Impersonation scams: how to protect your crypto wallet?

Introduction: The Dark Side of Crypto Communities

Telegram groups, Discord servers, and other community forums are the heartbeat of the crypto ecosystem. It's where you find help, information, and a sense of belonging. Unfortunately, it's also a prime hunting ground for scammers.

One of the most vicious and effective scams is administrator impersonation. An investor thinks they are receiving help from a trusted figure, but they are actually handing over the keys to their wallet to a thief. This article explains how this scam works, how to spot it, and most importantly, what to do if you've fallen into the trap.

The Anatomy of an Impersonation Scam

The scenario is often the same and unfolds in several steps designed to abuse your trust.

1. The Initial Problem: You encounter a technical issue. A transaction is stuck, a swap isn't working, or you have a question about staking. You ask your question in the project's official Telegram group.

2. The Fake Administrator Contacts You in Private: Almost immediately, you receive a private message (DM) from someone claiming to be an administrator or a support member. Their username and profile picture are almost identical to those of a real admin. The difference is often subtle: an extra letter, a changed number.

   • Real admin: @real_admin007
   • Fake admin: @reall_admin007 (with two "l"s)

3. The Fraudulent Link: The fake admin is very helpful. They explain that to solve your problem, you need to use a special "synchronization" or "rectification" tool for your wallet. They send you a link that looks official.

   • Official site: https://mrhb.network
   • Fraudulent site: https://onchain.webdapp-walletexplorer.com/

4. The Fatal Mistake: Connecting Your Wallet or Giving Your Seed Phrase: The fraudulent site is a perfect copy of a legitimate tool (like WalletConnect or a blockchain explorer). It asks you to connect your wallet, and worse, to enter your recovery phrase (seed phrase) to "validate" or "repair" your wallet. Sometimes, instead of the seed phrase, the site asks for an unlimited token approval, giving the scammer the right to spend your funds.

5. The Theft: Once you've entered your seed phrase or approved the malicious transaction, it's too late. The scammer now has full control over your wallet. They can drain your funds, including any tokens you have staked as soon as they are unlocked.

Warning: An administrator or support member WILL NEVER CONTACT YOU FIRST via private message. All official communication happens publicly in the main group.

Think You've Been Scammed? Here's the IMMEDIATE Action Plan

If you have the slightest doubt or if you've followed the instructions of a fake admin, every second counts. Don't panic, and follow these steps methodically.

Step 1: Stop Interacting and Isolate

• Immediately close the tab of the fraudulent site.
• Do not click on any other links or provide any more information.
• Disconnect your wallet from the site if possible (via your mobile wallet or extension's settings).

Step 2: Revoke Token Approvals (Crucial!)

This is the most important step. If you signed a transaction on the scammer's site, you may have given them permission to spend your tokens. You must revoke this permission.

• Go to a reputable revocation tool like Revoke.cash. This is the industry-standard tool.
• Connect the compromised wallet.
• A list of all the approvals you've given will be displayed. Look for suspicious approvals, especially those that are unlimited or linked to an unknown contract.
• Revoke all suspicious approvals. This action costs a small network fee (gas fees), but it is essential to prevent the theft of your funds.

Step 3: Create a New Wallet and Transfer Funds

If you entered your recovery phrase (seed phrase), your wallet is permanently compromised. It will never be secure again. The only solution is to migrate your assets.

1. Create a brand new wallet on a "clean" device (a phone or computer you know is not infected). Write down the new seed phrase on paper and keep it in a safe place.
2. Immediately transfer all liquid assets (not staked) from the compromised wallet to your new wallet.
3. For staked assets (like MRHB tokens): the scammer probably can't withdraw them while they are locked. However, they will wait for the staking period to end to act. As soon as you can unstake your tokens, immediately transfer them to your new wallet. Be faster than the scammer.

Step 4: Abandon the Compromised Wallet

Once you have recovered all possible assets, never use the compromised wallet again. Do not top it up, do not use it for transactions. It now belongs to the scammer.

Step 5: Report the Scam

• Take screenshots of the conversation with the fake admin.
• Report the fake account to the official administrators of the Telegram group.
• Share the fraudulent link so it can be reported and blocked.

This will not undo the theft, but it will help protect other members of the community.

How to Protect Yourself in the Future

• No DMs: Configure your privacy settings on Telegram to refuse private messages from people who are not in your contacts.
• Check Usernames: If an admin contacts you, check their username letter by letter against the official list of admins in the group.
• Never Share Your Seed Phrase: This is the golden rule. No one, absolutely no one, needs your seed phrase.
• Use a Hardware Wallet: For significant amounts, a wallet like Ledger or Trezor adds an essential layer of physical security.
• Beware of Links: Never click on suspicious links. Bookmark the official sites you use often (like Sahal Wallet's, or tools like Revoke.cash).

Conclusion: Vigilance is Your Best Weapon

Secure wallets like Sahal Wallet are designed to give you full control over your assets. However, the security of a non-custodial wallet relies on one thing: your vigilance. No technology can protect you if you willingly give your keys to a scammer.

By understanding the mechanics of these scams and knowing how to react, you turn fear into preparation. Stay skeptical, verify everything, and protect your financial freedom.

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References

1. Revoke.cash - Tool for managing and revoking token approvals. https://revoke.cash
2. Etherscan Token Approval Checker - Approval checking tool on Ethereum. https://etherscan.io/tokenapprovalchecker