Amid the rising demand for digital currencies and NFTs globally, there is also a continuous surge in hacking and scam cases in the industry.
Moreover, over the past few years, nonfungible tokens and digital assets have become a hotspot for many scammers given the growing popularity of these tokens, such as Bitcoin and Ethereum.
A similar case has once again struck the industry, as it loses another $300K to certain scam websites.
The ongoing scam cases in the crypto ecosystem continue to highlight the need for extra caution from investors. Nevertheless, authorities are doing enough to put these criminal activities in check.
$300,000 Lost To Scam Websites From Blur
The Blur platform is already making waves in the NFT marketplace industry within a few months following its launch.
Its trading volume has already seen a significant rise, particularly after the three-phase airdrop program of the platform.
It distributed about 10% of its total supply to the community in response to their trading activities during the February 14 token airdrop scheme it organized.
The initial airdrop scheme of the platform occurred before the main launch of the marketplace in October 2022.
During the period, Blur awarded individuals who engaged in NFT trading on the Ethereum network with digital tokens.
In the second airdrop program, the Blur team rewarded individuals who listed nonfungible tokens before December 6, 2022.
The third scheme involved the release of tokens to any user who placed bids on the Blur platform following its feature live launch.
The promising programs of the platform have created awareness in the NFT ecosystem, as many people await the next airdrop program from Blur.
While this is a generous act from the platform, it has also alerted scammers of opportunities that could arise from the programs.
As such, some bad actors have taken it upon themselves to create means through which they can secretly acquire funds from users.
According to the report, the scammers created fake airdrop links that redirect users to malicious websites, whereon they can seize their tokens.
As per data from the security extension of the Ethereum-based Web3 browser, the culprits had already realized more than $300K from 24 fake websites from February 15 to date.
Users should be aware of these websites, as a few of them are still active and pose threat to further theft.
Details On The Working Process Of The Websites
Primarily, the websites function through the use of smart contracts. The smart contracts are responsible for the transaction prompt, demanding users to link their ETH wallets.
After performing this action, all the ETH holdings of the users automatically move to a designated address.
Seeing the growing cases of fraudulent acts in the crypto and NFT spaces, marketplaces such as Blur could implement certain tools like TrustCheck to monitor activities within the ecosystem.
Generally, tools like TrustCheck automatically identify strange activities on websites and with online transactions.
Also, they warn Web3 users of the lurking dangers of fake smart contracts and websites, such as the case of Blur.
With the growing trend of fraudulent activities, crypto investors should be apt and more cautious when venturing into any investments.
