A token approval scam is a form of digital asset fraud where malicious actors deceive users into granting unlimited spending permissions for their tokens to a fraudulent smart contract. Once this approval is given, the scammer can drain the victim’s wallet of those specific tokens without requiring further individual authorization. This attack vector exploits the approval mechanism common in ERC-20 tokens. Vigilance is essential to avoid such unauthorized asset transfers.
Context
Token approval scams are frequently reported in crypto news, highlighting a prevalent method of digital asset theft in the decentralized finance (DeFi) space. These scams often commence with phishing links or counterfeit decentralized applications that prompt users to sign seemingly harmless transactions. The ongoing discussion emphasizes the importance of meticulously reviewing smart contract interactions and revoking unnecessary token approvals to protect digital assets.
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