The cryptocurrency community on Facebook has recently seen a rise in scams involving fake logins to steal gas fees. Scammers intentionally provide or “accidentally” reveal the 12 secret characters, also known as the seed phrase, which grants access to wallets holding large amounts of money. A common scenario involves asking someone to log in to withdraw money from the wallet and offering an attractive reward in return.
“Many people think that having the seed phrase will allow them to control and withdraw money from the wallet, so they log in immediately. However, to withdraw money, you first need to deposit gas fees,” explained Mr.Raymond, an analyst and researcher of Web3 projects. For example, with wallets on the TRON network, users need to deposit TRX tokens, while BSC network wallets require BNB tokens.
According to Mr.Raymond, wallets used for this type of scam always have bots continuously scanning transactions. Whenever a user deposits gas fees, the bot will detect and automatically transfer it out immediately, causing the wallet to always lack sufficient fees for transactions. Additionally, most of these wallets operate as Multisig wallets – a type of cryptocurrency wallet that requires two or more private keys to sign and send a transaction. Therefore, even if users successfully access the wallet, they still won’t be able to withdraw any money.
Related: What is Multisig Wallets?
Gas fees for blockchain transactions are usually not very high, but this method can help scammers earn a large amount of money by tricking many victims or operating on a large scale. Especially when seed phrases are publicly shared in groups, many people, afraid of missing out and thinking others might log in and take the money first, quickly make transactions without caution.
Having received requests for assistance from many members of the cryptocurrency community regarding this issue, Mr.Raymond noted that some victims thought the transaction failed and deposited money multiple times, losing a lot of money.
We warn that schemes offering large sums of money easily often carry risks, especially since cryptocurrency transactions are not yet legally protected. For digital wallets, the recovery phrase or private key is always a crucial security factor, so they should not be shared, and wallets with exposed seed phrases should not be used.”
That’s true do this do happen a lot on Facebook
Anyone’s falling for this stupid kind of scam did so out of greed and should not complain at all.
Why would you log in to another’s wallet in the first place.
This generation is messed up morally.