3 Ways Scammers Are Trying To Fool You About Ethereum’s Merge

https://e-rupiguide.in/3-ways-scammers-will-try-to-fool-you-over-ethereum-s-merge/

Scammers will likely use excitement around the Ethereum Merge to launch new scams targeting first-time crypto users, PolySwam CEO Steve Bassi has warned.

The Ethereum Merge is expected to take place within the next 24 hours.

Steve Bassi, founder and CEO of PolySwarm, told e-RUPI Guide that this scam could come in the form of fake ETH 2.0 tokens, fraudulent mining pools and fake airdrops.

PolySwam is a decentralized cybersecurity marketplace that connects cybersecurity experts with projects and businesses through bounties.

Fraudulent Strike Pools

The Ethereum upgrade marks the transition from the current proof-of-work (PoW) consensus mechanism to proof-of-stake (PoS).

Bassi said that for many Ether (ETH) holders, joining a staking pool is their only way to make a return on staking rewards if they don’t have the 32 ETH needed to become an independent validator.

“Staking is a fairly new concept to most of the crypto community and unless you have 32 ETH laying around, you will have to join one of the staking pools to get returns from your ETH.”

However, Bassi warned that pooled strike providers “carry their own risk” as users often have to deposit and relinquish control of their ETH.

Bassi said that novice strike providers, who can offer “very attractive terms”, could carry out “sudden carpet pulls” that would affect those who participate in the pool.

“This risk exists today with DeFi platforms/pools and tokens, but the Merge will give scammers a new character universe to work with.”

Upgrade Scams

One of the most imminent threats is that scammers try to trick users into signing fraudulent transactions or relinquishing their private keys under the guise of migrating to the new Ethereum chain.

Bassi reiterated that the upgrade to proof-of-stake should be transparent and that a user does not need to do anything to migrate or keep their ETH-based tokens, noting:

“We’re likely to see scammers trying to trick users into signing fraudulent transactions and/or leaking private keys based on a false pretense that the user has to do something to migrate chains.”

Fake air drops

Another likely attack vector will come in the form of “fake airdrops,” Bassi added – persuading users to sign transaction messages or visit phishing sites to receive a fake airdrop.

“The ETH merger will be a good excuse for these scammers to pose as well-known, economically valuable projects promising airdrops.”

“Those airdrops are likely to redirect users to a phishing site where they may be taken from their ETH, private keys, and/or edited transaction signing attempts.”

The Ethereum Foundation has called the upcoming Merge the “most significant upgrade in the history of Ethereum” and has urged users to be “very alert” to scams trying to take advantage of users during the transition. It has repeatedly warned that there is no such thing as an ETH2 or ETH 2.0 coin.

Most onlookers expect the upgrade to be a success given the experience in the previous test nets, but Bassi said there could still be a chance that scammers or hackers have found a way to abuse the system.

“We don’t really know if a group of scammers/hackers has already developed an attack or DDoS technique against the chain that can be used after the merge when ETH 2.0 has moved the entire economic value of ETH 1.0.”

“If there were such an attack, it would probably only have temporary consequences for the chain and possibly the market, because many smart eyes are looking at the behavior after the merger. However, an attacker will likely be looking for the opportunity to monetize discoveries.”