MetaMask Scam – Crypto Fraud Combined With a Phishing Scam

With the world at their fingertips, various con artists think they can rob you blind and get away with it. Unfortunately, sometimes they do, and the financial damage they cause may be millions of dollars.

Play it safe – read about MetaMask scam operations, and keep your cryptos safe in your wallet.

What is MetaMask?

Commonly described as a gateway and shortcut to safe cryptocurrency storage, MetaMask is one of the most popular web extensions nowadays. The add-on functions as a crypto wallet and operates on the Ethereum blockchain.

Also fully functional as a mobile app, it allows users to quickly access their digital assets and invest them in decentralized markets. Both iOS and Android users can, therefore, simply install the app on their phones and allocate their digital assets how they see fit.

The Purpose of MetaMask

Various wallet functions provide users with options to interact with the said blockchain and keep an eye on their ERC-20 tokens. That means that the wallet is compatible with more crypto tokens than just Ethereum. Chainlink, Binance Coin, Tether, USD Coin, and many others belong to the same category.

Besides storing assets, users also keep their private keys safely and navigate the decentralized applications from DeFi to blockchain games. When the transaction is being performed, MetaMask uses private keys which ensures only the user has an authentic control over the action and funds being transferred.

Common Types of MetaMask Scams

Besides the usual con strategies, like financial pyramids, Ponzi schemes, boiler rooms, and romance schemes, there are those that are unique to this platform as well. Over the years, several most occurring scam strategies related to this app have developed.

Is MetaMask a scam by itself? Most certainly not, so let’s analyze the most prevalent frauds in the interest of your protection.

MetaMask Email Scam

You’ve probably heard of the infamous Nigerian prince fraud. As the years went on, the swindlers have adapted their scheme to take these forms:

• Security alerts: Third parties will send you alleged intrusion or security breach alerts, prompting you to change your username, password, or some other secure parameter. The email will contain a link to a clone site designed to fool you into thinking you’re entering your credentials into a reliable platform.
• Fake airdrops: Con artists will claim to offer limited-time offers and different cryptocurrency giveaways. Again, a link will be provided, leading to a site that looks like a legitimate platform designed to steal your secure information.
• Upgrade requests: Swindlers will allege the existence of various VIP or premium benefits on the original platform. They will ask for one-time or recurring payments to “unlock” these benefits. The offending email may or may not contain a link to an external website.

To protect yourself from this sort of scheme, always make sure the MetaMask legit email was used to send the message. If necessary, verify the email by contacting customer support.

Address Poisoning Scam

This form of strategy is completely unique to the cryptocurrency ecosystem. It involves purposely manipulating crypto wallet address data with erroneous information in order to redirect the assets to another wallet. It’s like arranging a mail drop-off to another address instead of the intended recipient.

This sort of scheme unfolds through a number of steps:

1. Social engineering – confidence tricksters will use social networks or other internet media outlets to convince the users of their legitimacy.
2. Address substitution – having gained the trust, the scammer substitutes the legitimate crypto wallet address for their own. They may do this either directly with the client or by intercepting communication through hacking.
3. Fund diversion – the trap now springs, and the victims’ cryptos are sent to the fraudsters’ own wallet address.
4. Laundering – swindlers immediately bounce the payment through several different addresses, making it difficult to track. They are also known to exchange one coin for another in order to make the transaction more difficult to trace.

These schemes are easiest to spot in their social engineering phase. Look out for anyone sharing token sales, crypto airdrops, or ICO contributions to the general public, as they may be the perpetrator.

Fake Websites

The fake website is an umbrella term covering several different fraudulent operations. What they all have in common is the tendency to lead clients to a fake site to work them over.

These sites may appear as fake MetaMask platforms and usually function like this:

• Phishing sites – impersonators or clone websites of a legitimate platform intended to obtain your personal information or secure data.
• Fund theft sites –  these sites promise various unrealistically lucrative deals, like discount coins or free crypto assets in return for a one-time or recurring payment.
• Token sale scams – hoax crypto platforms pretend to create a liquidity pool, and sell worthless tokens in exchange for fiat or crypto assets.

Your best way to prevent falling for this sort of fraud is to double-check the website URL before committing any funds. Although tedious, this may save you a lot of headaches in the long run.

How to Report a MetaMask Scam?

First and foremost, as soon as you suspect to be targeted by a MetaMask fraud, you should unload your threatened wallet and move funds to a new, secure one. That will prevent the cons from accessing the rest of your digital currencies and block access to your private keys.

After you’ve secured the remainder of your capital, make sure to report the event to the support on the MetaMask website. Additionally, you should immediately establish contact with the jurisdictional government branch that fights cyber crime and report scams:

• Crypto traders in the US are advised to contact the Internet Crime Complaint Center (IC3), which is a part of the FBI.
• Citizens of the EU can report cybercrime online – the Europol website contains links to exact web addresses for reporting cybercrime in each member country.
• UK investors can report cybercrime to ActionFraud – the UK’s national reporting center for fraud and cyber criminality.

What to Do If Your Crypto Was Stolen?

Users of the MetaMask application should remember that the company providing the wallet services cannot access your funds and, therefore, cannot assist you in fund recovery. In case of custodial wallets, the recovery phrase can only be accessed by the owner of a particular wallet. If that doesn’t work, you should seek help from another source.

Our crypto recovery experts specialize in tracking crypto transactions and determining the wallets your funds have gone through. By collecting this information, our fund recovery professionals can help you recover your assets lost to crypto fraud. Contact us for more details and to book your free consultation.