WEEX Security Alert — Malicious Approval Scam

What is a Malicious Approval Scam?

Malicious approval scams are among the most widespread and damaging threats in the Web3 space, impacting countless users.

In Web3, when you interact with a smart contract, you are often required to grant permissions by signing a transaction. Common examples include:

• Approving a dApp to access your tokens.
• Granting a contract permission to transfer your NFTs.
• Performing seemingly harmless actions like logging in or verifying ownership

Malicious approval scams exploit these actions by tricking users into granting harmful contracts permission to transfer their assets.

Key Features

1. Trick Users into Granting Dangerous Permissions Scammers impersonate legitimate dApps, airdrops, or NFT projects. They lure users into clicking an “Approve” button, which actually authorizes malicious actions like token or NFT access.
2. Assets Are Drained Without a Transfer You didn’t send anything—you only clicked “Confirm.” But once approval is granted, attackers can transfer your assets at any time without further action from you.
3. Approvals Are Often Unlimited Most malicious contracts request the maximum possible allowance, giving them permanent and unrestricted access to your tokens or NFTs.
4. The Contract Is Passive Scam contracts don’t actively steal funds. They rely entirely on users willingly signing approvals, which helps them evade conventional security warnings.
5. Misleading Signature Prompts Wallet approval prompts are often overly technical or oversimplified, making it difficult to understand what you’re signing. Many users assume it’s a harmless authorization and confirm without realizing the risk.

Common Scenarios

1. Fake Airdrop or NFT Minting Pages Sites promote “limited airdrops” or “free mints.” Clicking the button triggers a request to approve token or NFT access. Once approved, scammers can drain your assets anytime.
2. Fake DEX or Swap Platforms You connect your wallet to a fake decentralized exchange to swap tokens. Instead of executing a trade, the site tricks you into approving token access. Your funds are then stolen.
3. Fake Staking or Game Platforms You are prompted to “stake tokens” or “start playing” on a deceptive DeFi or GameFi platform. The site requests approval for your tokens or NFTs—but the entire platform is fake.
4. Hacked Frontends of Legitimate Projects Attackers compromise trusted websites or hijack DNS records to replace legitimate contracts with malicious ones. Users believe they’re using a real dApp but are actually approving harmful permissions.
5. Fake Customer Support or Documentation A fake support agent sends a link claiming to “resolve an issue.” The page asks you to approve a contract, which is actually designed to steal your assets.

How It Works

The core idea behind malicious approvals is simple:

It exploits users’ lack of awareness about on-chain permissions. By misleading you into granting approvals, scammers gain control of your assets and steal them without your knowledge.

Technical Process

A typical malicious approval scam follows these steps:

1. Scammer deploys a malicious contract (which does not initiate transfers itself).
2. The user is tricked into calling approval (for tokens).
3. Approval is granted—assets remain in the wallet temporarily.
4. Scammers use functions to move funds into their wallet.
5. Since the transaction is user-approved, it is considered valid and is not blocked.

Best Practices to Protect Yourself

Watch for these red flags to avoid malicious approvals:

• The dApp has no real functionality—it, it only prompts for approval.
• It requests access to high-value assets like ETH, stablecoins, or NFTs.
• The approval has no spending limit.
• The signature popup shows high-risk actions.
• The website appears unprofessional or mimics a known project.
• Avoid clicking random links or approving requests from unverified sources like Telegram DMs or Twitter replies.

Conclusion

If you don’t understand it, don’t sign it. If it’s not a trade, think twice before approving.

For everyday users, approving smart contract permissions should be done with extreme caution. Adopt a security-first mindset: treat every approval as potentially transferring funds. Always scrutinize and double-check every authorization before signing.

Further Reading

• WEEX Security Alert — High-risk Tokens
• WEEX Security Alert – SMS Spoofing
• WEEX Security Alert — Social Media And Online Forums
• WEEX Security Alert — Common Cryptocurrency Scams