Scam targets fake wallets with USDT and TRX traps

A new crypto scam is exploiting users by using fake wallets to lure them into transferring funds, cybersecurity firm Kaspersky reported on Monday.

The scam begins with fraudsters sharing seed phrases in YouTube comments under finance-related videos.

“I have USDT stored in my wallet, and I have the seed phrase. How to transfer my funds to another wallet?” reads one such comment.

This seemingly naive post invites users to access the wallet using the provided seed phrase, where they find significant amounts of USDT (CRYPTO:USDT).

However, attempts to transfer the USDT require a fee paid in TRX (CRYPTO:TRX), the cryptocurrency token of the TRON (CRYPTO:TRON) network.

Kaspersky explained that the wallet is designed as a multi-signature wallet, which requires approval from multiple parties to authorize transactions.

When users send TRX to cover the fee, the tokens are immediately redirected to another wallet controlled by the scammers, leaving victims empty-handed.

“The catch is that the bait is set up as a multi-signature wallet,” Kaspersky stated.

“This setup ensures that outgoing transactions cannot proceed, even after paying the ‘commission.’”

The scam is particularly deceptive, targeting both unsuspecting users and would-be opportunists who fall for the apparent vulnerability.

Kaspersky described the scheme as one where scammers impersonate inexperienced users, tricking others into taking actions that ultimately make them victims.

The cybersecurity firm urged crypto users to avoid interacting with wallets that claim to offer “free money” and emphasized the importance of never sharing or using seed phrases from unverified sources.

“By staying informed and practicing ethical behavior, individuals can protect their assets and steer clear of deceptive traps like this,” Kaspersky advised.

This serves as a stark reminder for cryptocurrency users to remain vigilant and exercise caution in the ever-evolving digital asset space.

At the time of reporting, the Tether price was $0.9993, and the TRON price was $0.252.