Web3 Anti-Fraud Guide: Protect Your digital asset security

In today's rapidly developing digital economy, cryptocurrencies and blockchain technology are reshaping the global financial landscape. However, this innovative and opportunity-filled field is also accompanied by various frauds and security risks. To help users better identify and avoid these potential threats, we have compiled this "Web3 Anti-Fraud Guide", which deeply analyzes the fraud methods that crypto users may encounter at different stages, and provides detailed explanations based on real cases, aiming to equip investors with practical anti-fraud skills.

This guide will gradually delve into six major themes: from identifying information sources to misconceptions in asset management, from financial traps during the trading process to phishing, and finally revealing the Crypto Drainer at the end of the fraud chain and potential OTC trading scams that may be encountered during withdrawals.

1. Be wary of unreliable information sources

Many investors initially come into contact with concepts related to cryptocurrency through social networking sites, self-media platforms, or online communities. These channels vary in quality, and even experienced investors need to sift through a vast amount of information to find valid content, making it even harder for newcomers to discern truth from falsehood. Malefactors exploit this information barrier to defraud users who lack relevant knowledge, using methods such as distorting facts, stealing account keys, and deceiving account permissions.

Common fraud methods include:

• Harmless-looking short video QR code
• False information on social media
• Using emotional needs for scams

This guide will teach you how to identify these fraudulent activities and avoid falling into traps from the very beginning.

2. Correct Asset Management Methods

Unlike traditional Web2 platforms, Web3 infrastructure such as cryptocurrency wallets does not store user identity information or account permissions, nor does it have features common in traditional internet software like logout, change binding, or retrieve identity information. This means that users need to securely manage their address keys, and if lost, they will permanently lose control over their on-chain identity, or risk having their assets stolen due to leakage.

Common fraud methods include:

• Counterfeit wallet APP steals coins
• Multi-signature Trap
• Authorization scam
• Impersonation customer service scam
• Hardware wallet manual fraud

This guide will reveal in detail how these scams operate, helping you better protect your digital assets.

3. Traps in Cryptocurrency Trading

Many novice investors are easily attracted by some seemingly enticing "high-yield" projects. However, these projects often hide risks. Here are some common misconceptions:

• Believe in the existence of wealth management projects that continuously offer ultra-high annualized returns.
• Believe that depositing idle stablecoins into certain "mining pools" can yield stable profits.
• Thought that participating in the so-called "official staking activities" would lead to easy profits.

This guide will reveal the truth behind these common scams, including:

• Fake exchange financial scams
• Pi Xiu Coin Fraud
• Scam pools impersonating well-known platforms
• Fake public chain token airdrop scam
• Liquidity Exit Scam

4. Phishing: An Increasingly Rampant Threat

Phishing is a type of attack that involves sending deceptive information to induce users to disclose sensitive information or perform malicious actions. With the development of the cryptocurrency economy, more and more fraudsters are targeting cryptocurrency holders.

This guide will focus on three common types of online fraud targeting digital assets:

• Address Poisoning
• Advertising Token
• Fake withdrawal text message

We will analyze the operating mechanisms of these techniques in depth to help you raise your awareness.

5. Crypto Drainer: Emerging Threats

Drainer is a type of malware specifically designed to illegally empty cryptocurrency wallets. This tool is rented out by its developers, making it possible for anyone to become a potential attacker.

The features of Crypto Drainer include:

• Conduct reverse analysis on mainstream cryptocurrency wallet software
• Modify specific code to obtain the target mnemonic.
• Develop a dedicated management backend to facilitate operators in transferring victim funds with one click.

Many common phishing scams are backed by professional Crypto Drainers providing technical and even operational support.

6. Risks in Over-the-Counter (OTC) Trading

In certain regions, over-the-counter (OTC) trading is the most common method for cryptocurrency investors to convert fiat to cryptocurrency. Whether on centralized platforms, online groups, or offline transactions, OTC activities carry a risk of fraud.

This guide will introduce several common OTC fraud methods:

• Exchange coin merchant fraud
• Offline transaction fraud
• Offline multi-signature fraud

Conclusion

The Web3 industry has a high technical and knowledge barrier, including understanding the technical principles, using the infrastructure, and the ability to obtain accurate information. Novices who ignore these barriers can easily fall into traps. At the end of this guide, we provide some security advice and measures to take in case of encountering fraud.

Please remember that anti-fraud is an ongoing process. As fraud tactics continue to evolve, remaining vigilant and continuously learning is key to protecting yourself. We encourage you to use this guide as a starting point to continually update your knowledge base while keeping an eye on the latest security incident analyses and interpretations of fraud techniques.

Protect your digital assets and wish you a safe exploration in the Web3 world!