Crypto Airdrop Scams: A Quick Guide

Crypto airdrops have exploded in popularity across the world, and threat actors are exploiting security vulnerabilities to steal crypto assets from unsuspecting parties. This article is a quick guide on how to avoid falling victim to crypto airdrop scams.

What is a Crypto Airdrop?

A crypto airdrop refers to the distribution of new tokens or coins by a project to a wide range of individuals in the crypto community. Crypto airdrops became popular during the initial coin offering (ICO) boom of 2017, but are still used by many crypto projects today.

Crypto airdrops have become a common marketing strategy used by crypto enterprises. They help to raise awareness of a project and encourage people to become users or investors. Airdrops can also be used to distribute tokens fairly. They ensure that the initial supply is spread across a large number of people, rather than concentrated in the hands of a few early investors.

Avoiding Crypto Airdrop Scams

Crypto airdrop campaigns are very effective at attracting attention and engagement in the online community. Unfortunately, not all of that attention is positive because bad actors are always looking for ways to take advantage of the excitement surrounding crypto airdrops.

Good security hygiene and proactive security measures are essential aspects of staying protected from crypto airdrop scammers. You can dramatically reduce the risk of losing your assets to such scams by following these practical tips when interacting with crypto airdrops.

Research and Due Diligence

Always do your own research. Pay attention to the project’s team members, their experience, and any previous projects they have been involved with. If the team’s credentials are difficult to verify or lack transparent information, it is a red flag.

Also, take public chatter with a pinch of salt. Crypto airdrop campaigns are often driven by hype, which does not always completely coincide with facts. Finding trustworthy sources is key to reaching accurate conclusions when doing research on crypto airdrops.

Verify Official Channels

Ensure that your information always comes from official channels. There is often a lot of noise and miscommunication in fast-paced crypto airdrop campaigns. The final phase of such campaigns, especially around the time of token distribution, is a sensitive period. Crossed lines of communication may lead unsuspecting users into the web of scammers.

As a general rule of thumb, never act on any information without first verifying that it has originated from an official channel.

Exercise Caution With URLs

A common tactic used by crypto airdrop scammers is to clone the project’s official social media page. When high-traffic posts are shared (for instance, a post announcing that token distribution is live), threat actors immediately reply to the original post with phishing links and wallet drainers.

In the rush to make a time-sensitive action, many users mistake these phony links for posts from an official account. This underscores the need to be careful when clicking URLs related to crypto airdrops. If possible, only click links on the project’s official website.

Use a Burner Wallet

Many crypto airdrops require users to meet certain requirements to be eligible. This often involves a specific measure of on-chain activity; hence, participants will need to claim their rewards using the wallets that meet these requirements.

To minimize the risk of loss from crypto airdrop scams, it is strongly advised to use a burner wallet when interacting with crypto airdrops. If something goes wrong and the wallet becomes compromised, then your crypto assets remain safe.

If you must interact with an airdrop using your main wallet, protecting your assets with FailSafe ensures that you never lose your crypto or NFTs, even in a worst-case scenario.

Don’t Trust; Verify

It would be prudent to approach crypto airdrops with some skepticism. Due to the large volume of activity, there is an increasing rate of fraud related to crypto airdrop campaigns. Proactive security meaures go a long way to minimize the risk of falling victim to bad actors.

Avoid unofficial token launches, such as blind presales, which may be scams. Never share personal information directly on a third-party website. If you must share your details, make sure that the project uses a reputable Know-Your-Customer (KYC) service provider.

FailSafe offers cutting-edge features designed to protect against unauthorized transactions and phishing attempts, providing an additional layer of security for your digital assets.

Start using FailSafe to improve your crypto wallet security today.