Changpeng “CZ” Zhao , CEO, Binance, warned his followers on X, formerly Twitter, about a scam targeting the crypto community. It is believed that the scan has been using fake wallet addresses and are used to defraud users during transactions, stated Cointelegraph.
The scheme is expected to create addresses with the same starting and ending characters as the user’s original address. Once the fraud address has been generated, the scammer sends the target dust transactions which might reflect on the users transaction history. It is believed that in case the affected users copies and pastes an address from one of the dust transactions, the funds will be sent to the scammer, Cointelegraph added.
Sources revealed that the scam could be avoided by using a blockchain domain, such as the Ethereum Name Service.
Furthermore, security experts do not recommend users copy and paste addresses from applications to transfer funds. Supposedly, users are advised to use strong, unique passwords for crypto accounts and enable two-factor authentication on applications, Cointelegraph concluded.
(With insights from Cointelegraph)