Airdrop Scams

What Are Airdrop Scams?

An airdrop scam is a deceptive tactic that uses the allure of free cryptocurrencies or NFTs to defraud unsuspecting users. To understand these scams, it helps to know that legitimate airdrops are marketing campaigns where blockchain projects distribute free tokens to users as a way to generate interest or reward loyal community members.

Authentic airdrops typically require users to perform specific tasks like joining a community, following social media accounts, or holding certain tokens. Scammers exploit the appeal of these “free” rewards by creating fake airdrop campaigns that trick users into revealing sensitive information or granting access to their crypto wallets.

How Do Airdrop Scams Work?

Airdrop scams typically begin when malicious actors create fake airdrop campaigns and distribute worthless tokens to random wallet addresses. These tokens often appear on legitimate block explorers and may even seem to have value on token listing sites, creating the illusion of a genuine airdrop.

When users try to sell or swap these tokens, the transaction fails and displays an error message. This error message directs users to a fake website or decentralized application where the real scam takes place. The fraudulent site prompts users to connect their wallets to claim or trade the tokens.

Once users connect their wallets and approve transactions on these fake sites, they unknowingly trigger malicious smart contracts that can drain their entire wallet balance. The contracts transfer the victim’s legitimate cryptocurrencies to the scammer’s wallet, often within seconds of the approval.

How To Spot Fake Airdrops

Some of the ways of spotting fake airdrops include:

• Unrealistic reward promises with no eligibility criteria – Airdrops that appear to be too good to be true may be potentially fake.
• Urgent language – Fake airdrops use pressure tactics to persuade unsuspecting users to claim the fake airdrops. Beware of urgent lingo, such as “act fast,” “claim now”, and so on.
• Lack of official announcement source – If the project doesn’t announce its airdrop campaign or launch using verified channels, it is probably fake.
• Suspicious URLs or clone sites – Scammers may also tweak their URL using a simple typo or alternate spelling to resemble a genuine project.
• Request for SRP or private keys – A project asking you to provide your seed phrase, private keys, or personal information to claim an airdrop should trigger your scam radar.

Ledger devices provide additional protection through Clear Signing, which shows transaction details in plain language, and Transaction Check, which can identify when users are about to interact with malicious smart contracts commonly used in airdrop scams.