Scammers are Taking Advantage of Ethereum (ETH) Hard Fork to Steal From Users

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via smart

According to reports, the upcoming forks in the Ethereum (ETH) and Ethereum Classic (ETC) Blockchains have given scammers an opportunity to steal from users on the platforms above. Two “hard fork” versions are reportedly trying to steal funds from the users of both software.

Ethereum Nowa is allegedly forking away from the Ethereum (ETH) main chain. While Ethereum Classic Vision the second other fraudulent token is supposedly to fork away from the Ethereum Classic (ETC) network. These forks are said to be designed in response to the regularly scheduled network upgrades for the ETC and ETH Blockchains.

Ethereum Nowa And Ethereum Classic Vision Scams

Accordingly, Guarda an entity with a team of professionals who offer web-based solutions similar to Coinomi reportedly informed CCN to reveal that both of the forks mentioned above are scams. As per the warning sent to CCN Ethereum Nowa and Ethereum Classic Vision forks are scams. The scammers are attempting to capture user private keys. It is believed that a section of users may have lost money utilizing this model. CCN said:

When you are trying to access the Ethereum Nowa site, you can click the ‘Wallet’ icon which will redirect you to the wallet creation or importing your old wallet page which is exactly where the trap is .”

Firefox and MetaMask have reportedly caught the scams. Ethereum Nowa wallet was tagged as a deceptive platform by Firefox.

On the market before now, the Ethereum Classic Vision actually looked more solid initially, however further analysis of the code by the Guarda team indicates that the piece of code given sends your private key on the project’s servers, as an API token .”

Capturing Private Keys and Transfering Data

One popular web-based digital asset wallet solution, MyEtherWallet.com which requires a browser, and users do not have to be online to use it. Ethereum does not share user private key or transaction data with MyEtherWallet.com servers. Same applies to the MyMonero.com and Coinb.in platforms.

Guarda opened an investigation into the alleged prospective Ethereum (ETH) forks. Users are promised that under the framework they can fork their coins and get funds on the alleged new Blockchains. Guarda also discovered that both alleged crypto projects have been capturing user private keys and transferring data to their servers.

Unlikely for Legitimate Forks to Happen

There are a number of ways to fork coins. We do not really have any reason to believe that the mentioned chains will actually exist. But considering the fact that their track record of trying to capture user private keys, it’s highly unlikely that legitimate forks will occur following this development. Hence, CCN reported about the matter to warn users of the Ethereum Classic (ETC) and Ethereum (ETH) Blockchains to avoid such tokens and regard them as scams.

This report comes only days after the Ethereum Classic software was suffered a 51% attack. The network is still recovering from that incident. The report comes just before the Ethereum Blockchain long-anticipated upgrade known as Constantinople. The attackers took advantage of the situation with both coins to steal user private keys.