“Payzero” Scams and The Evolution of Asset Theft in Web3

“Payzero” Scams and The Evolution of Asset Theft in Web3

Cyber Threats

In this entry, we discuss a Web3 fraud scenario where scammers target potential victims via fake smart contracts, and then take over their digital assets, such as NFT tokens, without paying. We named this scam “Payzero”.

By: Fyodor Yarochkin, Vladimir Kropotov, Jay Liao January 18, 2023 Read time:  ( words)

Web3 is a lucrative emerging technology where many participants seek quick profit via the different methods of monetization for their online assets. What makes Web3 different from what’s typically called Web2 is that its  users are not only participants but are also the owners of digital assets. Web3 users no longer employ the traditional user and password method for authentication. Instead, the user owns a pair of cryptographic keys and sign the messages. The signature is then used to validate and authenticate user actions.

Compared to Web2, this adds a new layer of complexity as the new paradigm and authentication mechanism can be challenging to comprehend. In Web2, users can employ usernames and passwords for authentication with large online service providers. These companies can then cover the authentication process against third party applications, leaving users to be responsible for remembering the usernames and passwords they use for these service providers.

In Web3, the most import credential — the private

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