Revoke.Cash, a leading decentralized finance (DeFi) security platform, has swiftly responded to user complaints regarding a growing crypto scam involving fake approvals. In a bid to mitigate this fraudulent activity, Revoke has introduced a new feature aimed at protecting its users from falling victim to these deceptive practices.
Scammers Exploit Gas Tokens To Deceive Users
Scammers have reportedly found a novel way to profit from unsuspecting crypto users by leveraging a scheme involving gas tokens. Over the weekend, Revoke.com received complaints regarding a crypto scam that lures users into revoking what they believe to be legitimate approvals, only to face unexpectedly high transaction fees. These malicious actors create counterfeit gas tokens, which they distribute alongside fake approvals.
According to the security platform, the scam relies on the use of so-called “gas tokens” by the perpetrators. Gas tokens were initially developed as a response to the increasing Ethereum network fees, allowing users to store low-cost gas during periods of reduced network demand. This functionality enabled users to mint gas tokens at lower fees and utilize them when fees surged, thereby securing lower transaction costs.
Revoke warned about these fake approvals on a Twitter post saying: “Yesterday, we received reports of people seeing unknown approval transactions in their transaction history. It turns out that this is a new scam where scammers use so-called gas tokens to steal money when victims revoke these “fake approvals”.
Yesterday, we received reports of people seeing unknown approval transactions in their transaction history.
It turns out that this is a new scam where scammers use so-called gas tokens to steal money when victims revoke these “fake approvals”. pic.twitter.com/vpY2sGIv0T
— Revoke.cash (@RevokeCash) July 9, 2023
The scammers employ psychological tactics to lure users into believing that revoking these fraudulent approvals is necessary. Once users initiate the revocation, a transaction with excessively high gas fees is triggered, enabling the scammers to profit at the expense of the victims.
Total market cap recovers to $1.14 trillion | Source: Crypto Total Market Cap on TradingView.com
Revoke Introduces Countermeasure To Protect Users
In light of these deceptive practices, Revoke has swiftly implemented a preventive measure. The platform has incorporated a check that disables the revocation of approvals when excessive gas fees are detected.
A new check has been incorporated within the system, designed to detect and disable the revocation of approvals when an excessive gas fee is detected.
By adding this layer of protection, Revoke prevents users from inadvertently falling victim to the scam features, thereby mitigating financial losses and bolstering trust in the platform.
Additionally, Revoke has issued guidance to its users, emphasizing the importance of vigilance and caution. The platform advises users to disregard any suspicious approvals or tokens they encounter and to refrain from interacting with them. By ignoring these deceptive elements, users can effectively protect their funds and minimize their exposure to potential scams.
Featured image from TLW Solicitors, chart from TradingView.com