Crypto Scam Report Shows Web3 Experienced 15 New Fraudulent Smart Contracts

Solidus Labs functions to carry out crypto operations based on the crypto-native T3 (Triple T) market integration solutions (MIS). These market solutions include threat intelligence, monitoring of transactions, and trade surveillance.

Its primary mission is to ensure the safety of crypto transactions and investments throughout all decentralized finance (DeFi) and centralized markets. Solidus Labs, situated in New York, United States, began its actions in 2017.

In the meantime, there are about 12 leading blockchains under the company’s radar to detect possible theft or fraudulence cases. The need to monitor and carry out threat surveillance in the crypto industry is necessary, considering the high possibility of scams.

Most of the scam cases detected came from a crypto exchange platform’s chain known as BNB Chain. Besides this, more cyber threats keep arising, and recently, the Web3 system has detected 15 new scam cases.

Major Information On The Scam

Solidus Labs has detected around 188,525 scam cases dating. The cases reported came from some blockchains among the 12 monitored blockchains. These blockchains include BNB Chain, Polygon, and Ethereum.

According to Kathy Kraninger, there were several scam cases that Solidus Labs failed to identify. This is evident from the company’s data. Meaning that there’s a need for extra effort from the firm as scam cases are snowballing. Kathy Kraninger is Solidus’s regulatory affairs vice president and former U.S Consumer Financial Protection Bureau, director.

Scam Percentage Per Token

According to the company’s data, the BEP-20 tokens had the highest recorded cases. In addition, these tokens operate on the BNB Chain, giving the blockchain about 12% of the detected cases.

The company stated that the percentage of scam tokens on the Ethereum blockchain, ERC-20, was 8%, following that of BEP-20. Moreover, around $910 million worth of ETH tokens were lost to the scam case. The report had it that the transactions occurred on regulated and centralized crypto exchange platforms.

Idea Behind Crypto Scam

Based on the Solidus report, the objective and mission of the culprits were relatively straightforward. They aim to deprive investors of their assets using hard-wire mechanism. To achieve this purpose, they lure investors to invest their funds in tokens that have no future but appear to.

The system used for this operation is automated. Primarily, the scammers repeat the process of the contracts. This process enables scammers to access organizations like exchanges, authorities, and regulators.

According to Chainalysis, an analytic firm, investors need to be careful regarding their transactions in the crypto ecosystem. This is because crypto theft cases can come in different ways, excluding scamming.

There are also chances of hacking into investors’ accounts, particularly those with little knowledge about crypto.

Featured image from Pexels, chart from TradingView.com