The Federal Bureau of Investigation (FBI) have recently cautioned consumers of a new type of scam, where fake “play-to-earn” games are being used to steal cryptocurrency, as reported by Techcrunch.
The scam involves the criminals contacting the victims and telling them about a new game which they must download, install a cryptocurrency wallet and buy the cryptocurrency, then join the specific game app. The players will then see the false rewards accumulating in the game based on the money stored in the wallet. However, after the players stop depositing money into the wallet, the malicious program which was unknowingly installed with the game, is used to drain the accumulated money.
In some cases, the criminals then contact the victims and ask them to pay a tax or fee for reclaiming their money, a ploy to extort further money from them.
How to stay safe online
Even though the play-to-earn business model is legitimate and there are a multitude of titles which allow players to gain cryptocurrency through play, the relative difficulty in accessing blockchain technology makes it a prime target for exploitation by criminals.
The PSA doesn’t name any particular games which are being used in the scam, but it does offer some tips to help consumers protect themselves. The FBI advises that people who are participating in cryptocurrency-based gaming should create a unique wallet, thus isolating their main cryptocurrency holdings in case of a scam. Players can also use a third-party blockchain explorer to check the balances of the addresses in their gaming wallets, and use a third party token allowance checker to make sure no sites or apps have been unintentionally given permission to access their funds.
We have an updated list of blockchain games available on mobile devices, and earlier this month, Social First CEO Kim Soares wrote a guest article discussing the potential of player-driven economies.
