Scammers have been targeting cryptocurrency sites in order to take over their traffic, and possibly their earnings. Water Labbu, a recently discovered threat actor is trying to manipulate users by injecting malicious code as a means of interacting with their wallets. The attacker will attack the wallet depending on the funds it has.
Crypto Scammers are attacking Crypto Scammers
As the crypto ecosystem is growing, scam sites are becoming more popular. They use different resources such as Youtube streams to target investors. With sophisticated script tools, scammers can now take advantage of scammers. Water Labbu is a new threat actor that targets third-party cryptocurrency scam websites to make their users its target.
This attack injects script into the cryptocurrency scam website page. It is often a lending-liquidity supplying page. The script sends an approval prompt to the wallet of the user, if the wallet has more than a specified amount. The request is approved by the user and appears to be valid token allowance requests from Web3 sites. If accepted, all USDT in the affected wallet will be removed.
Water Labbu is committing a double-scam attack. Water Labbu robs cryptocurrency from targeted users, and then uses resources provided by the scam website. The site previously invested in many channels to draw the users’ attention.
Here are some warnings and earnings to avoid this scam
According to Trend Micro’s recent report, Water Labbu infected 45 websites that sell cryptocurrency. It was also discovered that the fraud affected at least 9 addresses, which allowed for more than $300,000.
This attack can be avoided by following the best practice guidelines. Trend Micro explains that “users should be careful of any invitations for investment that originate from untrusted parties. Furthermore, they should not trade cryptocurrency funds on any unknown platform without thoroughly vetting its legitimacy, understanding what it does, and how it operates.”
You can also avoid this type of fraud by being aware of token approval limits, and reviewing every transaction that is signed by your cryptocurrency wallet.
Let us know your thoughts on the crypto scam that exploits other sites. Comment below.
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