Hackers create their own crypto to use in elaborate phishing scams

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An elaborate new fraud campaign involving dropped tokens, a decentralized cryptocurrency exchange, and the MetaMask wallet has been spotted targeting naive cryptocurrency holders.

Airdropped tokens are tokens (or crypto coins) that the project developers distribute to the community at large. This is a common practice in the blockchain industry, as it allows participants to become more familiar with the project, injects a solid amount into the circulating supply to facilitate exchanges and raise awareness of the project. In exchange for parachuted tokens, users are often asked to provide contact details and share news of the airdrop with friends on Twitter and other social channels.

A decentralized cryptocurrency exchange, or DeX, is essentially a computer program that connects two people who are eager to trade cryptocurrency. Unlike a centralized cryptocurrency (CeX) exchange, which provides liquidity and requires extensive KYC (Know Your Customer) processes, DeX users are the ones who provide liquidity and can be used anonymously.

A MetaMask wallet is a “hot” cryptocurrency wallet that comes in the form of a browser add-on. It is used to store coins built on the Ethereum blockchain (ERC-20) and is one of the most popular cryptocurrency wallets.

Dropping fake tokens

Now Vice has reported that a malicious group created their own coin and dumped it in an unknown number of MetaMask wallets. When the victim opens their wallet, they will see new and unknown coins costing around $ 30,000.

The coin itself is named after a website that claims to be a decentralized exchange, but is in fact a phishing site. There, victims are invited to connect their MetaMask wallet so that they can exchange the coins for others, thus making a profit.

However, as soon as they connect their MetaMask wallet to the site, they have essentially given attackers access and any funds stored there can be withdrawn.

So far, it is not known how many people have fallen into the trap.

Street: Vice

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