Scam Protection: These Tools Protect Your Cryptocurrencies

Securing cryptocurrencies is not easy for beginners. Primarily, it involves adhering to best practices—guidelines that not only protect cryptocurrencies but are also seen as general IT security measures. This includes secure passwords managed with a password manager or using antivirus software.

If these and other key elements are considered, a solid foundational protection is already in place. More specific tips focus on how and where to store your cryptocurrencies. Even when these security aspects are covered, there are additional measures that can be taken.

Several tools and platforms on the market are dedicated to security and protection. We show you how to further secure yourself and how you can benefit the most from these solutions.

Phishing: The Ever-Present Risk

Phishing attacks pose a significant risk to both consumers and businesses. Phishing is particularly attractive to criminals because it can be scaled almost infinitely. Fake emails, fraudulent websites, and social media accounts make this possible. For attackers, it is often crucial to reach as many potential victims as possible. Only in rare cases do they take the time and resources to target specific individuals or employees directly.

In addition to personal data, criminals primarily target the seed phrase, which gives them ultimate access to the victim's cryptocurrencies. They rely on the cooperation of the victims, who usually enter their seed phrase on suspicious websites. Often, these are bait offers that promise, for example, an NFT if the wallet is verified with the seed phrase. Instead of a free giveaway, however, the perpetrators immediately empty the victims' wallets and initially disappear without a trace.

Alternatively, the wallet is emptied via a "command." Therefore, the perpetrators avoid the highly suspicious request for the seed phrase. Instead, they use a smart contract to steal cryptocurrencies and NFTs. Blind signing has been criticized for some time because users can confirm or reject actions on their wallets but do not know what they are agreeing to. There is indeed the possibility of using clear signing, where actions are presented in a human-readable form as advance information. A change in industry standards is already being discussed, but since these are not binding norms, it may take some time before all DeFi protocols change their modus operandi accordingly.

If scammers manage to convince their victims that they have received an airdrop or need to protect their wallet, they often agree blindly and then cannot do anything when the malicious smart contract transfers all assets to the scammers' address.

The best protection for digital assets is thus ensured through a series of measures. On the one hand, by adhering to best practices when securing the wallet, and on the other, by being cautious when dealing with social media and general online behavior. This also includes healthy skepticism because, after all, it involves money, often large sums.

Another component of digital security is tools that focus on protecting users.

These Tools Protect Cryptocurrencies

The following list is not exhaustive but provides an overview of software that is useful for end users. Of course, there are different providers or open-source solutions in each category that you can use. We consider the following programs useful but also recommend using other software. Ultimately, it is important to use certain tools to protect yourself, not necessarily who provides them.

Additionally, our list includes software capable of protecting end users from executing malicious smart contracts by analyzing transactions during blind signing.

Bitwarden

The password manager Bitwarden is open-source software and is available to users for free. There is also a paid version that offers certain advantages to businesses. Bitwarden can generate secure passwords, can itself be secured with 2FA, and is available on all devices and operating systems. This allows you to diversify your login data and ensure a high level of security.

Netcraft Extension

This is a browser extension or plugin that actively checks the pages visited. The software warns of known forgeries and can also detect malicious JavaScript. The plugin is thus a useful addition to make browsing much safer. However, one should not solely rely on the plugin but also always check for oneself when a website prompts interaction with one’s wallet.

Wallet Guard

Bei Wallet Guard is a powerful browser plugin specifically designed to protect users from potential risks when dealing with cryptocurrencies. It offers a multi-layered security analysis, including a URL scanner and transaction simulation. The URL scanner checks both Web3 and Web2 websites for security risks, while the transaction simulation detects all events related to smart contracts and provides detailed information before a transaction is carried out. Wallet Guard protects users from fraudulent websites and unwanted transactions by identifying potential threats and warning the user.

Blockfence

Blockfence is also a browser plugin that provides comprehensive protection against fraud for crypto users. It uses AI and machine learning to detect threats in real-time and issue warnings before harmful transactions are executed. Blockfence deciphers complex transactions and presents the information in an understandable way, allowing users to make informed decisions. Additionally, Blockfence fully respects user privacy, as it has no control over their wallets and does not collect personal data. Blockfence is a security solution that is continuously developed to protect against the latest threats in the crypto space, with a strong focus on its community.

Blowfish

This browser plugin was specifically developed to protect crypto users from the risks associated with interacting with smart contracts and Web3 applications. It stands out with its ability to identify potentially harmful transactions and inform the user in real-time before confirming a dangerous action. What makes Blowfish special is its function that allows users to see transactions and smart contract interactions in clear, understandable language before they approve them. This reduces the risk of blind signing, where users unknowingly agree to a transaction without fully understanding its consequences. Additionally, Blowfish offers extensive security analysis for each transaction and monitors suspicious activities on websites linked to Web3 applications. The plugin is easy to install and supports several popular browsers, making it an essential tool for navigating the crypto world safely.

Web3 Antivirus (W3A)

The versatile security plugin developed specifically for the Web3 world. It provides comprehensive protection for users who regularly interact with cryptocurrencies and dApps. W3A stands out for its ability to detect and counter both known and emerging threats in real-time. The plugin analyzes transactions and smart contracts before they are confirmed by users, ensuring that all information is presented in a clear and understandable form. This reduces the risk of blind signing and protects users from fraudulent or harmful activities that could endanger their digital assets. Additionally, W3A monitors websites to detect suspicious activities and blocks potentially dangerous connections before they can cause harm. The plugin seamlessly integrates with popular browsers like Chrome, Firefox, and Edge and offers an additional layer of protection against phishing attempts and other cyber threats in the Web3 space.

What can these tools not achieve or replace?

Tools like Wallet Guard, Blockfence, TrustCheck, and Web3 Antivirus (W3A) offer valuable protection mechanisms for users dealing with cryptocurrencies and decentralized applications. They can identify potentially harmful transactions, warn against phishing websites, and inform the user of exactly what they are consenting to before executing a transaction. However, there are limitations within which this software operates, and users should be aware of these boundaries.

Firstly, these tools can only recognize known threats and patterns. They rely on databases and algorithms that must be constantly updated to keep up with the rapidly evolving threat landscape. New, previously unknown attacks might not be immediately recognized by these tools, as the necessary signatures or patterns are not yet in their databases. This means that users may still fall victim to novel scams despite the protection measures.

Firstly, these tools can only recognize known threats and patterns. They rely on databases and algorithms that must be constantly updated to keep up with the rapidly evolving threat landscape. New, previously unknown attacks might not be immediately recognized by these tools, as the necessary signatures or patterns are not yet in their databases. This means that users may still fall victim to novel scams despite the protection measures.

Another limitation of these tools lies in their dependency on the browsers and wallet software used. If there are security vulnerabilities in the underlying infrastructure that the plugin does not cover, protection can be circumvented. Additionally, many of these tools are limited to the browser interface and do not offer protection for transactions that occur outside this scope, such as through direct wallet interactions or mobile apps.

Users should also be aware that these tools cannot replace basic security practices. Secure password management, the use of hardware wallets, avoiding suspicious links, and awareness of social engineering remain essential. It is crucial that users exercise diligence and do not rely solely on the software's protective functions to safely interact with decentralized applications. The best security arises from a combination of technological tools and a conscious, informed approach to handling digital resources.

What should I do if I fall victim to a scam?

Generally, these tools cannot reverse transactions. If you have agreed to a malicious smart contract or given away your seed phrase, the funds cannot be directly recovered. However, there are effective ways to combat this form of digital theft.

CryptoTracing can help track down the perpetrators through blockchain analysis, as their transactions with cryptocurrencies can be thoroughly evaluated. Together with our partner attorney, we can use this documentation and collected evidence to file a report and initiate the prosecution of the perpetrators. In many cases, it is possible to recover the funds this way, although success always depends on the specific circumstances of the case.

If you have fallen victim to a crypto scam and need help, you can submit a request through our contact form and receive a free initial assessment. Don't write off your cryptocurrencies—fight back!

FAQ Scam-Protection Tools