Recently, Hayden Adams, the founder of Uniswap, took to social media to warn the crypto community about a new wave of scams targeting users through deceptive user interfaces (UIs) in crypto wallets. Adams highlighted how scammers are using fake clones of Ethereum Name Service (ENS) domains to trick users into sending funds to the wrong addresses.
The scam involves fraudsters purchasing ENS domains that closely resemble legitimate Ethereum addresses by substituting alphabetic characters with alphanumeric sequences. When users input the actual Ethereum address into their crypto wallet UIs, the scammers’ address is displayed instead of the intended recipient’s, potentially leading to funds being sent to the wrong destination unknowingly.
Adams emphasized the need for interfaces to implement filters to combat these scams and advised users to exercise caution. He stressed the importance of UIs filtering out such deceptive practices to protect users from falling victim to these fraudulent schemes.
Following Adams’ alert, Nick Johnson, the founder of ENS, shared his perspective on the matter. Johnson suggested that interfaces should not autocomplete names at all to avoid the risk of users mistakenly sending funds to the wrong addresses. Such practices are discouraged in their user experience (UX) guidelines to prevent users from falling prey to deceptive UI scams.
ENS, which stands for Ethereum Name Service, is a domain name system built on the Ethereum blockchain. It allows users to replace complex Ethereum addresses with more user-friendly and recognizable names like “myname.eth.” While ENS simplifies the process of sending and receiving funds, it also opens up opportunities for scammers to exploit unsuspecting users through deceptive domain names.
In previous incidents, scammers have used ENS domains to mimic wallets of major exchanges by registering multiple domains that closely resemble highly active Ethereum addresses. By adding “.eth” to the end of these addresses, scammers aim to intercept payments directed to these fake domains, taking advantage of the widespread support for ENS domains in wallets.
The rise of deceptive UI scams in crypto wallets underscores the importance of vigilance and caution when conducting transactions in the digital asset space. Users must be mindful of the risks posed by fraudulent schemes and take steps to protect themselves from falling victim to such deceptive practices. As the crypto industry continues to evolve, staying informed and adopting best practices in security and user interface design are essential in safeguarding against potential threats.