made to look like actual ones, sites posing as legitimate NFT trading platforms. These accounts frequently use words like “limited quantities” and “surprise” in their posts to convey a sense of urgency.

How Does it Work?

False websites encourage users to link their bitcoin wallets and purchase NFTs. The transfer of users’ cryptocurrency and NFTs to wallets under the control of criminals occurs as a result of users’ unintentional connection of their wallets to the drainer contract, the FBI advises.

After committing a successful theft, con artists frequently “launder” the taken property through a network of cryptocurrency exchanges or specialized services, blending it with the property of others to obscure its true location. 

The Security Measures

The FBI warns potential buyers of NFT to be vigilant and take the following safety measures: research NFT offers when they come as a surprise, confirm the legitimacy of social media accounts used for advertising, carefully review websites that let users connect their cryptocurrency wallets, and pay close attention to any offers that include NFT as a reward. Anyone who has been a victim of such fraudulent schemes or suspects fraud is encouraged to file a complaint with the FBI Internet Crime Complaint Center.

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Marcel Bich

Marcel ‘s passion for the world of cryptocurrencies and his comprehensive knowledge of blockchain technology make him an invaluable asset to our team. He stays updated on the latest trends, regulations, and emerging technologies in the crypto space, ensuring that our audience receives accurate and up-to-date information.