Dark Forest Crossing Manual | Detailed explanation of the anti-theft guide under the new trap of Observation Wallet

The “Dark Forest”, a cosmic sociological law derived from The Three-Body Problem, is also the most naked summary of the current Web3 security track:

Le crypto industry, especially the on-chain industry as an emerging field, has enough room for imagination and innovative gameplay, but it is also like a dark forest. Whether you are an old user or a new player, it is an eternal topic that we need to keep learning to be familiar with the various risks that may be encountered on the chain and try our best to avoid them.

Recently, a scam targeting non-custodial wallet users has quietly become popular. It uses the observation wallet (wallet that supports observation mode) function to deceive victims through a forged trust mechanism and a carefully designed logic chain. For ordinary users, this scam may seem elementary, but it is extremely deceptive and destructive.

Scammers take advantage of novice users unfamiliarity with decentralized technology and wallet operation procedures to steal crypto assets. In this context, it is particularly important to understand and be vigilant about these common but fatal security risks. This article will analyze the operating mode of this new type of fraud in detail and provide users with a series of prevention tips.

What is the Observe Wallet mode of a non-custodial wallet?

As we all know, watch wallet mode is a feature of non-custodial wallets for crypto assets that allows users to view the balance and transaction history of a specific wallet address.

Due to the transparency of the blockchain, all wallet addresses, corresponding balances and transfer records on the chain are transparent and visible. Users can enter any blockchain wallet address through blockchain browsers and other tools to view their asset balances and on-chain records, including receipts, transfers, on-chain authorizations, etc. In this process, the identity of the wallet owner remains anonymous unless he/she actively discloses it.

As a non-custodial wallet, SafePal wallet also provides an observation wallet mode. For example, when a user creates a new wallet, they can choose to create a new wallet, restore an old wallet, or import the observation wallet mode (click ici to view the official tutorial of SafePal importing the observation wallet mode).

The following figure is a comparison between the observation wallet mode and the normal wallet homepage. It can be found that the observation wallet only allows viewing the balance, but there are no operations such as transfer and flash exchange.

When the user imports the observation wallet mode, he only needs to fill in the wallet address to conveniently view the on-chain balance and transfer records of this wallet in the wallet. However, since the observation wallet does not represent the actual wallet ownership and only provides viewing functions, the user cannot operate the assets in the wallet in the observation wallet mode.

For this reason, the wallet observation mode is often used by the public to track and monitor the on-chain funds and trends of specific wallet addresses, such as regulatory monitoring of blockchain anti-money laundering and fund tracking of hacking incidents.

However, it should be noted that it does not support users to make any transfer transactions to this wallet address, nor is it equivalent to owning that specific wallet address. Only users who have the private key/mnemonic phrase of the wallet address can access and manage the assets in the wallet address.

The scam we are talking about today is a scam designed by scammers who take advantage of users unfamiliarity with this background knowledge.

How does the “Watch Wallet” scam work?

In fact, the core operating idea of this scam is that scammers contact and manipulate victims, making them think that they can access the funds in the wallet address (usually scammers will use wallet addresses with large amounts of funds) and tell the victimized users that they need to make transactions to unlock their funds, but in fact they can only view the wallet balance without any access or ownership.

Here’s how this scam typically works:

Scammers approach users: Scammers will pretend to be support staff of the wallet team. They often contact users through social media platforms (such as Twitter, Telegram or Reddit) and initiate conversations by offering help or investment with wallet-related issues. Some scammers may also post fake help posts online, such as I have a problem with my money and I cant withdraw it. Can anyone help me withdraw it? I am willing to pay a large sum of money to thank you.

Posting fake news: Scammers claim that the users wallet needs to be verified or upgraded in order to access the funds in it. They usually guide users to download a wallet app from the app store to make it look like they are guiding users through the normal process of creating a wallet.

Import wallet address: The scammer then asks the user to import the address into a wallet in watch wallet mode, which enables the user to see the wallets balance, which may contain a large amount of cryptocurrency. The scammer will then go on to claim that the user needs to pay a gas fee or deposit additional cryptocurrency into the specified wallet address, a trick to make the user believe that they need to pay a fee to unlock the funds in that wallet address.

Stealing funds: Once the user sends funds to the scammer’s address, they will not receive anything in return and the scammer will disappear. In other cases, the scammer may continue to request more funds to be deposited or transferred to the wallet address under other false pretenses or promises.

Why does this scam work?

This scam works because users often do not fully understand that due to the transparency of the blockchain, all wallet addresses are trackable and viewable on-chain, and viewing the balance in a wallet address may mislead an inexperienced user into thinking that this is equivalent to accessing or owning the wallet, when in fact it is just viewing.

In this scam, the scammers take advantage of the victims lack of knowledge about observing wallet patterns, and on the other hand, they stimulate the victims greed or compassion through the chat process, giving them an opportunity to take advantage of them.

How can you protect yourself? It’s simple. If you are using SafePal or any other decentralized or non-custodial crypto wallet, be sure to pay attention to the following safety tips to avoid falling for these scams:

• Don’t trust private messages from strangers: Under normal circumstances, the official wallet team will never contact users through social media or direct messages (DM). Any messages that actively offer help and opportunities to make money, or ask for personal information should be treated with extreme caution;

• Understand observation mode or view on-chain wallet address: Whether it is SafePal or other non-custodial wallets, observation wallet mode is a feature for viewing wallet balances only. It allows users to track wallet balances and transaction history, but does not allow any transfers or withdrawals (actual access to the specified wallet address requires a private key or mnemonic phrase). Users cannot transfer funds from their wallets in observation mode, so if someone asks you to unlock or access funds in observation wallet mode, dont doubt it, its a scam;

• Avoid sending funds to unknown addresses: If someone asks you to send funds to an unknown address to unlock your crypto assets, this is a red flag. Scammers usually ask users to pay Gas Fee or other fees, but SafePal and most regular wallet platforms never require users to transfer funds to a specific address to unlock funds;

• Only download apps from official websites: Make sure you only download wallet apps from official app stores such as Google Play Store or Apple App Store. Avoid downloading from unverified websites or links as these apps may be malicious or scam apps.

• Report suspicious activity: If you encounter suspicious messages or potential scams, please report them to the official wallet channels immediately to help protect the community and prevent others from becoming victims of scams;

Conclusion

Not Your Key, Not Your COIN.

This is actually the cruelest sentence in Web3. After all, decentralization and security principal responsibility are two sides of the same coin. When the ownership of assets is truly returned to individual control, it also forces each user to be responsible for their own assets and completely walk into the dark forest.

Therefore, with the diversification of on-chain fraud methods, learning and understanding the working principles of blockchain non-custodial and decentralized wallets, and understanding common fraud methods, have become an indispensable survival skill for every Web3 user.

Staying vigilant at all times and safely crossing the on-chain dark forest is a compulsory course for each of us to adapt to the rules of the decentralized world.

This article is sourced from the internet: Dark Forest Crossing Manual | Detailed explanation of the anti-theft guide under the new trap of Observation Wallet

Related: What is the actual experience of Coinbase鈥檚 AI agent Based Agent?

Original author: Karen, Foresight News Last week, Coinbase launched an AI-powered on-chain interactive agent called Based Agent. Based Agent is an AI-driven autonomous agent that interacts with Base L2 through the Coinbase Developer Platform (CDP) and OpenAIs official multi-agent collaboration framework Swarm to achieve on-chain operations such as token creation, NFT deployment, and asset transfer. Based Agent provides a simple setup on the online programming environment Replit, allowing you to explore autonomous blockchain interactions without manual coding, including autonomous execution, token deployment, NFT deployment, asset transfer, balance check, ETH faucet request, artwork generation through DALL-E (using AI to generate artwork), etc. So what is the actual experience of Based Agent? Today, Foresight News will take you through the Based Agent experience. Before you begin, make sure you have completed the…