“Revoke” is always safe, right? Most crypto users believe that, especially since “revoke” is often considered a key part of Web3 wallet hygiene.

Crypto users believe they are safe when they revoke approvals, but scammers have discovered a way to exploit this feature. Fake approval scams deceive consumers into paying expensive gas prices, believing they are securing their wallets.

In their previous Web3 Wallet Security blogs, they discussed the hazards associated with approving smart contract transactions without thoroughly reviewing all of the facts. In this article, we’ll go over what fake approval frauds are and how you can prevent falling prey to their techniques.

What are fake approval scams?

Binance discusses how false approval frauds that use the word “revoke” fool customers into thinking they are reversing transaction rights granted to unfamiliar platforms or smart contracts. When customers try to do this, they find up paying excessive “gas fees,” all while thinking they’re protecting their money.

The Lure: While browsing their token approvals on a blockchain explorer like Etherscan or inside their wallet, the user spots an unfamiliar approval for a token they don’t recognize. It looks like some unknown contract has access to their valuable assets. Panic sets in, and the user instinctively rushes to revoke the approval, believing they’re protecting their crypto.

The “revoke” transaction the user triggers is real—it’s a legitimate action, but it’s designed to cost them an arm and a leg in fees. The scammer profits from these inflated transaction costs, often using them to mint new tokens or execute other malicious actions under their control. What the user thought was a protective move turned into an expensive mistake. The fake approval was merely bait to lure them into paying for nothing.

While these scams don’t directly steal funds, they exploit the user by draining their wallet through outrageously high gas fees, leaving the rest of their assets untouched.

How to Spot and Avoid These Scams

Stay calm

Scammers count on fear and urgency to push you into making a mistake. If something seems off, take a step back, breathe, and assess the situation before acting. A clear head is your best defense against falling into their trap.

Double-Check before you click

Before approving any transaction, take a moment to review the details. Does the amount look right? Do you recognize the contract address? Are there any odd warnings or unusual fees? If something feels off, cross-check with trusted sources, platforms or forums.

Know your fees

Familiarize yourself with the average size of gas fees on the chains you use. If a transaction fee looks suspiciously high or unusual, it could be a red flag. Use tools like Etherscan’s Gas Tracker, GasNow, or Blocknative’s Gas Estimator to monitor real-time gas prices and verify expected costs before proceeding.

Constantly educate yourself

Scammers are always refining their tactics, but knowledge is your strongest defense. The more you understand about emerging threats and security best practices, the better equipped you are to spot red flags before they become costly mistakes. Stay informed with Binance Academy, and dive into our security series for deeper insights of the latest frauds.

Scammers thrive on urgency, but a little vigilance goes a long way. The best defense against these deceptive tactics isn’t just knowing they exist, but staying one step ahead.

Remember, extra caution isn’t paranoia—it’s an additional layer of protection in the dynamic world of Fake approval scams