A user recently fell victim to a transaction simulation spoofing scam, losing 143.45 ETH, equivalent to $460,895. This sophisticated exploit takes advantage of a key feature in modern Web3 wallets designed to improve user transparency: transaction simulation.
This feature lets users preview the expected outcome of their transactions before signing.
However, attackers manipulate the brief time gap between simulation and execution to deceive users. Through phishing sites, they alter on-chain states immediately after users submit their transactions, making malicious activities appear legitimate during the simulation process.
How the Attack Works
1. The phishing site prompts a “Claim” ETH transaction.
2. The wallet simulation displays the receipt of a negligible ETH amount (e.g., 0.000…0001 ETH).
3. Meanwhile, the phishing site’s backend modifies the contract state.
4. The victim, unaware of the state change, signs the transaction.
5. The actual transaction executes, draining the victim’s wallet entirely.
1/8 🚨 SECURITY ALERT: A victim lost 143.45 ETH ($460,895) through transaction simulation spoofing 1 day ago.
Here's how these attacks work… 🧵 pic.twitter.com/IQTSS8I3dp
— Scam Sniffer | Web3 Anti-Scam (@realScamSniffer) January 10, 2025
In a recent case, the victim signed a transaction roughly 30 seconds after the contract state was altered, enabling the attacker to steal all their funds.
Protect Yourself
To avoid falling victim to such scams, consider the following:
– Carefully review all transaction details.
– Verify the legitimacy of contract interactions.
– Be wary of offers involving “free claims.”
– Use only trusted decentralized applications (dApps).
Wallet Improvements to Mitigate Risks
Wallet developers can enhance user protection through:
– Dynamic simulations that refresh based on real-time blockchain data.
– Mandatory simulation updates before transactions are signed.
– Displaying simulation timestamps and block heights.
– Integrating blocklists for known phishing contracts.
– Warning users about outdated simulation results.
Remaining vigilant and adopting these practices can help safeguard your assets against increasingly sophisticated Web3 exploits.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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Image Source: Max Bender/Unsplash // Image Effects by Colorcinch
