How to avoid fraud on Web3 apps
Tags: web3, decentralization, cryptocurrency
Published: 2024-05-31 10:32:57

When we hear about Web3, it often seems like a futuristic vision of the internet that could revolutionize our lives. This is not far from the truth, as its core concepts aim to decentralize and establish transparency in relationships between users, platforms, and developers.

In simple terms, Web3 is an upgraded version of the “traditional” internet that we are all used to. The main difference lies in the absence of a third party when using it. This means that no government agencies or large corporations are needed to securely use assets, entertainment, or educational resources.

This new phase of the internet offers more freedom, opportunities, and control over development in the digital world, but it also brings new challenges. First and foremost, security issues always require careful preparation and immediate solutions. The [recent news](https://x.com/ain_ukraine/status/1773424277099819374?s=12&t=_JmivvomNnbyX7bng8XykA) of the imprisonment of Sam Bankman-Fried, the [founder](https://www.forbes.com/profile/sam-bankman-fried/?sh=2ef1222a4449) of the bankrupt cryptocurrency exchange [FTX](https://www.investopedia.com/ftx-exchange-5200842), shook the community. He was sentenced to 25 years in prison for stealing $8 billion from clients. According to [[REUTERS](https://www.reuters.com/technology/sam-bankman-fried-be-sentenced-multi-billion-dollar-ftx-fraud-2024-03-28/#:~:text=NEW%20YORK%2C%20March%2028%20(Reuters,former%20billionaire%20wunderkind's%20dramatic%20downfall.), the 32-year-old billionaire was found guilty after a lengthy trial on 7 counts of the Criminal Code for conspiracy and fraud that occurred after the collapse of FTX in 2022. Prosecutors in the case confirmed that it was one of the largest frauds in US history.

This shows that when it comes to assets, education, entertainment, or health, everyone needs to be able to protect themselves from scammers, especially during the smooth transition and adaptation to the Web3 system and its applications. There are special precautions called SLAM (Source of information, Links, Accounts, Activities, Approvals, Authentications, Mind) that can help to avoid phishing and potential attacks.

**S — (source of information)**. Always be aware that if you receive an email or message on Telegram or Discord from an unknown or unfamiliar sender, you should pause and check before responding. Basic cybersecurity knowledge and practices can help with this.

**L — (Links)**. The same applies to links. It is not recommended to immediately go to any website, even if it looks like the official one. This is especially true for the user experience on many popular cryptocurrency exchanges, which guarantee a high level of security, such as [Bitfinex](https://www.bitfinex.com/), [WhiteBIT](https://whitebit.com/ua), or [Gate.io](https://whitebit.com/ua), when using cold or hot wallets. After all, this is a fairly young and promising area that is a direct “ally” of the Web3 phase.

**A — (Accounts, Activities, Approvals, Authentications).** In this case, it is worth monitoring your own activity in accounts and authentication. This is especially important when working with DApps (decentralized applications), where wallet approval is required. This is because hacker platforms can be very similar to well-known ones like [1Inch](https://1inch.io/) or [Uniswap](https://uniswap.org/), but they may request excessive access. Regular checking of your e-wallet should be a habit for everyone who actively participates in investing, trading, or buying cryptocurrency. It is also recommended to review DApp permissions and periodically grant and revoke them. This will reduce the risk of potential attacks on the wallet that may occur due to enabled, unreliable or dormant programs.

**M — (Mind).** Use strong passwords. This means that instead of creating the easiest ones with your date of birth, use strong and complex combinations to create accounts on platforms. The same applies to personal wallet keys, which should never be given to anyone, as this will mean that access will be lost in the future.

**Conclusion**

Web3 promises a new era of the internet, free from centralized control. However, this freedom comes with security challenges. The recent FTX scandal highlights the importance of user vigilance against scams during the transition to Web3. SLAM (Source, Links, Accounts, Mind) offers a framework to stay safe. Be wary of unknown senders, don’t click suspicious links, and monitor your wallet activity on DApps. Strong passwords and keeping your private keys secure are crucial as well.