Blockchain Networks Facing Rising Threats from Scammers and Vulnerabilities

A recent report by Trugard Labs has uncovered critical issues affecting various blockchain networks, especially in rapidly growing chains like BASE, Coinbase’s Layer 2 solution. The findings from the Xcalibur source code detection suite in September shed light on the prevalent scams targeting users on BASE, Ethereum, BSC, and Polygon networks.

Rise of Scams on BASE and Other Networks

The surge in politically themed meme coin scams, vulnerabilities across multiple chains, and BASE’s allure to scammers indicate a concerning trend in decentralized finance (DeFi) ecosystems.

BASE: A Magnet for Scammers

BASE’s appeal due to its low fees, scalability, and endorsement by Coinbase has attracted both legitimate users and malicious actors. Similar to Binance Smart Chain’s early days, BASE’s rapid expansion has made it a prime target for scams, thanks to its user-friendly and cost-effective environment.

Trugard’s report highlights scammers exploiting BASE’s low fees and uncomplicated token setup to execute frequent, low-cost attacks. These fraudulent activities range from traditional “rug pulls” to politically themed meme coins, which are currently exploiting investor interest during election periods.

Major Vulnerabilities Detected by Trugard’s Xcalibur Suite

Trugard Labs identified five high-severity vulnerabilities plaguing multiple blockchain networks. The vulnerabilities include unauthorized minting, hidden balance adjustments, unauthorized balance updates, and unapproved token burns, posing significant risks to token holders across BSC, BASE, and Ethereum.

Political Meme Coin Scams

September 2024 witnessed a series of politically themed meme coin scams such as “Trump Vs Harris” and “Trump2024,” designed to capitalize on political sentiments for quick profits while leaving investors with worthless tokens. Trugard Labs flagged these tokens for hidden balance updates, reentrancy risks, and faulty transfer functions, cautioning investors against falling prey to these scams.

BASE, mirroring Binance Smart Chain’s early trajectory, now faces an influx of cloned projects and meme coins, attracting cybercriminals seeking to deceive investors by imitating successful projects. Trugard’s report underscores the importance of early warning systems like Xcalibur suite to mitigate the risks posed by malicious contracts.

In light of the escalating scams on BASE and other networks, users are advised to exercise vigilance and discernment to safeguard against fraudulent schemes promising quick returns. The findings underscore the imperative for the blockchain community to prioritize security measures alongside the dynamic growth of DeFi.