Honeypot: what cybersecurity and fraud have in common
A honeypot is a mechanism that is used by both cybersecurity experts and crypto scammers alike.
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There are two types of people in cybersecurity – those who set traps to protect computer systems from hacks and those who set traps to exploit the greed and naivety of users.
Honeypot for cybersecurity
Honeypot is a trap program used by cybersecurity specialists to distract attackers from real targets and to learn more about their behavior. It works by masquerading as a file, software, server, or other element with an enticing security flaw. The program collects data on the attacker and uses this information to improve protection against future attacks.
For a honeypot to be effective, it must look and behave exactly like the real object it is imitating. If it doesn't, the attacker may be able to outsmart the cybersecurity specialists by deliberately misleading them with their actions. The success of the honeypot depends on its ability to fool the attacker.
In the world of blockchain, the honeypot strategy is often used to lure attackers into targeting “vulnerable” smart contracts or nodes.
This distracts them from less noticeable flaws in the network structure that can pose a real threat to the blockchain or decentralized app. When an attacker falls into the trap, the program tracks their actions and blocks any malicious activity. This honeypot strategy protects the blockchain from harm, detects attackers, and traces their tactics.
How do crypto scammers use honeypot techniques?
However, some scammers in the crypto world act in a different way. Instead of looking for vulnerable smart contracts, they create them themselves and lure cryptocurrency holders who are looking for quick and easy profits.
Crypto scammers use smart contracts that have an obvious vulnerability, which allows them to make a significant profit. However, there's a catch: the victim must pay a percentage for such a “gift” out of their own pocket. When the victim pays, the user's funds are automatically transferred to the scammer's wallet.
In essence, the person is lured in by the possibility of making a profit and fails to notice the several layers of complexity involved in the scheme.
Honeypot for greedy users
Let’s consider an example of one of the simplest and most common traps of this kind.
A person appears on a forum or social network pretending to be naive. They do not know how to transfer tokens, say SHIB worth $6,000, to an exchange from their crypto wallet and ask for help from other users for a small reward. And so, they publicly share their private key. People who fail to notice the trick fall prey to the “naive” person's gullibility and decide to transfer funds to their address.
However, they quickly discover that a transaction fee must be paid in ETH. The scammers deliberately choose the Ethereum-based tokens to increase the commission. Without much thought, the victim transfers small amounts to the scammer's wallet to withdraw a more substantial sum. But the funds do not appear there; they immediately leak through a special smart contract into the pocket of the person who launched the scheme. In other words, there is no way for the victim to withdraw the hypothetical $6,000.
Thus, in their attempt to get their hands on someone else's savings, the person ultimately falls into the trap and ends up paying the price for their own greed.
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