Approval management platform Revoke has released a fix aimed at taking down a new crypto scam that entices crypto users to withdraw “fake approvals” and then charges them exorbitantly high transaction fees.
On July 9, Revoke.cash said it had received reports of people seeing unknown approval transactions in their transaction history.
Yesterday we received reports of people seeing unknown approval transactions in their transaction history.
This has turned out to be a new scam where scammers use so-called gas tokens to steal money when victims withdraw these “fake approvals”. pic.twitter.com/vpY2sGIv0T
— Revoke.Cash (@RevokeCash) 9 July 2023
In fact, scammers are using so-called “gas tokens” to trick victims into believing that they have suspicious transaction approvals.
“It turns out this is a new scam where scammers use so-called gas tokens to steal money when victims withdraw these ‘fake approvals’.”
Gas tokens were developed when the cost of the Ethereum network started to rise. Users can effectively store cheap gas during periods of low network demand.
“This allows users to obtain gas tokens when the cost is low and burn them when the cost is high, effectively “locking in” the low cost,” Revok explained.
However, Revok said that the scammers have created fake gas tokens that they release into the air with fake approvals and that users think they should cancel.
Counterfeit tokens are programmed to generate a lot of gas during extracted transactions, the newly created gas tokens are sent back to the scammers, causing the victim to pay high transaction fees.
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