Ethereum’s transition from Proof-of-Work (PoW) to Proof-of-Stake (PoS) is, undoubtedly, the most significant upgrade to the protocol since its inception. Broadly referred to as “The Merge”, it is one of the most anticipated events in the crypto space in 2022.
The merge is due in September 2022 under a ‘soft’ schedule and barring any unforeseen circumstances.
To know all about it, please take a look at our detailed article on this subject.
The closer we get to that date, the more bad actors are trying to take advantage and dupe people with their money. Here are some very popular types of scams that one should be aware of, especially as the merge draws near.
phishing scams
Phishing scams are one of the oldest tricks in the book, and with a phenomenon publicized as The Merge, you can expect them to skyrocket.
For those unaware, phishing scams attempt to steal money from your wallet by providing fake but incredibly well done signals that look like the originals. The most common example is a phishing email or any other type of message you receive online asking you to click on links that redirect to fake websites. In most cases, they will ask you to either input your seed phrase or sign wallet permissions, which will essentially cause the hacker to launder your funds.
Others may ask you to inadvertently install some kind of software that will become malware and infect your computer, thus giving scammers access to your files.
As a general rule of thumb, especially with regard to opening email from unknown senders, you should:
- Never provide personal information or passwords (including seed phrases) to anyone
- Quickly delete emails from unknown senders
- Never open an attachment or link to an email address you don’t recognize
Beyond that, you should also be aware that scammers are getting more and more elaborate in their ways to access your funds, so being extra alert is of the essence.
airdrop scam
Airdrop scams are likely to run rampant as we get closer to the merge dates. Know this:
There is no official airdrop confirmed by the Ethereum Foundation.
The way these scams work, bad actors will send some tokens to your wallet. From there, some wallets are going to reflect their value and you might be surprised to see that you have some tokens worth thousands that you have never seen before.
This is where the scam begins as you may be prompted to sign in with your Ethereum wallet and approve the transaction when attempting to claim your airdrop. What this does is essentially giving scammers control of your keys.
It has another option where you have to sign a transaction that actually sends money to the scammer’s account.
ETH2 Token Scam
Just as there is no official airdrop confirmed by the Ethereum Foundation, there is no ETH2 token either. There will never be another token that will be offered with The Merge.
Anyone who wants you to invest, trade, mine, stake, or what not – in any way – is trying to scam you.
As we mentioned in our detailed article, users do not have to swap any of their ETH for the merge.
Of course, it is also worth noting that there are legitimate derivative tokens that could represent ETH at stake. In the case of ETH, bets are placed on Lido’s platform, which is called STTH. Binance and Coinbase also have their options.
This particular scam is very closely related to the next one on our list…
support scam
Support scams are very common in the cryptocurrency industry and they, like most scams, target people who are not crypto-native and without sufficient knowledge of the industry.
For example, there have already been cases where people contacted a Twitter account called “Ethereum Support”. They will fish for certain details, which often include private keys, seed phrases or passwords. They are also sometimes required to give the user remote access to their computer, and so forth. The goal is very clear – to rid you of your possessions.
As a few key points here, you should:
- Never share your password or seed phrase with anyone.
- Never give anyone remote access to your computer.
- Never communicate with anyone outside the specified channels.
As a general rule of thumb, no support team will ever extend First Contact and they certainly won’t ask for any personal details, especially seed phrases or passwords.
mining pool scam
Ethereum currently uses a proof-of-work consensus algorithm, which means that ETH is mined just like BTC, for example. Therefore, it is quite likely that many bad actors will be trying to take advantage of this and scam the unsuspecting victims out of their funds through mining pool scams.
For example, scammers can claim and stay in contact with the victim for as long as they believe they should join an ETH mining pool. If the user sends a small amount, they may even see them generating some profit – this is done to entice them to send a larger amount. Once this is done, there is a possibility of scammers sending funds to an unknown address, never to be heard from again.
As an important point to remember here, you should:
- Be aware that most of these offers are not valid. If they were, they would have reached the mainstream by now, and you would have heard of them.
- Do an in-depth research about liquidity pools, staking and mining before investing your funds.
- Be extremely wary of anyone contacting you about making money with your crypto.
conclusion
To sum it up, it is imperative to understand that big events like this often attract bad actors. This will certainly increase scam attempts and underestimating how creative and elaborate hackers are is the biggest mistake you can make.
In addition to the above, it is highly advised that you employ rigorous security management for your crypto in general.
these 9 tips To secure your crypto wallet it is a must to follow.
You should also establish these habits as soon as possible. There is a possible saying in the industry:
“Protect your crypto like it’s worth $100 million because one day – it might.”
PrimeXBT Special Offer: Use this link to register and enter code POTATO50 to get up to $7,000 on your deposit.