Staking Scams

Following the frequent seen airdrop scams, staking scams becoming the easiest way to scam in the bear market. The reason is the bad market performance inhibits the demand of users to make profits through trading. Seeing the coins in their hands depreciating, it is better to stake coins into the mining pool to earn some interest. Therefore, scammers take advantage of the psychology that most players have and design a high rebate staking scam.

What are the scam methods of staking?

Staking is different from spending a lot of money to buy hardware mining machines before mining. The former only requires that you have coins in hand . You can deposit in a mining pool to earn interest. It is evolved from the pledge of interest on DeFi lending platform, which fully lowers the threshold of users being scammed.

But the vast majority of scams still can’t escape the sentence “you want interest, the scammers want your principal”. This kind of staking scam usually has two kinds of fraud logic:

1. Robbing Peter to pay Paul. In the early stage, high interest is used to lure people to deposit tokens. After a certain amount of money is accumulated, all users’ assets will be embezzled, the projects publish notice of shut down, and they run away.

2. Over- authorization. Staking needs to connect the wallet, once you grant the authorization, the project party can use unlimited authorization to transfer all your on-chain assets, it’s the same as previously airdrop scam, DApp connection scam, only the bait is different.

Take this scam website as an example:

The site promises interest rates as high as 6%-10.5% per day to entice users to authorize the site and steal their assets. There are also a number of well-known blockchain projects listed in the section of partners. This information is also an inferior way for scammers to gain people’s trust. It should not be taken as a “legitimate” project.

Finally, BitKeep reminds everyone to not open any website links sent to you by strangers, let alone use your BitKeep wallet to connect to these websites, otherwise it will lead to private key leakage or excessive authorization, and eventually all the assets on-chain will be stolen. If you receive private messages with such high interest by unknown group members, you can report them to BitKeep admins.

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