Understanding the Recent Ethereum Gas Fee Scam and How to Protect Yourself

On March 21st, according to a tweet from encryption data company Arkham, the hacker’s address marked by Nansen as an Arbitrum Airdrop Exploitor has sent Ethereum as a gas fee to about 2400 private key compromised addresses in the past 12 hours, and has authorized an ARB contract in advance to prepare for an ARB air drop.

A hacker sent Ethereum to 2400 private key compromised addresses in an attempt to preempt the ARB airdrop

On March 21st, encryption data company Arkham reported a concerning incident involving Ethereum gas fees. The hacker’s address, marked by Nansen as an Arbitrum Airdrop Exploitor, sent Ethereum to around 2400 compromised addresses over the past 12 hours. To make matters worse, the hacker has authorized an ARB contract in advance to prepare for an ARB airdrop. In this article, we will discuss the scam in detail and provide tips on how to protect yourself.

What is Ethereum Gas Fee Scam?

Before we get into the specifics, let’s start with the basics. Ethereum operates on a decentralized network, which means that transactions require a small fee called gas to be processed. This gas fee is paid in Ethereum, and the amount to be paid depends on several factors such as network congestion and the complexity of the transaction.
Unfortunately, cybercriminals are constantly on the lookout for ways to exploit the system. In the recent gas fee scam, the hackers sent Ethereum as gas fees to thousands of compromised addresses to profit. It is a sophisticated scam that involves the creation of a smart contract and several other steps to execute.

How Does the Ethereum Gas Fee Scam Work?

The Ethereum gas fee scam is executed in three steps:

Step 1: Creation of a Smart Contract

The first step is the creation of a smart contract that contains an irregular token. The hacker creates the smart contract, which includes a large amount of irregular tokens, a portion of which belongs to them.

Step 2: The Airdrop

The second step is the airdrop of tokens to unsuspecting users. The hacker can use several methods to attract victims, including social media and email campaigns. Once the user falls victim, the hacker transfers the irregular token to them.

Step 3: Execution of the Scam

The third and final step is the execution of the scam. The hacker sends Ethereum to the compromised address as a gas fee. The transaction is confirmed by the smart contract, ensuring that the gas fee is taken from the users’ wallet.

How to Protect Yourself from the Ethereum Gas Fee Scam?

The Ethereum gas fee scam can be avoided by being cautious and taking the following precautions:

Use a Reliable Wallet

Storing your Ethereum in a reliable wallet is one of the best ways to protect yourself from the Ethereum gas fee scam. A reliable wallet provider generally implements robust security measures such as multi-factor authentication and encryption.

Be Cautious with Airdrops

Airdrops are not always trustworthy, so it is essential to be cautious. Do your research and ensure the airdrop is legitimate before participating. Additionally, be cautious of emails and social media campaigns promising huge rewards. If something seems too good to be true, it probably is.

Enable Two-Factor Authentication (2FA)

Enabling two-factor authentication is an essential security measure that adds an extra layer of security to your wallet. 2FA requires an additional code to be entered to access your wallet, making it more difficult for hackers to gain access.

Conclusion

The Ethereum gas fee scam is a complex and sophisticated scam that can lead to significant financial loss for victims. It is essential to take appropriate measures to protect yourself, including using a reliable wallet, being cautious with airdrops, and enabling two-factor authentication. Remember, it’s always better to err on the side of caution than to fall victim to these scams.

FAQs

1. Can the hacker be caught?

Unfortunately, due to the decentralized nature of Ethereum, it is highly unlikely that the hacker will be caught. However, Ethereum developers are working to improve the network’s security to minimize the possibility of such scams occurring in the future.

2. What should I do if I fall victim to the scam?

If you fall victim to the Ethereum gas fee scam, you should immediately contact the relevant authorities and report the incident. Additionally, you should consider changing your wallet and implementing additional security measures to prevent further attacks.

3. Are gas fees necessary to complete transactions on Ethereum?

Yes, gas fees are necessary to complete transactions on Ethereum. These fees are paid in Ethereum and go to miners who process the transaction. The fee amount varies depending on the complexity of the transaction and network congestion.