Be careful not to fall victim to fake tokens for fear of missing out!

According to the blockchain security company Blockfence, a group of digital currency fraudsters have managed to make more than $32 million out of more than 42,000 since April 2023 with a new method that even some rug-pull trackers are unable to detect. get a victim
As with many digital currency scams, fraudsters use the feeling of FOMO (fear of missing out) to deceive investors and attract funds by forging the tokens of projects that were about to be launched.
According to Pablo Sabatella, Head of Security Research at Blockfence, the method of these fraudsters was a little different. By forging the maximum token balance through minting and burning and using bait-and-switch tactics, they have tricked victims.
Fraudsters reportedly start the process by sending around 10-20 Ethereum to an account and then use those funds to create fake tokens. As with many Ragpool scams, fake liquidity is injected into the scam project, creating the illusion of legitimate volume in the liquidity pools (LP) of decentralized exchanges. The fraudster then implements a lock function on the pool's tokens to create the illusion that investors will not be ragpolled.

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Beginning

Then, when the price of the fake token is artificially inflated through washtrading, the fraudster calls the setUserBalance function. This function brings the balance of the victim to “1 token” and makes it impossible to sell the token; Because the scammer technically burned them. However, the token is still visible in the victim's wallet, further misleading them.
Sabatella explained:

Eventually, the fraudster removes the liquidity from the pool and the token's value drops to almost zero.

Interestingly, scammers sometimes return 5-20 ETH to victims in order to avoid attracting attention. Also, this scam method involves registering owner and builder disclaimer of ownership, which can bypass some tracker sites.
Blockfence has identified 1,300 separate ragpoles with the same pattern.
According to a report by blockchain security platform Immunefi, an estimated $103 million will be lost in 2023 through detectable scams, such as Ragpool.