Beware of New Ethereum Node Scam: USDT Fraud Exposed
Crypto Scammers exploit Ethereum nodes and USDT to deceive crypto users. How are they pulling it off and what essential tips can help you protect yourself against these crypto scams?
Which topics should we dive deeper into?
Select what genuinely interests you. Your picks feed directly into our editorial planning.
Crypto news that's actually worth your time.
Weekly. 60 seconds. Carefully curated by our editors: no hype, no promo flood, no spam.
Recent news has surfaced highlighting a concerning trend in crypto scams that target unsuspecting users through offline transactions. This scheme utilizes USDT (Tether) and manipulates Ethereum nodes to deceive users into believing false transactions. Here is all you need to know:
Can Ethereum Node be hacked?
Crypto Scammers entice users to download the legitimate imToken wallet, initially using 1 USDT and a small amount of ETH to gain trust. They then instruct users to modify their Ethereum RPC address to the scammer's node, which has been altered using Tenderly's Fork function. This alteration falsifies the user's USDT balance, making it appear as though the crypto scammer has sent funds. When users attempt to transfer miner fees to access the USDT, they discover the deception, by which time the scammer has vanished.
Risks of Modified Nodes
Tenderly's Fork function, beyond modifying balances, can alter contract information, posing substantial risks to users. RPC connections allow users to interact with blockchains, but linking wallets to untrusted nodes can lead to manipulated balance and transaction displays, resulting in financial losses.
On-chain Analysis Reveals Scam Patterns
Some on-chain tracking tools have identified victims who received 1 USDT and 0.002 ETH, subsequently transferring funds to other addresses, indicating multiple scams originating from one address.
How Is User Psychology Involved?
Crypto Scammers exploit users' tendency to overlook potential risks, focusing solely on wallet balances. These Crypto Scammers deceive users who trust such operations by executing seemingly authentic transactions, such as small fund transfers.
Tips for Prevention
To prevent crypto scams and mitigate those risks, users must exercise caution during transactions, maintain awareness, avoid undue trust in others, and prioritize self-protection to safeguard against property damage. And always consider the apps offering safer transactions, as many are now aware of such scams and differentiating themselves by offering additional services providing additional safety layers, such as Bitpanda's new #Safe tools.
Related articles
Which topics should we dive deeper into?
Select what genuinely interests you. Your picks feed directly into our editorial planning.
Crypto news that's actually worth your time.
Weekly. 60 seconds. Carefully curated by our editors: no hype, no promo flood, no spam.
October 13, 2018 10:22 PM
Duo Security Discloses Crypto Scam Botnet On Twitter
Duo Security, an Austin based cybersecurity company has disclosed a huge and sophisticated botnet crypto fraud scam On Twitter.
August 3, 2022 9:22 AM
What are the BEST Ethereum Wallets in 2022?
What are the best Ethereum wallets in 2022? In this article, we talk about the best Ethereum wallets for 2022 and help you pick the best.
December 22, 2020 3:49 PM
Crypto Wallet Provider Ledger Hacked: Data Leak Results in Phishing Scams
Ledger, a cryptocurrency wallet provider has encountered a data breach. The official Twitter account of the hardware wallet tweeted that they have been alerted to the dump of a client database.
October 12, 2018 1:57 AM
Belgium Warns of 19 Probable Fraudulent Cryptocurrency Exchanges
Lately, numerous cryptocurrency exchanging platforms have showed up on the web. They all claim to offer the best (or truly outstanding) exchanging platform(s), empowering the novices and experts to exchange digital currencies in a matter of seconds and with full […]
March 12, 2020 1:12 PM
What Is A Cold Wallet? And Why Is It Important?
A cold wallet is a wallet which is completely offline and used for storing cryptocurrencies. It is also known as cold storage.
January 20, 2025 1:50 PM
Ethereum Price Prediction with Vitalik Buterin New Leadership after ETH Price Struggles in Bitcoin's Shadow
ETH price struggles with Bitcoin’s dominance, Trump’s crypto moves, and the Solana blockchain surge. As Vitalik Buterin announces leadership changes to reshape Ethereum’s future, what to expect for Ethereum price and blockchain?
January 12, 2024 12:27 PM
Guide to Choosing the Best Crypto Wallets in 2024
Explore the best crypto wallets of 2024 in our comprehensive guide. Discover top choices for security, convenience, and versatility in cryptocurrency management.
February 24, 2019 1:31 PM
MEW Launches KYC-less Crypto-to-Fiat Platform
Cryptocurrency wallet MyEtherWallet (MEW) in association with crypto investment company Bity has launched a platform to convert cryptocurrency to fiat without Know Your Customer (KYC) specifications. MEW declared the news in a blog post issued on Feb. 20. According to […]
October 20, 2023 9:53 PM
How to Keep Crypto Safe
Ensuring the safety of your cryptos is paramount. We will guide you through the steps to secure your digital wealth and to keep crypto safe.
May 22, 2024 7:27 PM
SEC 'APPROVES' Ethereum Spot ETF: Will It Happen TOMORROW?
May 23rd is the anticipated day for SEC to announce its decision concerning ETH spot ETF. In less than 24 hours, an approval, rejection, or postponement will be among the top headlines, but what do analysts foresee?
August 2, 2024 10:32 PM
Ethereum Price Crash: What Next Support Levels For ETH Price Below $3K?
Ethereum fees just hit their lowest since late 2023, and now Ethereum price is trading near $3K with a high potential to drop below it... What's next?
May 17, 2023 7:40 PM
WARNING: Ledger can read Private keys – New Controversial Feature?
Ledger alternatives: Let's explores the details of the new private key extraction feature, and the reasons behind the concerns it has generated.
October 17, 2021 3:57 PM
Top 5 Metamask Alternatives
The cryptocurrency world is full of innovations and exciting things. One such innovation is Metamask. But this post is all about the top 5 Metamask alternatives.
October 19, 2018 5:06 PM
Scammers Impersonate as Telegram CEO to Steal BTC and ETH
Pavel Durov is the founder of VK (the Russian social media site that dominates the social media market in Russia, and other Slavonic countries), and also founder and CEO of Telegram Messenger, which is a cloud-based instant messaging system based […]
August 22, 2018 12:54 PM
FTC Warns About Bitcoin Blackmail Scam
FTC, the Federal Trade Commission, an agency of the US government has warned cryptocurrency investors and enthusiasts about bitcoin blackmail scam.
July 23, 2024 9:09 AM
Ethereum Price Prediction: Will ETH price reach $5K With The Launch Of ETH ETF?
With Spot ETH ETF trading launched today, what can you expect for Ethereum price and other altcoins, a surge or dip?
May 24, 2024 1:47 PM
SEC Approves Ethereum ETFs: A New Era for Crypto Investments
As SEC approves spot Ethereum ETFs, a signal of a new era for crypto investments is launched. But what are the implications expected on the crypto market and what does this mean for investors?
April 1, 2026 1:06 PM
Major Security Breach: Ethereum Blockchain "Hacked" Following 2026 Roadmap Update
Reports of a fundamental compromise of the Ethereum blockchain sent shockwaves through the DeFi ecosystem today, sparking a massive sell-off before the truth emerged.
February 24, 2026 4:28 PM
Can Ethereum Price Crash to $0? Analyzing Ethereum Blockchain
Ethereum's price is under pressure as the crypto market faces a downturn. We analyze if ETH can truly hit $0 and what its ecosystem value means for the future.
January 27, 2023 5:16 PM
Ethereum Prediction for February 2023 – Are things looking good for ETH?
Will Ethereum price continue to rise or will there be a crash? Let's analyze in this Ethereum prediction for February 2023.
November 23, 2021 11:00 PM
How To Purchase Ethereum On Kraken
In this article, we will be taking you through all the steps you need to undergo to purchase Ethereum on Kraken crypto exchange.
December 10, 2023 6:10 AM
Tether Freezes 40 Crypto Wallets
Tether enhances security by freezing 41 wallets, showcasing its commitment to a safer, more reliable cryptocurrency ecosystem.
August 22, 2026 4:16 PM
Stolen Crypto: Where You Actually File a Report and What Counts in the First Hours
After a theft most people google first and preserve the evidence last, when the right order is the other way round. What you have to record in the first hours, where private individuals actually turn, and where the limit of what is possible lies.
December 23, 2018 2:41 PM
Facebook finally entering the crypto space
Recently, everyone is trying to get onto the crypto bandwagon, and now its Facebook’s turn. Facebook has not always been that friendly with crypto. This year in January, Facebook banned all crypto related ads fearing it would lead to scamming […]
January 27, 2022 11:03 AM
How to Avoid Crypto Scams? Don’t be a Victim of Squid Tokens in 2022
In this article, we will be looking at the new SQUID token and how traders can avoid rug pulls while investing in digital assets.
More from CryptoTicker