Shiba Inu Warns of Luring Honeypot Scams: How to Stay Safe

Shiba Inu custodian SHIB BPP shares foolproof steps to protect yourself from rapidly rising honeypot scams.

Shiba inu standing on two paws, cautiosly checking out a huge pot of honey.
Created by Gabor Kovacs from DailyCoin
  • Shiba Inu custodian explains how to avoid sophisticated online traps.
  • CertiK audit company tracks a hacker who looted $3.2M on Telegram.
  • Trader shares tips on how to indicate the red flags in honeypot scams.

A prominent Shiba Inu (SHIB) community member took to X to raise awareness of the recently fast-spreading honeypot scams. Aside from the announcement on X, SHIB BPP also briefly explained the framework behind the luring honeypot scams and how to avoid them.

Compared to regular phishing scams, honeypot scams can be even more elaborate and broader. For example, phishing scams are usually fraudulent websites that imitate the source, luring cryptocurrency enthusiasts into believing the copycat website is legitimate.

On the other hand, honeypot scams also target cryptocurrency investors via bogus websites but highly depend on the actors hiring to endorse the fraudulent schemes on social media. That being said, there are a couple of red flags that each crypto investor should consider:

  • The project claims unbelievably high returns.
  • Website addresses tend to have random characters.
  • Persuasive messages to urgently invest in the scheme.

As if that wasn’t enough, the honeypot scams prevalent on Telegram usually include a fake persona and fictitious tokens, which are not released on the blockchain despite the project developers claiming otherwise. Because of this, SHIB BPP stresses the importance of vigilance and thorough research.

Telegram Bad Actors Loot $3.2M Via Elaborate Honeypot Plot

According to the blockchain security enterprise CertiK, the pandemic of honeypot schemes has reached an unparalleled level on Telegram, one of the world’s most popular messaging apps. To illustrate, various pseudonymous characters have been masquerading as professional and highly experienced crypto traders.

To build trust, these online personalities create persuasive videos and fabricate websites to stimulate the honeypot’s reputation artificially. In one recent case, CertiK tracked an online threat actor who had partaken in nine different honeypot scams, stealing a hefty $3.2 million.

While the Telegram messaging service is heavily stained with these bad actors, honeypot schemes also often occur on Discord servers and X. Ultimately, the best way to prevent this is to Do Your Own Research (DYOR), as this is the only guaranteed remedy in a sophisticated honeypot scheme.

On the Flipside

  • According to CertiK’s analysis of five selected honeypot scams, these fraudulent schemes tend to employ actors to garner a fanbase.
  • However, sometimes, it could take several months before the Telegram channel starts promoting fraudulent schemes to lure crypto investors.

Why This Matters

Financial literacy is a key trait for successful crypto traders, while various cryptocurrency-related scams have been on the rise since 2022.

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This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Tadas Klimasevskis

Tadas Klimaševskis is a Lithuanian journalist at DailyCoin, specializing in covering the lighter side of the crypto industry such as memecoins and pop culture in the metaverse. He has experience as a music artist, English language teacher, and freelance writer, and uses his creative writing skills to summarize valuable information in his work. He is also a strong believer in the potential of blockchain and spends his free time listening to music, traveling, and watching basketball games.