Web3 Anti-Fraud Guide: Protect Your digital asset security

In the era of the digital economy, cryptocurrencies and blockchain technology are playing an increasingly important role in the global financial system. However, this field, full of innovation and opportunities, also presents various fraud and security threats. To help users better identify and avoid these potential risks, we have compiled this "Web3 Anti-Fraud Handbook," which analyzes real cases and delves into the fraud methods that crypto users may encounter at different stages, aiming to provide investors with practical anti-fraud skills.

This manual is based on extensive frontline experience and case analysis, providing an in-depth study of the psychology of victims, the common tactics of criminals, and the types of scams prevalent in the cryptocurrency space. We will discuss six major themes in depth, from the identification of information sources to the pitfalls of asset management, from financial traps in the trading process to phishing, and finally to Crypto Drainer and over-the-counter trading scams, comprehensively revealing the fraud risks in the Web3 world.

1. Be wary of unreliable information sources

Many investors first come into contact with concepts related to cryptocurrency through social media, self-media platforms, or online communities. These channels are full of mixed information, and even experienced investors need to sift through a lot of noise and rumors to find valid information, not to mention inexperienced beginners. Criminals take advantage of this information barrier to defraud users who lack relevant knowledge, using methods that include distorting or fabricating facts, stealing account keys, and deceiving account permissions.

Fraudulent methods that deserve attention include:

• Hidden malicious QR codes in short videos
• The spread of false information on social media
• Use emotional needs to scam

These seemingly harmless means often hide deadly traps, exploiting people's curiosity, trust, and emotional needs to lure investors into traps.

2. Avoid Incorrect Asset Management Methods

There is a fundamental difference between Web3 infrastructure and traditional Web2 platforms. Web3 tools such as cryptocurrency wallets do not retain user identity information and account permissions, nor do they have common features such as account cancellation, account binding, or identity information recovery. This means that users need to manage their address keys on their own; once lost, it will lead to a permanent loss of control over their on-chain identity, or theft of assets due to leakage.

Common asset management-related frauds include:

• Fake wallet applications steal funds
• Multi-signature transaction fraud
• Authorization Scam
• Impersonation Customer Service Scam
• Hardware wallet manual fraud

These scams often take advantage of users' lack of understanding of blockchain wallets, tricking them into revealing their mnemonic phrases, private keys, or wallet operation permissions in various ways, thereby stealing their assets.

3. Traps in Trading

During the cryptocurrency trading process, investors need to be wary of various seemingly enticing but actually dangerous "opportunities":

• High-yield exchange financial products
• Pixiu Coin Fraud
• Fake mining or staking activities of well-known exchanges
• Liquidity exit scam

These scams often exploit investors' pursuit of high returns, luring them to invest funds, ultimately resulting in asset loss.

4. New Forms of Phishing

With the development of the crypto economy, traditional phishing methods have also started targeting cryptocurrency users. Common phishing methods include:

• Address poisoning
• Advertising Token
• Impersonating official clearance text messages

These methods typically target unspecified objects' digital assets, attempting to lure users into disclosing sensitive information or performing insecure actions.

5. Crypto Drainer: A Specialized Tool for Theft of Digital Assets

Crypto Drainer is a type of malware specifically designed to illegally drain cryptocurrency wallets. Such tools are often provided by professional developers as a rental service, allowing anyone to pay to use this malicious tool.

Features of Crypto Drainer:

• Conduct reverse analysis on mainstream cryptocurrency wallet software
• Modify specific code to obtain the target mnemonic
• Develop a dedicated management backend to facilitate the operation of stolen funds.

Behind many seemingly simple phishing scams, there are often professional Crypto Drainers providing technical and even operational support.

6. Risks in Over-the-Counter Trading

Over-the-counter (OTC) trading is a common method for cryptocurrency investors in many regions to convert fiat currency to cryptocurrency. However, whether on centralized platforms, online groups, or offline transactions, OTC activities carry the risk of fraud:

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

These risks may lead to the loss of fiat or cryptocurrency funds, and even threaten personal safety.

Conclusion

The Web3 industry has a high technical and knowledge threshold, and blind confidence often leads newcomers into traps. Staying vigilant and continuously learning is key to protecting oneself from fraud. We recommend using this manual as a starting point, constantly updating your knowledge, and keeping an eye on the latest security incidents and fraud tactics.

Anti-fraud is an ongoing process, and fraudulent methods are constantly evolving. I hope this guide can help you explore and invest more safely in the Web3 world.