Scammers' Favorite: Meme Coins! Trendy Scam Tactics,

Indra55

Recently, Blockfence, an infrastructure company focused on security protection, released a shocking investigative report revealing a large-scale cryptocurrency scam that began in April of last year. The scam, operated by a single entity, successfully issued over 1,300 counterfeit tokens, stealing over $32 million and affecting more than 42,000 investors.

The report indicates that the entire scam appears to have been meticulously planned by a single individual or organization, with many operations seemingly executed automatically. The token names look like random combinations of words generated by AI, and from setting up the liquidity pools for token creation to the final fraudulent activities, much of the process appears to be automated.

The fraudsters cleverly exploited the Fear of Missing Out (FOMO) psychology, creating counterfeit tokens for cryptocurrency companies and projects that had not yet been launched. They attracted investors by injecting false trading volume, convincing victims that these projects were profitable investment opportunities and luring them into making purchases. Ultimately, the scammers cashed out the tokens, repeating this process continuously. Moreover, to avoid drawing too much attention, the fraudsters typically earned only 5 to 20 ETH from each fraudulent token.

Remarkably, the scammers managed to evade detection by advanced security tools. Despite the smart contracts of these tokens seemingly passing multiple security checks, the scammers actually set up various potentially dangerous functions in the contracts. These functions included the maximum supply of counterfeit tokens, the ability of token owners to destroy tokens owned by others, unlimited minting permissions for administrators, locking LP tokens, hiding contracts, and relinquishing contract ownership.

The report concludes by emphasizing that investors should increase their vigilance and take proactive steps to protect themselves. To invest safely in the cryptocurrency market, here are some practical recommendations:

In-depth research: Conduct thorough background checks before investing in any cryptocurrency. Understand the token's background, team, whitepaper, development roadmap, and market response.
Multiple verification tools: Do not rely on a single security tool. Use a combination of anti-fraud detection and analysis tools for comprehensive protection.
Avoid blindly following trends: Don't rush to invest due to FOMO. Scammers often exploit investors' desire for quick profits in their schemes.
Use hardware wallets: To enhance security, it is recommended to use hardware wallets to store cryptocurrencies and reduce the risk of hacking attacks.

Iti9

Everyone, still be cautious about managing the safety of your funds.

Jatin255

It's still necessary to be more cautious on our own.

Jiger955

This is still very practical.

Jayne94133

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