Scanning the Wrong QR Code Could Drain Your Wallet, Blockchain Analysis Firm Bitrace Warns

Bitrace is warning of a new type of crypto scam “where theft is carried out through a payment QR code transfer test, essentially deceiving users into authorizing wallets.”

A new crypto scam is targeting users with a payment QR code transfer test, deceiving them into authorizing their wallets and draining their funds, blockchain analysis firm Bitrace has warned.

The scam unfolds in a specific sequence, according to Bitrace. The scammer initiates the interaction by proposing to swap tokens over-the-counter — via a wallet-to-wallet transfer instead of an exchange — offering an exchange rate that beats the market.

They also propose a fee for the transaction, denominated in Tron’s TRX token, in exchange for long-term cooperation. To gain the user’s trust, they even make a small payment of Tether (USDT).

After the initial interaction, the scammer asks the user to participate in a “small repayment test,” which involves returning the USDT by scanning a QR code. However, the QR code leads to a third-party website that prompts the user to confirm the “test” transaction, and clicking “confirm” steals the user’s wallet authorization, according to Bitrace.

At least 27 wallet holders appear to have fallen victim to the scam, collectively losing around $120,000 in USDT, according to Bitrace. The attacks occurred between July 11 and July 17, and the scammer used the same wallet in each instance.

The funds were then moved through five intermediary addresses and into three accounts with Cambodian crypto exchange Huione for laundering, according to Bittrace.

Cyberattacks have been on the rise in 2024. According to cybersecurity firm Cyvers, the total volume of stolen crypto funds this year is approaching $1.4 billion.

Access control breaches — often phishing attacks — accounted for the vast majority of stolen funds, with around $490 million pilfered in the second quarter alone.

“A risk check on the counterparty’s address before the transaction is crucial,” Bitrace said, adding that the company is developing a “one-click risk check tool to help users identify potential risks associated with target addresses.”