In response to reports of a new scam involving fake approval transactions, the approval management platform Revoke has introduced an update to safeguard users against this fraudulent activity. Scammers have been exploiting crypto users by enticing them into revoking “fake approvals” and subsequently charging them exorbitant transaction fees.
The scam relies on the use of “gas tokens,” which were initially developed as a means to store low-cost gas during periods of low network demand on the Ethereum blockchain. By minting gas tokens when fees were inexpensive and burning them when fees spiked, users could take advantage of lower costs. However, scammers have now created counterfeit gas tokens that they distribute alongside false approval transactions, tricking victims into believing they need to revoke these approvals.
Upon revoking the fake approvals, the manipulated gas tokens generate a substantial amount of gas, with the newly minted tokens being sent back to the scammers. Consequently, victims find themselves burdened with high transaction fees. Recognizing the severity of the issue, Revoke has implemented a solution that disables approval revocation if an excessive gas fee is detected.
Revoke advises users to disregard these fake approvals and tokens, emphasizing that as long as no interaction occurs, funds cannot be stolen. The platform’s primary purpose is to facilitate safer crypto wallet practices by enabling users to manage or revoke active approvals that are no longer necessary within DeFi protocols.
Additionally, platforms like Revoke have been encouraging users to revoke approvals for Multichain following a recent network exploit that resulted in multimillion-dollar losses. Exploiting this situation, scammers have found a new avenue to deceive victims into approving their fraudulent transaction revokes.
Through its latest update, Revoke aims to mitigate the risks associated with the gas token approval scam, providing users with enhanced protection against fraudulent transactions. By raising awareness and offering preventive measures, Revoke contributes to the overall security of cryptocurrency transactions and fosters trust within the DeFi ecosystem.