scamawareness

Multisig wallets are especially useful for people working in teams or those who want an extra layer of security. But here’s the catch: scammers can also use multisig wallets to trick users and steal their cryptocurrencies. Let’s take a closer look at how multisig wallets work and some of the most common multisig scams.
What Is a Multisig Wallet?
In the cryptocurrency world, a multisig (multi-signature) wallet is a type of wallet that requires more than one private key to authorize a transaction. They are like the digital equivalent of two-factor authentication (2FA), requiring two or more approvals (signatures) before a transaction can happen.
You can set up a multisig wallet with different requirements, such as needing two out of three keys or three out of five, and so on. It’s like having multiple keys to a vault, where no one person can unlock it without the others.
Multisig wallets are commonly used in business collaborations, DAOs (decentralized autonomous organizations), and joint ventures. They can also be useful for family funds or anyone who wants a bit of added security for their digital assets.
Multisig wallets are often used to increase security, so how exactly are these wallets being used to scam people?
What Is a Multisig Scam?
The logic behind the scam is quite simple: scammers make victims believe they have full access to a crypto wallet when, in reality, they don’t. Below is an example of a scammer comment on a YouTube video:

You might come across many variations of this scam on YouTube, Twitter, Telegram, and other social media platforms, but their message will always include a private key or a seed phrase. If it’s your first time seeing it, you might be tricked into thinking it’s a new user asking for help, but don’t get fooled.
How Does a Multisig Scam Work?
There are different types of multisig scams, and they are particularly common on the Tron network due to the way Tron multisig wallets work. 
Some of the more elaborate multisig scams focus on tricking users into making their wallets multisig and adding the scammer as a co-owner. Once the scammers gain this level of control, they can effectively trap the funds or, in some cases, steal them directly.
These scams are usually related to phishing or impersonation fraud, where scammers pretend to be from a reliable customer support team. 
However, one of the most common multisig scams is much simpler and doesn’t require users to share their seed phrase or private keys. Instead, it’s designed to trick users into sending crypto to the scammer in an attempt to get funds from their multisig wallet. Let’s go through a common example.
Multisig scam bait using SafePal
To illustrate how the scam works, we will use the seed phrase shared in the YouTube comment we discussed above. First, we installed the SafePal wallet extension and imported the scammer’s wallet using the seed phrase provided.
With the wallet open, we can see that the scammer has 2,022 USDT as a TRC-20 token in the Tron network. At this point, most victims will try to transfer the USDT out of the scammer’s wallet.

However, the wallet doesn’t have enough TRX to pay for transaction fees. This is where the victim is tricked into sending TRX to the scammer’s wallet.
The scammer preys on greedy victims who rush to open the wallet in an attempt to take the funds. They quickly send crypto to the wallet to pay for fees but soon realize they can’t make any transactions because it’s a multisig wallet.
Remember, these wallets require multiple private keys (signatures) to approve a transfer. So, even if you have one of the keys, you won’t be able to sign transactions.
The good news is that if you fall victim to such a scam, you are probably losing a relatively small amount of crypto (whatever value you sent to pay for gas fees). However, the more sophisticated multisig scams we mentioned earlier can target your crypto wallet directly, potentially leading to much bigger losses.
Checking the scammer’s wallet address
If we search for the scammer’s wallet address (ending in Kk78Z) on the TronScan blockchain explorer, we will notice that the account is controlled by another address (ending in bHCoc). This is what a multisig wallet looks like on the Tron network.

Tron multisig wallets can be set up in many different ways. The wallet’s permission can be customized according to the weight given to each multisig account. 
In the example above, the scammer’s account (ending in bHCoc) has full access to the multisig wallet (“Owner Permission”), while the account used to bait victims (ending in Kk78Z) has only limited functionality.
How to Avoid Multisig Scams
To avoid multisig scams and other types of fraud, you should keep your personal information private, avoid using stranger’s seed phrases or private keys, and watch out for phishing emails and websites.
1. Keep your private keys and seed phrases private
No legitimate company, wallet provider, or crypto exchange will ever ask for your private keys or seed phrases. Keep them in a secure location and never share them with anyone.
2. Stick to official wallet apps and software
Only use wallet software and apps that come from trusted, official sources. There are many fake crypto wallets and exchanges, so double-check the URL and verify app authenticity before using them.
3. Regularly audit your wallet permissions
A good habit for multisig users is to check who has access to your wallet on a regular basis. Most wallets will let you review permissions in the settings. If you spot any unauthorized signatories, remove them immediately. You should also remove permissions of DeFi apps you no longer use.
4. Use hardware wallets for added security
Hardware wallets are physical devices that store your crypto offline. Even if someone compromises your multisig setup, they won’t be able to move funds without the hardware wallet's physical confirmation.
5. Enable two-factor authentication (2FA)
Most wallet providers and exchanges offer 2FA. Enabling it can add an extra layer of security, preventing unauthorized access to your wallet.
6. Stay informed
Cryptocurrency security is an ever-evolving field. New scams and tactics appear regularly, so it’s important to stay informed and keep learning about the latest threats and best security practices.
7. Wallet warnings
Unfortunately, it’s not always easy to tell if a wallet is multisig or not. However, due to the growing number of scams, some wallet providers have added security features that warn users about potentially dangerous wallets. 
Below are examples from SafePal and Trust Wallet, warning users that funds are blocked.

$ADA
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🚨📢📢 Scam Type How It Works The Red Flag$BTC
Pig Butchering Scammers build a "relationship" (romance or friendship) over weeks before suggesting a "guaranteed" crypto investment. They move the conversation to WhatsApp/Telegram and pressure you to use a specific, unknown platform.$PIPE
AI Trading Bots Fraudsters promise high returns using a "proprietary" or "secret" AI algorithm that never loses. "Guaranteed" returns. No legitimate trading bot can guarantee profits in a volatile market.$SOL
Fake "Liquidity" Fees You see "profits" on a site, but when you try to withdraw, they demand an "unlock fee" or "tax" payment first. Never pay money to get your money back. Legitimate exchanges deduct fees from the balance, they don't ask for more.
Deepfake Giveaways AI-generated videos of celebrities (like Elon Musk or Vitalik Buterin) promoting "doubling" your crypto. If you have to send crypto to "verify" your address or "double" your money, it's a scam...
#BTC走势分析 #MarketRebound #ScamAwareness #cryptouniverseofficial #Binance

The contemporary cybersecurity landscape is increasingly defined by sophisticated social engineering tactics, with "smishing"—or SMS phishing—emerging as a primary vector for identity theft. In late 2025, a significant fraudulent campaign surfaced, targeting residents of New York State by exploiting the distribution of legitimate inflation relief checks. This specific exploitation of public policy initiatives demonstrates a calculated effort by threat actors to leverage administrative timelines and economic anxiety to bypass the critical faculties of the general public.
The architecture of this scam relies on the impersonation of a fictitious entity titled the "New York Department of Revenue." This nomenclature is a deliberate, albeit inaccurate, approximation of the New York State Department of Taxation and Finance. By utilizing authoritative language and citing non-existent statutes, such as "Section 19322 of the New York Revenue and Taxation Code," attackers create a facade of legal legitimacy. The primary objective is to induce a state of urgency, compelling the recipient to interact with a malicious hyperlink under the guise of "confirming eligibility" or "verifying banking credentials" to facilitate a refund.
From a technical perspective, these malicious links direct users to credential-harvesting sites designed to mirror official government portals. Once a user inputs their Social Security number, banking information, or personal identifiers, the data is exfiltrated to command-and-control servers for use in secondary financial fraud or the sale of PII (Personally Identifiable Information) on dark web marketplaces. The efficacy of the scam is bolstered by its timing, as it coincides with the actual 2025 legislative rollout of state-issued checks, thereby reducing the psychological threshold for suspicion.
Mitigation of these threats requires a dual approach of institutional vigilance and public education. It is imperative to note that the New York State Department of Taxation and Finance maintains a strict policy of communicating sensitive tax matters via physical mail and secure online portals, rather than unencrypted mobile messaging. Furthermore, the 2025 inflation refunds are structured as automatic disbursements, requiring no proactive submission of data from eligible taxpayers. Recognizing these procedural discrepancies is essential for neutralizing the impact of smishing operations.
#ScamAwareness #Smishing
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$USDC

A 24-year-old man said to be a mastermind behind the recent crimes was taken into custody in Tangier, authorities said.
#scamriskwarning #ScamAwareness

The crypto space, once a Wild West of decentralized finance, is increasingly becoming a battleground for sophisticated criminals. As the value of cryptocurrencies fluctuates, the allure of easy gains attracts both legitimate investors and those with malicious intent. Recent events highlight an alarming trend: the convergence of advanced technologies, like AI, with traditional criminal tactics to exploit crypto investors.
The Rise of AI-Powered Romance Scams
The Hong Kong police's dismantling of a crypto crime syndicate underscores the chilling sophistication of modern-day scams. These criminals employed AI-generated personas of wealthy, single women to lure unsuspecting victims into romantic relationships. Leveraging deepfakes and sophisticated chatbots, they manipulated emotions and trust, ultimately defrauding victims of substantial crypto holdings. This case serves as a stark reminder that the digital world can be a breeding ground for deception, where lines between reality and artificiality blur.
The Threat of Crypto-Fueled Kidnappings
The attempted kidnapping of a Canadian crypto forum moderator highlights the escalating risks faced by individuals perceived to possess significant crypto wealth. These attacks, driven by the perceived ease of accessing and transferring cryptocurrencies, pose a severe threat to both physical and financial security. The anonymity and speed of crypto transactions make them attractive targets for criminals seeking quick and untraceable gains.
The Growing Landscape of Crypto Crime
According to Jameson Lopp, there have been nearly 200 violent crypto crimes between 2014 and 2024. This data underscores the increasing prevalence of criminal activity targeting the crypto ecosystem. These crimes range from sophisticated hacking and phishing attacks to physical assaults and kidnappings, demonstrating the evolving nature of threats faced by crypto investors.
Precautions for Crypto Investors
Given the escalating risks, it's crucial for crypto investors to adopt a proactive approach to security:
Verify Information: Be highly skeptical of unsolicited communication, especially those involving romantic interests. Verify the authenticity of profiles and communication channels independently.Enable Two-Factor Authentication (2FA): 2FA adds an extra layer of security to your crypto accounts, making it significantly harder for unauthorized individuals to access your funds.Diversify Your Portfolio: Avoid concentrating your crypto holdings in a single asset or exchange. Diversification can mitigate losses in case of hacks or scams.Stay Informed: Keep abreast of the latest security threats and best practices. Follow reputable crypto news sources and engage with the community to learn from others' experiences.Report Suspicious Activity: Report any suspicious activity to the relevant authorities and crypto exchanges. This helps law enforcement agencies track down and apprehend criminals.

The crypto landscape is constantly evolving, and so are the threats faced by investors. By understanding the evolving nature of crypto crime and taking proactive steps to enhance their security, investors can navigate the challenges and minimize their exposure to risks. Global collaboration among law enforcement agencies is crucial to effectively combat these threats and ensure the long-term sustainability of the crypto ecosystem.

#scamriskwarning #ScamAwareness #Crypto #CryptoCrime #BinanceSquareFamily