HomeNewsEthereum-Related Scams Have So Far Led to the Loss of $1.2M Ether
Ethereum-Related Scams Have So Far Led to the Loss of $1.2M Ether

Ethereum-Related Scams Have So Far Led to the Loss of $1.2M Ether

Last updated 15th Dec 2022
  • Many scammers are looking to take advantage of those who are not familiar with the new Ethereum network
  • One of the most common Ethereum scams is phishing

Ethereum underwent a switch from proof-of-work (PoW) to proof-of-stake (PoS) on September 15, 2022. This caused some confusion among investors, and scammers quickly took advantage of this. According to BanklessTimes.com, Ethereum-related scams have cost people a total of $1.2 million in Ethereum shortly before, during, and after the network’s highly-anticipated Merge.

These scams mostly took the form of trust trade, in which the fraudster convinces victims to send them a certain amount of cryptocurrency with the promise of receiving double the amount in return. These scammers often impersonate celebrities or other well-known figures in the space to gain victims’ trust.

BanklessTimes CEO, Jonathan Merry, commented on the data,

It’s not surprising that scammers would take advantage of the confusion and excitement around such a major event in the Ethereum community. It’s a reminder that we all need to be extra careful when considering any sort of investment, no matter how enticing it may seem.
BanklessTimes CEO, Jonathan Merry

Ethereum Transition to POS

So far, the Merge has been a success, and Ethereum is now running on the new proof-of-stake consensus algorithm. This transition was necessary to make Ethereum more scalable and ready for mass adoption. The old proof-of-work algorithm was simply not enough to handle the increasing number of transactions on the network.

The new proof-of-stake algorithm is more energy efficient and will allow Ethereum to process more transactions. This is good news for those who use Ethereum for payments or other purposes. However, it is essential to remember that this transition period is a time of heightened risk.

Phishing Scams

One of the most common scams is the phishing scam. This is where a scammer will send you an email or message that looks like it is from a legitimate source, such as the Ethereum Foundation. The message will ask you to click on a link that takes you to a fake website. Once there, you may be asked to input your seed phrase or sign wallet permissions. This would allow the scammer to take control of your wallet and drain your funds. People have already lost a significant amount of money to this scam.

Another common scam is the fake airdrop scam. This is where a scammer will promise to give you free cryptocurrency if you send them a small amount of Ethereum first. This is simply a way to steal your Ethereum.

Protect Yourself

There are a few things you can do to protect yourself from these scams. First, be sure only to buy Ethereum from a reputable source. There are many exchanges that allow you to buy Ethereum, but not all of them are reputable. Do your research to find a reliable exchange.

Additionally, be careful of any message or email you receive that asks you to click on a link. Do not click on the link if the message is unsolicited and seems to be from a questionable source. It is best to simply delete the message.

Elizabeth Kerr

Elizabeth Kerr

Elizabeth is a financial content specialist from Manchester. Her specialities include cryptocurrency, data analysis and financial regulation.