How Scammers Use Fake Transaction Simulation Sites to Steal Crypto

Scammers are employing fake transaction simulation sites to deceive cryptocurrency users by creating the illusion of successful transactions that never actually occur on the blockchain. These fraudulent platforms manipulate wallet interfaces, generate deceptive notifications, and fabricate transaction histories, leading victims to believe they have received funds when, in reality, no transfer has taken place.

How Fake Transaction Simulations Operate

In legitimate cryptocurrency wallets, transaction simulation features allow users to preview the outcome of a transaction before execution, helping them understand asset movements and associated fees. However, scammers exploit this feature by creating malicious smart contracts and phishing websites that take advantage of the delay between simulation and execution. For instance, a user might be prompted to "claim" a small amount of Ether (ETH), with the wallet simulation displaying a minimal transfer. Unbeknownst to the user, attackers manipulate the contract state so that, upon signing the transaction, an entirely different function is executed, draining the user's wallet.

Techniques Employed by Scammers

To make fraudulent activities appear legitimate, scammers use various tactics:

The Rising Threat

Phishing attacks, including those involving fake transaction simulations, have become increasingly prevalent. In 2024, wallet drainer phishing attacks surged, with losses reaching $494 million—a 67% increase from the previous year. The number of affected addresses also grew, marking a 3.7% rise from 2023.

Protective Measures

To safeguard against these scams:

By maintaining awareness and exercising caution, users can better protect themselves from falling victim to fake transaction simulation scams.