Pi Network is the first cryptocurrency project in 2023 to raise concerns over the possibility of it’s users been scammed or lost crypto assets by trying to transact with the Pi token being listed on various exchanges as IOU recently.
As soon as the PiCoin was listed, the Core Team acted to protect the community against cryptocurrency fraud. They continue to maintain their position that they have no affiliates and have not given their token permission to be listed as IOU on any exchanges.
They raised concern about the fact that the enclosed mainnet of the Pi Network prevents it from connecting to other platforms or blockchains and, as a result, the token can not be listed on exchanges.
MetaMask shares same fate
Digital wallet service MetaMask issued a warning about an “address poisoning scam” in which criminals “poison” users’ transaction history by giving them tokens with no value to their wallets. The first and last characters of the wallet address of their victim will be matched by the scammers, who will use wallet addresses created by vanity address generators. Unaware users send their money to the incorrect imitation address as a result of similarity.
A new scam called 'Address Poisoning' is on the rise. Here's how it works: after you send a normal transaction, the scammer sends a $0 token txn, 'poisoning' the txn history. (1/3)
— MetaMask Support (@MetaMaskSupport) January 11, 2023
Although the attempt would not grant the hackers access to user wallets, those who may have developed the habit of copying their wallet address from the transaction history before sending digital asset balances could potentially send their funds to replica addresses.
The wallet provider advised users to always exercise caution and to confirm their transactions before transferring their assets. The company emphasized that, in order to verify that the funds are transferred to the right wallet, it would be important to carefully review each and every character of the wallet address.
They use an address with the same first & last few characters as the real transaction you sent; in hopes you will not check the full address, and instead copy theirs in a future txn. (2/3) – More detail here: https://t.co/xGxNgRX4WM)
— MetaMask Support (@MetaMaskSupport) January 11, 2023
In addition, the company advised customers to send digital assets using their address book rather than copying wallet addresses from their transaction history.
