Stay Safe from Zero Transfer Scams: Binance’s 20 Million USDT Loss
• Binance recently became the target of a zero transfer scam.
• The scam attempts to trick the victim into sending assets to an address similar to their last transaction.
• This article explores how this scam works, who is at risk and how to protect yourself.
What Is a Zero Transfer Scam?
A zero transfer scam is a malicious attempt to get people to send assets to an address similar to the one they last interacted with by sending zero-value transactions. This exploit takes advantage of “TransferFrom” function in token contracts, which allow users to send assets from another person’s address as long as it is within a limit allowed by the address. In some token contracts, this limit is set as a number: zero. As such, attackers can initiate a transaction from another user’s address without their permission.
Who Is At Risk?
All cryptocurrency users are potentially at risk from these scams. Even experienced crypto operators like those working at Binance can be fooled by scammers using these tactics. To make matters worse, scammers are constantly coming up with new ways of exploiting vulnerabilities and creating new scams that can be difficult for even experienced users to spot or defend against.
How Can You Protect Yourself?
The best way you can protect yourself from becoming the victim of a zero transfer scam is by double-checking all addresses before you enter them into your wallet or exchange account and ensuring that they match exactly what you think they should be. You should also always check your transaction history regularly and report any suspicious activity immediately in order for exchanges or token projects to take action quickly if necessary. Additionally, it is important that users keep their private keys secure and never share them with anyone else. Finally, staying up-to-date on news about security concerns in the industry will help you stay informed about potential risks so that you can take appropriate measures when necessary..
What Happened To Binance?
On August 1st , Binance nearly lost 20 million USDT after falling victim to a zero transfer scam . However, quick reaction enabled the firm to get Tether (USDT) frozen before any funds were moved . Despite having experienced personnel operating on its platform , Binance was still not able to avert this attack completely .
Conclusion
Cryptocurrency users must remain vigilant when it comes to protecting themselves against scams like these . By double-checking all addresses before entering them into wallets or exchanges , staying up-to-date on news regarding security concerns in the industry , keeping private keys secure , and reporting suspicious activity immediately , users can do their best do protect themselves from becoming victims of fraud .
