Although developed as the latest generation of the internet, Web3 remains anything but secure, as a new industry insight reveals that users lost around $14billion to phishing websites last year.
Given their inherent security risks, blockchain-related scams from digital wallets are more common as Web3 applications continue to gain traction.
With large amounts of money being stored and flowing into cryptocurrency wallets, scammers issue false transactions and phishing websites that can set users back anywhere from hundreds, thousands, and even millions of dollars.
Like any new and unregulated technology, scammers deploy tactics to unlawfully extract value from users. In regards to the blockchain, that value is often derived from tokens held in a hot wallet; a form of cryptocurrency wallet that’s connected to the internet.
This connectivity ensures convenience but forfeits security, which makes them high-level targets for scammers.
To create a democratic financial future for the internet, newcomers and advanced users alike need to feel comfortable with their funds; an element that Web3 isn’t currently fully accommodating.
Delenium, a Web3 scam protection solution, is seeking to address this conflict by protecting the way Web3 users interact with decentralised applications.
Speaking on the rise of Web3 scams and how Delenium is seeking to mitigate their risks, Nadav Meiroviz, the solution’s co-founder, explains how it deploys “intricate scam detection techniques” in cooperation with its network of data sensors around the internet and its underlying blockchain layers.
When users accidentally land on scam websites, Delenium’s chrome extension works to block them and prevents them from connecting to wallets. The company describes its flagging mechanism as ‘unparalleled in its accuracy’.
In practicality, Meiroviz described the beta launch of the company’s chrome extension as “quite effective so far,” going on to reveal how the company will soon make “several major announcements” that will “change the security paradigm of Web3.”
Delenium reports that its sensors have flagged ‘tens of thousands’ of websites using a range of data. By deploying automatic sensors onto several distinct corners of the internet, the network acts as a first-line defence for users engaging with decentralised applications.