Security Special Issue 01 | OKX Web3 & SlowMist: Lessons from "Hundreds of Scams"

One day, if someone suddenly gives you a private key to a wallet address worth $1 million, would you immediately transfer the money out? If your answer is yes, then this article is tailored for you.

This is the 01st issue of OKX Web3's Security Special Issue, featuring insights from SlowMist, a renowned security team with extensive experience in combating crypto scams, alongside OKX Web3's security team. Together, they share real-world cases and practical advice—packed with valuable takeaways!

SlowMist Security Team: Thank you for the invitation from OKX Web3. As a leading blockchain security firm, SlowMist specializes in security audits, anti-money laundering tracking, and threat intelligence collaboration. In 2023, we assisted clients in freezing over $12.5 million in stolen funds. We remain committed to contributing meaningful insights to the industry.

OKX Web3 Security Team: Hello everyone! We’re thrilled to share our expertise. Our team focuses on safeguarding OKX Web3 Wallet through product security, user protection, and 24/7 transaction monitoring, while actively supporting the broader blockchain security ecosystem.

Q1: Can You Share Real-World Theft Cases?

SlowMist Security Team:

1. Cloud Storage Risks: Many users store private keys or seed phrases on platforms like Google Docs, Tencent Docs, or cloud drives. If these accounts are hacked via "credential stuffing," assets are easily stolen.
2. Fake Apps: Fraudsters lure users into downloading malicious wallets. For instance, in a multi-signature scam, attackers modify wallet permissions to co-control funds, waiting to drain accumulated assets later.

OKX Web3 Security Team:

• Case 1: A user downloaded a trojan disguised as a data platform via Google Search, leading to asset theft. Always verify links and use firewalls/virus scanners.
• Case 2: A user interacted with a fake DeFi "customer support" on Twitter, entering their seed phrase on a phishing site. We’ve since flagged this malicious domain.

👉 Protect your assets with OKX Web3 Wallet

Q2: Best Practices for Private Key Storage & Alternatives

SlowMist Security Team:

• MPC (Multi-Party Computation): Splits private keys into fragments managed by multiple parties, eliminating single-point failure.
• Keyless Wallets: Eliminate seed phrases by using technologies like social recovery or zero-knowledge proofs.

OKX Web3 Security Team:

• Recommended Methods: Hardware wallets, handwritten backups, multi-signature setups, and fragmented seed storage.
• Upcoming Features: Dual-factor encryption and secure clipboard management to thwart malware.

Q3: Common Phishing Tactics Today

SlowMist Security Team:

1. Wallet Drainers: Malware like Pink Drainer and Angel Drainer hijack transactions via fake sites.
2. Blind-Signing Scams: Users unknowingly approve malicious permits (e.g., eth_sign or create2 addresses).

OKX Web3 Security Team:

• Fake Airdrops: Hackers send counterfeit tokens to mimic legitimate transactions.
• Signature Tricks: Attackers exploit approve functions or protocol design flaws (e.g., EigenLayer’s queueWithdrawal).

Q4: Hot vs. Cold Wallet Vulnerabilities

OKX Web3 Security Team:

• Hot Wallets: Prone to online threats like phishing.
• Cold Wallets: Risk offline social engineering or physical theft.

Q5: Unconventional Phishing Traps

SlowMist Security Team:

• "Free" Private Keys: Scammers leak high-value keys, then drain any deposited ETH.
• Complacency: Users underestimate their attackability—every detail (emails, passwords) is valuable to hackers.

OKX Web3 Security Team:

• Psychological Traps: Greed overrides caution. Remember: "No free lunch" in blockchain’s dark forest.

👉 Explore secure wallet solutions

Q6: Key Security Recommendations

SlowMist Security Team:

1. Understand What You Sign: Reject blind signatures.
2. Diversify Assets: Use hierarchical wallets (e.g., small funds for airdrops, cold storage for large sums).
3. Education: Study resources like Encryption Asset Security Solutions and Blockchain Dark Forest Self-Help Guide.

OKX Web3 Security Team:

1. Verify DApps: Research before interacting.
2. Inspect Transactions: Use pre-execution features to preview outcomes.
3. Download Safely: Only use official sources; scan files.
4. Secure Storage: Never screenshot or cloud-store keys.
5. Multi-Sig & Strong Passwords: Add layers of protection.

FAQ Section

Q: How can I spot a phishing site?
A: Check URLs carefully, look for HTTPS, and avoid unsolicited links.

Q: What’s the safest way to store seed phrases?
A: Handwrite and split them into multiple secure locations.

Q: Are hardware wallets foolproof?
A: They’re highly secure but can still be compromised via physical theft or social engineering.

Q: Can revoked token approvals recover stolen funds?
A: No—revoking approvals only prevents further theft.

Q: How often should I audit my wallet permissions?
A: Monthly, or after interacting with new DApps.

Q: What’s the biggest red flag in crypto scams?
A: Urgency ("Act now!") and requests for private keys.

Disclaimer: Always conduct due diligence in crypto investments. Report suspicious content via official channels.