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Scams, Hacks & Breaches
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August 12, 2024

New Crypto Scam Using QR Codes To Deceive Users Into Authorizing Wallets Spreads: Bitrace

By Mehron Rokhy

A new crypto scam utilizing QR codes to trick users into authorizing wallets is spreading, according to crypto data analytics firm Bitrace.

In a lengthy thread on the social media platform X, Bitrace says that the new crypto scam is deceiving traders by enticing them with alluring over-the-counter trades and rewards in the native asset of the layer-1 protocol Tron (TRX).

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Bitrace says that after getting the attention of a trader, the alleged scammers will make a small USDT payment as a means of gaining trust.

“Bitrace found a new type of scam where theft is carried out through a payment QR code transfer test, essentially deceiving users into authorizing wallets.

Characteristics of QR Code Scam:

  • Propose an OTC (over-the-counter) transaction.
  • Offer lower rates than the market.
  • Offer TRX as a fee for long-term cooperation.
  • Make a USDT payment to gain trust
  • Requests a small repayment test.”

Bitrace goes on to say that it conducted a test with an empty wallet to investigate how the scam works.

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“Bitrace tested the QR code with an empty wallet and was directed to a third-party website, supporting USDT transfers.

Click Confirm to interact with a phishing smart contract, at which point the wallet authorization is stolen.” 

According to the analytics platform, the alleged fraudsters scammed 27 victims out of $120,000 worth of USDT from July 11, 2024, to July 17, 2024.

Source: Bitrace/X

Bitrace recommends that investors conduct a risk check on the counterparty’s address before conducting any transactions.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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