How Scammers Manipulate Smart Contracts To Steal Cryptocurrencies

[honeyman1]

HI Guys   

The honeyman1 team welcomes you . We specialize in it-crypto, our services include: development of crypto projects and all kinds of custom smart contracts
 

What are smart contracts on the blockchain?

 

Smart contracts are a kind of algorithm for certain actions integrated into the blockchain code. When the established agreements spelled out in it are followed, a sequence of actions is automatically triggered.

 

For example, let's take the simplest transaction - the process of buying and selling cryptocurrency between users. This transaction is anonymous and is not regulated by the intermediary organizations that control it. This model is made possible by smart contracts, which prescribe a detailed algorithm for the transaction between two users. This eliminates the possibility of fraud on both sides and allows the transaction to follow a certain algorithm of sequential actions.

 

Why are smart contracts important?

 

Smart contracts allow developers to create a wide range of decentralized applications and tokens. They are found all over the world, from new financial tools to logistics to gaming experiences, and are in approximation the same as any other crypto transaction. Once a smart contract application has been added to the protocol, it usually cannot be undone or changed (although there are exceptions).

 

How fraud works with smart contracts?

 

In a smart contract, you can prescribe any features and conditions that are actively used by fraudsters, such as

• HONEYPOT - in simple words, it is a token with a smart contract that does not allow you to sell the token itself, simply put, it takes your invested money

The steps of the scammers:

 

1. Using rogue services. First, hackers use rogue services to create a contract, or they copy an already known rogue smart contract and change the name and symbol of the token, as well as some feature names.

    

2. Feature management. Then they work with the money transfer functions, not allowing you to sell, increasing the commission, and so on. Most of the manipulation is related to money transfer.

3. Connecting social networks. Attackers use Twitter, Discord, Telegram and promote their project through fake accounts so that people start buying currency.

    

4. Theft. This is the essence of the rugpull method. Once they have collected the right amount of money, they withdraw all the money from the contract and delete all social media accounts.

5. The introduction of time locks - timelocks. These tokens then lock a certain amount of money in the contract pool or even add a time lock to the contract. Timelocks are mostly used to delay administrative actions and are considered a reliable indicator that a project is legitimate.

Let's now look at an example :monkaomega: 

 People come to us to buy a smart contract or project (let's take the most popular token contract as an example). After the purchase they do social media, websites, design, etc. (or they ask us again), and when it's done, they just buy ads and swipe money from everyone. Our last client took about $100,000

[FREDKO]

I take it you are a pro at smart contracts

Is it difficult to write them?

[honeyman1]

I take it you are a pro at smart contracts

Is it difficult to write them?

it all depends on the purpose of the smart contract. We can do some in an hour and some in a week or more

 

[FREDKO]

it all depends on the purpose of the smart contract. We can do some in an hour and some in a week or more

 

It must be very expensive

[honeyman1]

It must be very expensive

Again, it all depends on the purpose of the contract and in our channel everyone will find what he needs and inexpensive 

[honeyman1]

Yes, that is correct. Smart contracts are self-executing programs that run on a blockchain network. They are designed to facilitate, verify, and enforce the negotiation and performance of contracts between parties, without the need for intermediaries such as lawyers, banks, or notaries. Smart contracts contain code that specifies the rules and conditions of the agreement, as well as the actions that need to be taken when those conditions are met. When the conditions are met, the smart contract automatically executes the specified actions.

Exactly!

[honeyman1]

This is a bump

[honeyman1]

Contract updated - Honeypot Pro Edition V2

Now available on ERC20 network

You can also choose BEP20 or ERC20 version

[honeyman1]

Contract updated - Honeypot Pro Edition V2

Now available on ERC20 network

You can also choose BEP20 or ERC20 version

[honeyman1]

This is a bump