Have you ever participate in or use any Decentralized Finance (DeFi) projects? If you are not familiar with the terms. We suggest you to read the following articles first.
Each day, there are new DeFi projects introduced on different blockchain platforms. Not too long ago, DeFi was made possible on the Ethereum blockchain, followed by the Binance Smart Chain. Today, other blockchain platforms offer better capabilities and services.
The Dusting Attack + DeFi
Dusting attacks usually referring to receiving random cryptocurrency from an anonymous address. In intention for the receiver to transfer use, it and the sender will be able to steal the receiver’s credentials by any means.
While in DeFi, the victims will receive an airdrop with a generous amount of unknown cryptocurrency and need to use a decentralized exchange (DEX) to withdraw or swap the coins. For example, Alice received 500,000 FAKE coins from an anonymous address.
Alice will have to access a DEX that allows the FAKE coins to get liquidated. Then, Alice visited the DEX and connecting it with her crypto wallet.
Usually, that is the standard procedure for any DeFi site. However, in this case, the site asked for extra permission or details from Alice. The details are usually her crypto wallet passwords, seed phrases, or logins to other websites.
In the hope of liquidating her FAKE coins, Alice exposed her sensitive information. Such mistakes will allow her attackers to drain her crypto wallet and steal her login credentials.
How to stay safe?
Blockchain technology allows transactions to be transparent and accessible to everyone. However, it invites scammers to find their next target. DeFi uses blockchain and utilizes smart contracts. Therefore, a user must understand the risks of using it.
Moreover, a user is 100% responsible for their crypto wallet in terms of security and safety. It is like being responsible for running your bank.
If you receive airdrops that you are not expecting or are wary of, be vigilant. It is always necessary to do extra research to avoid being a victim and lose all your money.
If something is too good to be true, it probably is. So, stay safe!