Categories: EducationScams

Bitcoin Scam Site Warning – SafeTrader.io

It appears a new potential scam site is making the rounds, which goes by the name of SafeTrader.io. This platform appears to allow users to gain more information about specific LocalBitcoins users before making a deal with them. While such a service could prove to be quite valuable, it also appears the platform executes a JavaScript code which can be used to empty user wallets. The inner workings of this platform remain unclear right now, but we advise people to be cautious.

What is the Deal With SafeTrader.io?

On the surface, the SafeTrader.io seems perfectly legitimate. It becomes evident the platform is targeting people who frequent the LocalBitcoins platform. While this platform has a powerful reputation system, it is hard to find out more information about other users directly. SafeTrader aims to provide said functionality through a useful bookmarklet, which provides a richer version of the trading platform as a whole.

Unfortunately, it appears there are some issues with this particular bookmarklet. The company claims their solution offers power trading, smarter feedback, and a trustless platform. That does not appear to be the case by any means. More specifically, there is a major complaint regarding this platform right now. It appears the bookmarklet can be used to access one’s LocalBitcoins account and potentially steal funds from the user in quick succession. That is a problematic development, assuming it is true.

What is rather remarkable is how the SafeTrader website certainly lists a lot of people active on the LocalBitcoins platform. Users are sorted based on their available bitcoin balance. It is unclear how this information is retrieved and whether or not it is entirely accurate. Then again, it is possible this information can be obtained through the LocalBitcoins API in one way or another. This may just be a move to make SafeTrader look more legitimate, though.

According to the user complaining about this service, the bookmarklet provided by SafeTrader runs a bit of JavaScript code which can potentially have malicious consequences. More specifically, the user executed this code and promptly saw his LocalBitcoins wallet getting emptied. It is possible this is a mere coincidence, although that does not appear to be a credible explanation whatsoever. The bookmarklet also asked for a verification code related to the LocalBitcoins platform.

It is evident giving up this code is the main reason why things got out of hand so quickly. Then again, it also highlights the potential nefarious activity this application presents in the first place. It does not appear anyone has posted a positive review about SafeTrader so far. Additionally, the company claims they have been covered or supported by a major news outlet, yet that is not the case. It appears there are quite a lot of things to worry about where SafeTrader is concerned.

For the time being, the best course of action is to stay away from this platform until an official explanation is provided. LocalBitcoins users should be extremely careful when using this particular platform, as it raises more questions than answers right now. It is possible more people have had their wallets affected by this nefarious tool, although we have not received any other reports at this time.

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JP Buntinx

JP Buntinx is a FinTech and Bitcoin enthusiast living in Belgium. His passion for finance and technology made him one of the world's leading freelance Bitcoin writers, and he aims to achieve the same level of respect in the FinTech sector.

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JP Buntinx
Tags: localbitcoinsSafeTrader.io

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