It seems that the upcoming hard forks in both Ethereum (ETH) and Ethereum Classic (ETC), allow scammers to steal users funds. It seems that there are a few sites that promote new networks on Ethereum and Ethereum Classic. In the coming days, both ETH and ETC are going to experience a network upgrade that includes a hard fork.
According to a recent report published at CCN, there are two fake hard forks called Ethereum Nowa and Ethereum Classic Vision that aim at stealing users’ funds. Ethereum Nowa claims to be an Ethereum hard fork while Ethereum Classic Vision claims to be forking from Ethereum Classic.
The way these scammers work is very simple. They both ask users to provide them with their private keys. Those users that are not aware could certainly lose their funds if they give their private keys. Both Firefox and MetaMask were able to detect these fraudulent sites.
According to the company that investigated these fake sites, Guarda, users are promised that they will be able to receive their coins and new coins from the allegedly new chains. However, these crypto projects showed that they are simply stealing users’ private keys and not giving anything away.
Guarda commented on this issue:
“When accessing the Ethereum Nowa website, the users can click on the Wallet button – this will redirect you to the page of Ethereum Nowa wallet creation/importing your old wallet. This is exactly where the trap lies.”
Guarda explains that the Ethereum Classic Vision page looked more solid. However, once they’ve analyzed the page, the piece of code provided sneds your private key data to the Ethereum Classic Vision servers and masks it as an API token.
The upcoming Ethereum hard fork is going to prepare the network to move towards a Proof-of-Stake (PoS) consensus algorithm. Ethereum miners will now receive 2 ETH rather than 3 ETH every time they find a block.
Ethereum Classic has experienced a 51% attack a few days ago. There were a group of miners that controlled more than 51% of the hash rate of the network and were able to perform double-spend attacks.