Coinbasea US-based crypto exchange, has become the latest crypto wallet provider to introduce transaction previews and blocklists following the increase in thefts in the sector.
On Jan. 30, the crypto exchange announced that it had integrated a new suite of security features into its wallet app to make it easier for users to spot and take action on potential thefts by fraudsters.
Such integrations include a transaction preview function, which gives the user an estimate of how “token and NFT balances will change” during a transaction, before the confirmation button is pressed.
The firm has also introduced token approval noticeswhich clearly show the user when a dApp, a decentralized application, requests approval for token withdrawals and non-fungible tokens (NFTs).
Also, the company introduced new levels of permission management which allow users to revoke connections to DApps directly from the app, so as to minimize “exposure to potential vulnerabilities”.
The exchange joins the strong lineup of crypto wallet providers that have launched or announced similar features aimed at fighting scams and phishing attacks, including Phantombased on Solana, Ember, Web3 wallet provider, e Bitski.
Just two days after Moonbirds creator Kevin Rose admitted he lost $1.1 million in NFTs through a targeted phishing attack, Phantom reminded users on Jan. 27 that his wallets are protected by a series of of security features that include transaction preview, an open-source blocklist, NFT spam reporting and burning.
The company explained the transaction preview feature: “When you take an action in Phantom, like minting an NFT, we scan the transaction and proactively find anything that looks suspicious.” Does a website look suspicious? You receive an alert. Trying to obfuscate the code? I notify. Interaction with suspicious tokens? Caution”.
The open-source blocklist consists of a “community-updated list of malicious domains” which Phantom blocks users from logging in by mistake.
12/ We are proud of the security features we have implemented, but this is just the beginning.
We will continue to work tirelessly to protect our users with the best security features, education and support to make everyone’s journey through web3 safe, easy and enjoyable.
Phantom (@phantom) January 26, 2023
12/ We’re proud of the security features we have implemented, but this is only the beginning.
We will continue to work tirelessly to protect our users with best-in-class security features, education, and support to make everyone’s journey through web3 safe, easy, and fun.
Phantom (@phantom) January 26, 2023
On Twitter, the same day as Phantom, the Web3 wallet provider Ember detailed the list of their security tools.
The list includes transaction previews, blocking of tokens and NFTs to prevent assets from being withdrawn in malicious transactions, and revocation of approval.
5/7) Additionally, Ember allows you to lock your NFTs and tokens, disabling the ability to send or sell them until they have been unlocked, which requires your authentication to do so.
This means that if you sign a malicious transaction, the locked assets cannot be withdrawn.
— Ember (@EmberWallet) January 27, 2023
5/7) As well, Ember allows you to lock your NFTs and tokens, which disables the ability to send or sell them until they have been unlocked which requires your authentication to do so
This means that if you do sign a malicious transaction, your locked assets can’t be drained
— Ember (@EmberWallet) January 27, 2023
On January 24, too Bitski announced that it is working on similar integrations for its wallet 2.0, with product designer Jasmine Xu who he has declared that these will affect “Self-custody, browser for dapps, transaction previews, account activity notifications, an in-app vault for burns, and more in a few weeks.”
Related: SlowMist: 5 sneaky tricks used by crypto phishing scammers in 2022
Coinbase, in its latest post, stated that in the coming weeks, the company will roll out a feature that will allow users to “view and revoke existing token balances”.
This type of feature is important for cryptocurrency and NFT usersas scammers/hackers use a variety of tools to hijack transactions and get you to send your funds.
Among the most popular methods to fool even the most experienced users are phishing attacks, airdrop scams that push people to click on malicious links and malware.
