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| --- | ||
| title: Introduction to Etheruem security and scams | ||
| title: Ethereum security and scams | ||
| description: Staying safe on Ethereum | ||
| lang: en | ||
| sidebar: true | ||
| --- | ||
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| ## How to Stay Safe | ||
| ## Staying Safe on Ethereum | ||
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| With interest in cryptocurrencies growing exponentially, learning best practices when using cryptocurrency is essential. Crypto can be fun and exciting, but there are also serious risks. You can mitigate these risks with a small amount of upfront work. | ||
| With interest in cryptocurrencies growing exponentially, learning best practices when using cryptocurrency is essential. Crypto can be fun and exciting, but there are also serious risks. If you put in this small amount of upfront work, you can mitigate these risks. | ||
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| <Divider /> | ||
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| ## Web Security 101 | ||
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@@ -29,7 +31,7 @@ Example of a strong password: ymv\*azu.EAC8eyp8umf | |
| - Use a mixture of uppercase, lowercase, numbers and symbols | ||
| - Avoid common dictionary words | ||
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| [More on creating strong passwords](<[https://terranovasecurity.com/how-to-create-a-strong-password-in-7-easy-steps/](https://terranovasecurity.com/how-to-create-a-strong-password-in-7-easy-steps/)>) | ||
| [More on creating strong passwords](https://terranovasecurity.com/how-to-create-a-strong-password-in-7-easy-steps/) | ||
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| ### Use unique passwords for everything | ||
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@@ -52,7 +54,16 @@ Remembering strong, unique passwords for every account you have isn't ideal. A p | |
| Using **Two-Factor Authentication (2FA)** provides an additional *security factor* for your online accounts so that knowing your password alone is not enough to access an account. Most commonly, this is a randomised 6-digit code that you can access through an authenticator app. | ||
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| <InfoBanner emoji=":lock:"> | ||
| <div>Note: Using SMS-based 2FA is susceptible to <a href='https://www.vice.com/en/article/3kx4ej/sim-jacking-mobile-phone-fraud'>SIM jacking</a> and is not secure. For the best security, use a service like <a href='https://mashable.com/article/how-to-set-up-google-authenticator'>Google Authenticator</a> or <a href='https://authy.com/'>Authy</a>. | ||
| <div> | ||
| Note: Using SMS-based 2FA is susceptible to | ||
| <a href="https://www.vice.com/en/article/3kx4ej/sim-jacking-mobile-phone-fraud"> | ||
| SIM jacking | ||
| </a> | ||
| and is not secure. For the best security, use a service like{" "} | ||
| <a href="https://mashable.com/article/how-to-set-up-google-authenticator"> | ||
| Google Authenticator | ||
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| </a> | ||
| or <a href="https://authy.com/">Authy</a>. | ||
| </div> | ||
| </InfoBanner> | ||
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| - Install Chrome extensions locally to stop auto-updating (Advanced) | ||
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| [More on the risks of browser extentions](<[https://www.kaspersky.co.uk/blog/browser-extensions-security/12750/](https://www.kaspersky.co.uk/blog/browser-extensions-security/12750/)>) | ||
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| <Divider /> | ||
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| ## Crypto Security 101 | ||
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| ### Upgrade Your Knowledge | ||
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| One of the biggest reasons people get scammed in crypto generally is a lack of understanding. If you don't understand that no one owns the Ethereum network, then it's easy to fall prey to the kind customer service agent who promises to return your lost ETH in exchange for your private keys. Educating yourself on how Ethereum works is a worthwhile investment. | ||
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| <DocLink to="/what-is-ethereum/" title="What is Ethereum?" /> | ||
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| <DocLink to="/eth/" title="What is ether?" /> | ||
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| ## Wallet Security | ||
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| ### Don't give out your Private keys | ||
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| **Never, for anyone reason, hand out your private keys!** | ||
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| The private key to your wallet acts as your digital signature. It is the only thing stopping someone who knows your wallet address from draining your account of all of its funds! | ||
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| ### Use a Hardware Wallet | ||
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| A hardware wallet provides offline storage for private keys. They are considered the most secure wallet option for storing your private keys. | ||
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| Keeping private keys offline massively reduces the risk of being hacked, even if a hacker gets control of your computer. | ||
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| #### Try a hardware wallet: | ||
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| - [Ledger](<[https://www.ledger.com/](https://www.ledger.com/)>) | ||
| - [Trezor](<[https://trezor.io/](https://trezor.io/)>) | ||
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| ### Double check transactions | ||
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| Accidently sending crypto to the wrong wallet address is a common mistake. Unless you know the address owner, there will be no way for you to retrieve your funds. | ||
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| Always make sure the address you are sending to exactly matches the desired recipient's address before sending a transaction. | ||
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Member
There was a problem hiding this comment. Choose a reason for hiding this commentThe reason will be displayed to describe this comment to others. Learn more. Might be a worthy time to recommend ENS (or wallets that provide that, like Argent) to avoid the fat finger address problem? |
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| ### Set smart contract spend limits | ||
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| When interacting with smart contracts, do not allow unlimited spend limits. An unlimited spend could enable the smart contract to drain your wallet. Instead, set spending limits to only the amount necessary for the transaction. | ||
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| ### Don't take screenshots of your seed phrases/private keys | ||
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| By screenshotting your seed phrases or private keys, you risk syncing them to the cloud and potentially making them accessible to hackers. Obtaining private keys from the cloud is a common attack vector for hackers. | ||
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| <Divider /> | ||
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| ## Common Scams | ||
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| Todo: add copy here | ||
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| ### Giveaway scam (Double your ETH) | ||
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| One of the most common scams in cryptocurrency is the giveaway scam. The giveaway scam can take many forms, but the general premise is that if you send ETH to the provided wallet address, you will receive your ETH back but doubled. *For this reason, it is also known as the 2-for-1 scam.* | ||
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| These scams usually stipulate a limited time of opportunity to claim the giveaway to encourage poor decision-making and create a sense of false urgency. | ||
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| #### Twitter Hack | ||
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| A high-profile version of this occurred in July 2020, when the Twitter accounts of prominent celebrities and organisations got hacked. The hacker simultaneously posted a Bitcoin giveaway on the hacked accounts. Although the deceptive tweets were quickly noticed and deleted, the hackers still managed to get away with 11 bitcoin (or $500,000 as of September 2021) | ||
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|  | ||
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| #### Vitalik Giveaway | ||
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| The Vitalik giveaway is another common form the giveaway scam takes. The scammers will take a recorded video interview or conference talk given by Vitalik Buterin, co-founder of Ethereum, and livestream it on YouTube - making it appear as though Vitalik was giving a live video interview endorsing a cryptocurrency giveaway. | ||
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| Vitalik is used most often in this scam, but many other prominent people involved in crypto are also used (e.g. Elon Musk or Charles Hoskinson). Including a well-known person gives the scammers livestream a sense of legitimacy (this looks sketchy, but Vitalik is involved, so it must be ok!). | ||
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| **Giveaways are always scams. If you send your funds to these accounts, you will lose them forever.** | ||
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| ### Support Scams | ||
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| Cryptocurrency is a relatively young and misunderstood technology. A common scam that takes advantage of this is the support scam, where scammers will impersonate support personnel for popular wallets, exchanges, or blockchains. | ||
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| Much of the discussion about Ethereum happens on Discord. Support scammers will commonly find their target by searching for support questions in public discord channels and then sending the enquirer a private message offering support. By building trust, support scammers try to trick you into revealing your private keys or sending your funds to their wallets. | ||
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| As a general rule, staff will never communicate with you through private, unofficial channels. Some simple things to keep in mind when dealing with support: | ||
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| - Never share your private keys, seed phrases or passwords | ||
| - Never allow anyone remote access into your computer | ||
| - Never communicate in unofficial private channels | ||
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| <InfoBanner emoji=":lock:"> | ||
| <div> | ||
| Beware: although support-style scams commonly happen on Discord, they can also be prevalent on any chat applications where crypto discussion happens, including email. | ||
| </div> | ||
| </InfoBanner> | ||
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| ### Phishing Scams | ||
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| Phishing scams are another increasingly common angle that scammers will use to attempt to steal your wallet's funds. | ||
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| Some phishing emails ask users to click on links that will re-direct them to imitation websites, asking them to enter their seed phrase, reset their password or send ETH. Others may ask you to unknowingly install malware to infect your computer and give scammers access to your computer's files. | ||
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| If you receive an email from an unknown sender, remember: | ||
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| - Never open a link or attachment from email addresses you don't recognise | ||
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| - Never divulge your personal information or passwords to anyone | ||
| - Delete emails from unknown senders | ||
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| ### Crypto trading broker scams | ||
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| Scam crypto trading brokers claim to be specialist cryptocurrency brokers who will offer to take your money and invest it on your behalf. The promises of unrealistic returns usually accompany this offer. After the scammer receives your funds, they may lead you on, asking that you send more funds, so you don't miss out on further investment gains, or they may disappear entirely. | ||
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| These fraudulent brokers find their targets by using fake accounts on YouTube to start seemingly natural conversations about the broker. These conversations are often highly upvoted to increase legitimacy, but the upvotes are all from bot accounts. | ||
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| **Do not trust internet strangers to invest on your behalf. You will lose your crypto.** | ||
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| <Divider /> | ||
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| ## Further Reading | ||
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| ### Web Security | ||
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| - [This is why you shouldn’t use texts for two-factor authentication](https://www.theverge.com/2017/9/18/16328172/sms-two-factor-authentication-hack-password-bitcoin) | ||
| - [Up to 3 million devices infected by malware-laced Chrome and Edge add-ons](https://arstechnica.com/information-technology/2020/12/up-to-3-million-devices-infected-by-malware-laced-chrome-and-edge-add-ons/) | ||
| - [How to Create a Strong Password — That You Won’t Forget](https://www.avg.com/en/signal/how-to-create-a-strong-password-that-you-wont-forget) | ||
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| ### Crypto Security | ||
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| - [4 Ways to Stay Safe in Crypto](https://www.coindesk.com/tech/2021/04/20/4-ways-to-stay-safe-in-crypto/) | ||
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| ### Scams to be aware of | ||
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| - [Bitcoin.org Scams](https://bitcoin.org/en/scams) | ||
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