Digital

Beware of the Sleepdrop Scam: Forta Network Uncovers a Deceptive Cryptocurrency Scheme

Picture Source: BeInCrypto

Members of the Forta network have recently identified a new form of cryptocurrency scam known as the “Sleepdrop.” This fraudulent scheme has targeted numerous users, luring them into unwittingly participating in deceptive transactions. The Forta network, a Web3 security solution and real-time detection network, has issued a warning about the Sleepdrop, urging cryptocurrency enthusiasts to exercise caution. This article sheds light on the workings of this insidious scam and emphasizes the importance of vigilance in the face of evolving crypto-related threats.

The Sleepdrop Scam Unveiled:

The Sleepdrop scam operates by exploiting unsuspecting users’ wallets through unexpected tokens appearing from seemingly legitimate contracts. Bad actors employ techniques reminiscent of “sleepminting” used in NFTs but specifically target ERC-20 tokens. Tokens from reputable platforms like Uniswap, Chainlink, Lido, and Circle have all been impersonated by these scammers, amplifying the risk to users.

Deceptive Tactics:

To deceive users, the scammers airdrop fraudulent tokens to multiple individuals, creating an illusion that these tokens originate from authentic contracts. When users connect their wallets to a website, they unknowingly sign a transaction that seemingly links them to a decentralized application (Dapp). However, this transaction invokes the connect function of the contract, leading to the transfer of a small amount of ETH. Subsequently, scammers employ an ice phishing attack to coerce victims into exchanging their new tokens with the genuine tokens. As a result, the smart contract stealthily siphons ETH from the victims’ wallets.

Forta’s Response and Bounty:

Forta, the Web3 security solution and real-time detection network, was the first to identify the Sleepdrop scam. In response, the Forta community has compiled a list of addresses associated with Sleepdroppers and identified scam URLs that pose a risk to users. Furthermore, Forta has announced a bounty to detect Sleepdropping, with the Forta Foundation covering the initial Bot deployment costs, including staking. The prize will be paid out in the FORT token, incentivizing the community to actively participate in identifying and preventing this fraudulent activity.

Expert Insights and Cautionary Advice:

Ivan Spanier, a member of the Forta Foundation and discoverer of the Sleepdrop scam, has highlighted the uniquely insidious nature of this fraudulent scheme. Spanier emphasized that interacting with a Sleepdrop contract almost always results in a drain of native tokens. He advised users to only claim airdrops from verified contracts and official sites and cautioned against any interaction with airdropped tokens, even if they appear to be sent by official teams. Vigilance and skepticism are crucial to protecting oneself from falling victim to such scams.

Cryptocurrency Crime Statistics:

While the Sleepdrop scam is a concerning development, it is essential to maintain perspective regarding the overall security of the cryptocurrency space. According to the 2023 Chainalysis Crypto Crime Report, illicit transaction volume reached a record high of $20.6 billion in 2022, marking the second consecutive year of growth despite market downturns. However, it is noteworthy that illicit activity in the cryptocurrency space accounts for less than 1% of total transaction volume. Furthermore, the proportion of crypto-related crime is actually decreasing over the long term.

Conclusion:

The emergence of the Sleepdrop scam highlights the ever-evolving nature of cryptocurrency-related fraud. With scammers employing deceptive tactics and impersonating reputable tokens, it is crucial for users to exercise caution and remain informed about potential threats. Forta’s proactive response and the community-driven bounty exemplify the collaborative effort required to counter such scams. By staying vigilant and adhering to expert advice, cryptocurrency enthusiasts can mitigate the risks and ensure a safer environment for all participants in the digital asset space.

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