Using a honeypot checker is an effective way to protect your cryptocurrencies from scams. This tool helps you detect and blacklist addresses that are likely to be used for spamming, including Delivery Status Notifications (DSNs).
A honeypot is a virtual trap set to lure attackers in order to better understand their behaviour and improve security policies. It can be in the form of a fake server that looks like a real one or something more subtle, such as a folder on a SharePoint site with sensitive data.
Detecting Potential Honeypots
A honeypot is a fake server that mimics real systems and services in your network to attract attackers. These traps help security teams gather data about attacker tools, tactics, and procedures without putting real systems at risk. The intelligence gathered from these traps can also be used to develop more effective defense mechanisms.
There are several different types of honeypots, including low-interaction honeypots, which mimic only the most basic simulated protocols and services to reduce attack surface area. These are great for gathering information about attackers, but they won’t provide any insight into more advanced threats or experienced hackers.
High-interaction honeypots are more complex and include real systems, databases, and user data. These are more difficult to set up, but they can provide a wealth of security data. These can be used to identify active compromise, fill in common detection gaps, and prevent lateral movement. They can also be used to test and train security teams.
Detecting Scam Tokens
The threat of rug pulls in crypto is a real danger for anyone investing. As such, detecting scam tokens is an important step in due diligence before investing. A honeypot checker provides a valuable tool that can help with this.
A scam token is a malicious smart contract designed to trap users’ investment. The scam works by triggering the contract’s increaseAllowance function, which resets users’ wallet balance to zero. As a result, victims lose their tokens and can’t sell or exchange them.
While many of these schemes are not as widespread as memecoin and shitcoin, they can be devastating for anyone who invests in them. By learning how to identify these traps, you can avoid becoming a victim of this type of cryptocurrency hack. For this, you need to understand how to identify the warning signs of a honeypot, including looking at the contract code. TokenSniffer is a great tool to use for this purpose.
Detecting Fraud Tokens
If you’re an onchain investor, a robust honeypot checker is essential to your security. It guards against the rug pulls that plague ETH and other EVM chains, protecting your investments from nefarious scams that steal your funds.
Our cutting-edge honeypot detection feature leverages a network of security infrastructure partners to constantly enhance its accuracy. Our team is able to identify additional red flags beyond the standard indicators, ensuring that your DeFi portfolio is protected from all kinds of risks.
These include elaborate traps hidden in the contract code that prevent speculators from selling their tokens after they have been purchased. This can be in the form of a high internal transfer commission or extreme limits on the sell order (both time and percentage based). These nefarious tricks can be difficult to spot, even for the most seasoned investors. Fortunately, our smart contract audit checks for these issues alongside the standard indicators of a honeypot. This helps you stay away from risky cryptos and maximize your investment potential.
Detecting Scam Contracts
One of the most common types of honeypot scams involve contracts. Scammers will create a contract that will allow investors to buy but block them from selling, thus leaving their investment locked and unable to be recouped.
This is a simple but effective way to ensnare unsuspecting crypto investors. In a rudimentary form, such contracts will have a function that adds users to a blacklist, which prevents them from selling their tokens.
A more sophisticated version of this type of scam involves manipulation of the user’s token balance. In this case, the scammers will alter the users’ token balance to an amount set by the contract developer.
To prevent falling into this trap, CoinScan’s bespoke algorithm includes multiple checks. These extra checks ensure that our honeypot checker will detect even the most insidious scam tactics. We are continually enhancing our feature with the support of security infrastructure partners, ensuring its accuracy is always on par with our user base.