Malicious Token Approval

Definition ∞ Malicious token approval is an unauthorized or unknowingly granted permission for a smart contract or third-party application to spend a user’s digital tokens. This occurs when a user interacts with a deceptive decentralized application or signs a malicious transaction, granting an attacker control over their assets. Such approvals can lead to the complete draining of a user’s wallet without further interaction.
Context ∞ Malicious token approvals represent a significant security vulnerability within decentralized finance (DeFi), frequently resulting in substantial asset losses. Users must exercise extreme caution when interacting with new protocols or signing transaction requests. Tools and best practices for revoking token approvals are gaining prominence as a necessary security measure.