Security Special Issue: OKX Web3 & WTF Academy, one moment working hard to farm, the next moment being hacked and "robbed"?

Author: OKX Web3

Introduction

The OKX Web3 wallet has specially curated the "Security Special Edition" column to address various types of on-chain security issues. Through the most authentic cases that occur around users, in collaboration with experts or institutions in the security field, we provide dual sharing and answers from different perspectives, thereby systematically sorting and summarizing security trading rules. The aim is to enhance user security education while helping users learn to protect their private keys and wallet assets.

Making profits as fierce as a tiger, but with a security factor of negative 5?

As a high-frequency user of on-chain interactions, security is always the top priority for profit seekers.

Today, two major "pitfall avoiders" in the on-chain space will teach you how to implement security protection strategies.

This issue is the third edition of the security special, featuring industry-renowned security expert 0xAA and the OKX Web3 wallet security team, who will explain the common security risks and preventive measures faced by "profit seekers" from a practical guide perspective.

WTF Academy: Thank you very much for the invitation from OKX Web3. I am 0xAA from WTF Academy. WTF Academy is an open-source university for Web3, helping developers get started with Web3 development. This year, we have incubated a Web3 rescue project called RescuETH (on-chain rescue team), focusing on rescuing the remaining assets in users' stolen wallets. We have successfully rescued over 3 million RMB in stolen assets on Ethereum, Solana, and Cosmos.

OKX Web3 Wallet Security Team: Hello everyone, we are very happy to share today. The OKX Web3 wallet security team is mainly responsible for building various security capabilities in the Web3 field, such as wallet security capability construction, smart contract security auditing, and on-chain project security monitoring, providing users with multiple protection services for product security, fund security, and transaction security, contributing to the maintenance of the entire blockchain security ecosystem.

Q1: Please share some real risk cases faced by profit seekers.

WTF Academy: Private key leakage is one of the major security risks faced by profit seekers. Essentially, a private key is a string of characters used to control crypto assets. Anyone who has the private key can fully control the corresponding crypto assets. Once the private key is leaked, attackers can access, transfer, and manage users' assets without authorization, leading to economic losses for users. Therefore, I will focus on sharing several cases of private key theft.

Alice (pseudonym) was lured by hackers on social media to download malicious software, which resulted in her private key being stolen after running the software. Currently, the forms of malicious software are diverse, including but not limited to: mining scripts, games, conference software, dog coin scripts, and bot scripts, etc. Users need to raise their security awareness.

Bob (pseudonym) accidentally uploaded his private key to GitHub, which was then obtained by others, leading to asset theft.

Carl (pseudonym) consulted a question in the official Telegram group of a project and trusted a fake customer service that contacted him, leaking his mnemonic phrase, after which his wallet assets were stolen.

OKX Web3 Wallet Security Team: There are many such risk cases, and we have selected a few classic cases that users encountered while seeking profits.

The first type involves fake airdrop announcements from impersonated accounts. User A discovered an announcement about an airdrop activity under the latest Twitter post of a popular project while browsing Twitter, and clicked the link to participate in the airdrop, ultimately leading to phishing. Currently, many phishers use high-fidelity official accounts to post fake announcements under official tweets to lure users. Users should be cautious and not let their guard down.

The second type involves official accounts being hijacked. The official Twitter and Discord accounts of a certain project were hacked, and the hacker then posted a fake airdrop activity link on the project's official account. Since the link was published through official channels, user B did not doubt its authenticity and clicked the link to participate in the airdrop, only to be phished.

The third type involves malicious project parties. User C participated in a mining activity of a certain project and, in order to obtain higher rewards, invested all his USDT assets into the project's staking contract. However, the smart contract had not undergone rigorous auditing and was not open-source, resulting in the project party stealing all the assets deposited by user C through a backdoor reserved in the contract.

For profit seekers, who often have dozens or hundreds of wallets, how to protect wallet and asset security is a very important topic that requires constant vigilance and heightened security awareness.

Q2: As high-frequency users, what are the common types of security risks and protective measures for profit seekers in on-chain interactions?

WTF Academy: For profit seekers and all Web3 users, the two common types of security risks currently are: phishing attacks and private key leakage.

The first type is phishing attacks: Hackers often impersonate official websites or applications, luring users to click on links on social media and search engines, and then inducing users to trade or sign on phishing websites, thereby obtaining token authorizations and stealing user assets.

Preventive measures: First, it is recommended that users only access official websites and applications through official channels (e.g., links in the official Twitter bio). Second, users can use security plugins to automatically block some phishing websites. Third, when entering suspicious websites, users can consult professional security personnel to help determine whether it is a phishing site.

The second type is private key leakage: This has been introduced in the previous question and will not be elaborated on here.

Preventive measures: First, if users have wallets installed on their computers or phones, they should avoid downloading suspicious software from unofficial channels. Second, users need to know that official customer service will not proactively message you, nor will they ask you to send or input your private key and mnemonic phrase on fake websites. Third, if users' open-source projects require the use of private keys, they should configure a .gitignore file to ensure that private keys are not uploaded to GitHub.

OKX Web3 Wallet Security Team: We have summarized five common types of security risks that users face in on-chain interactions and listed some protective measures for each type of risk.

1. Airdrop scams

Risk overview: Some users often find a large number of unknown tokens appearing in their wallet addresses. These tokens usually fail in common DEX transactions, and the page prompts users to go to its official website for redemption. When users authorize transactions, they often grant the smart contract permission to transfer assets from their accounts, ultimately leading to asset theft. For example, the Zape airdrop scam, where many users suddenly received a large number of Zape coins in their wallets, seemingly worth hundreds of thousands of dollars. This led many to mistakenly believe they had unexpectedly struck it rich. However, this is actually a carefully designed trap. Since these tokens cannot be queried on legitimate platforms, many eager users will find the so-called "official website" based on the token name. After connecting their wallets as instructed, they believe they can sell these tokens, but once authorized, all assets in their wallets will be immediately stolen.

Preventive measures: To avoid airdrop scams, users need to remain highly vigilant, verify the source of information, and always obtain airdrop information from official channels (such as the project's official website, official social media accounts, and official announcements). Protect private keys and mnemonic phrases, do not pay any fees, and use community and tools to verify and identify potential scams.

2. Malicious smart contracts

Risk overview: Many unaudited or unverified smart contracts may contain vulnerabilities or backdoors, which cannot guarantee the safety of user funds.

Preventive measures: Users should interact only with smart contracts that have been rigorously audited by reputable auditing firms or check the project's security audit reports. Additionally, projects that have bug bounty programs generally have better security.

3. Authorization management:

Risk overview: Over-authorizing interacting contracts may lead to fund theft. Here are some examples: 1) If the contract is an upgradeable contract and the privileged account's private key is leaked, attackers can use that private key to upgrade the contract to a malicious version, thereby stealing the assets of authorized users. 2) If the contract has vulnerabilities that have not yet been identified, over-authorization may allow attackers to exploit these vulnerabilities in the future to steal funds.

Preventive measures: In principle, only authorize the necessary amount for interacting contracts and regularly check and revoke unnecessary authorizations. When signing off-chain permit authorizations, be sure to clearly understand the target contract/asset type/authorization amount, and think twice before proceeding.

4. Phishing authorizations

Risk overview: Clicking on malicious links and being induced to authorize malicious contracts or users.

Preventive measures: 1) Avoid blind signing: Before signing any transaction, ensure that you understand the content of the transaction you are about to sign, and ensure that every step is clear and necessary. 2) Be cautious about authorization targets: If the authorization target is an EOA address (Externally Owned Account) or an unverified contract, you must be vigilant. Unverified contracts may contain malicious code. 3) Use phishing protection wallet plugins: Use wallet plugins with phishing protection, such as OKX Web3 wallet, which can help identify and block malicious links. 4) Protect mnemonic phrases and private keys: Any website that requests your mnemonic phrase or private key is a phishing link; do not enter this sensitive information on any website or application.

5. Malicious profit-seeking scripts

Risk overview: Running malicious profit-seeking scripts can lead to the installation of trojans on computers, resulting in private key theft.

Preventive measures: Be cautious when running unknown profit-seeking scripts or software.

In summary, we hope that users can be extremely cautious when engaging in on-chain interactions and protect their wallets and asset security.

Q3: Outline classic phishing types and techniques, and how to identify and avoid them?

WTF Academy: I would like to answer this question from another perspective: once users discover that their assets have been stolen, how can they distinguish whether it is a phishing attack or private key leakage? Users can usually identify these two types of attacks by their characteristics:

1. Characteristics of phishing attacks: Hackers typically use phishing websites to obtain authorization for one or more assets under a single wallet from users, thereby stealing assets. Generally, the types of stolen assets correspond to the number of times users authorized on the phishing website.

2. Characteristics of private key/mnemonic phrase leakage: Hackers gain complete control over all assets across all chains under a single or multiple wallets of the user. Therefore, if one or more of the following characteristics appear, it is highly likely to be private key leakage:

1) Native tokens are stolen (e.g., ETH on the ETH chain), as native tokens cannot be authorized.

2) Multi-chain assets are stolen.

3) Multi-wallet assets are stolen.

4) Multiple types of assets are stolen from a single wallet, and the user clearly remembers not having authorized these assets.

5) There was no authorization (Approval event) before the token theft or in the same transaction.

6) Gas transferred in will be immediately taken away by the hacker.

If the above characteristics do not apply, it is likely a phishing attack.

OKX Web3 Wallet Security Team: To avoid phishing, it is essential to pay attention to two points: 1) Always remember not to enter your mnemonic phrase/private key on any webpage; 2) Ensure that the links you visit are official links, and be cautious when clicking the confirmation button on the wallet interface.

Next, we will share some classic phishing scenarios to help users understand more intuitively.

1. Fake website phishing: Impersonating official DApp websites to lure users into entering their private keys or mnemonic phrases. Therefore, the primary principle for users is not to provide their wallet private keys or mnemonic phrases to anyone or any website. Secondly, check if the URL is correct, and try to access commonly used DApps using official bookmarks and reputable mainstream wallets, such as OKX Web3 wallet, which will alert users to detected phishing websites.

2. Stealing native chain tokens: Malicious contract functions are named with enticing names like Claim, SecurityUpdate, AirDrop, etc., while the actual function logic is empty, only transferring users' native chain tokens.

3. Similar address transfers: Scammers generate addresses that collide with the user's associated address, having the same beginning and ending characters, using transferFrom for zero-amount transfers to poison the user's transaction history, or using fake USDT for certain amount transfers, etc., to pollute the user's transaction history, hoping that users will later copy the wrong address from their transaction history.

4. Impersonating customer service: Hackers impersonate customer service, contacting users through social media or email, asking for private keys or mnemonic phrases. Official customer service will not ask for private keys; simply ignore such requests.

Q4: What security precautions should high-level profit seekers take when using various tools?

WTF Academy: Since profit seekers use a wide variety of tools, they should strengthen security precautions when using these tools, such as:

1. Wallet security: Ensure that private keys or mnemonic phrases are not leaked, do not store private keys in unsafe places, and avoid entering private keys on unknown or untrusted websites, etc. Users should back up their private keys or mnemonic phrases in a secure place, such as offline storage devices or encrypted cloud storage. Additionally, for wallets holding high-value assets, using multi-signature wallets can enhance security.

2. Preventing phishing attacks: When users access any related websites, they must carefully verify the URL and avoid clicking on links from unknown sources. Try to obtain download links and information from the project's official website or official social media to avoid using third-party sources.

3. Software security: Users should ensure that antivirus software is installed and updated on their devices to prevent malware and virus attacks. Additionally, regularly update wallets and other blockchain-related tools to ensure the latest security patches are in use. Due to previous security vulnerabilities in many fingerprint browsers and remote desktop applications, their use is not recommended.

By taking these measures, users can further reduce security risks when using various tools.

OKX Web3 Wallet Security Team: Let's first cite an industry-public case.

For example, the Bit Fingerprint Browser offers features like multi-account login, preventing window linking, and simulating independent computer information, which have attracted some users. However, a series of security incidents in August 2023 exposed its potential risks. Specifically, the "plugin data synchronization" feature of the Bit Browser allows users to upload plugin data to a cloud server and quickly migrate it to new devices by entering a password. Although this feature was designed for user convenience, it also poses security risks. Hackers infiltrated the server and obtained users' wallet data. By brute-forcing, hackers cracked users' wallet passwords from the data, gaining access to wallet permissions. Server records indicate that the server storing extension cache was illegally downloaded in early August (with logs recorded as late as August 2). This incident serves as a reminder that while enjoying convenience, one must also be vigilant about potential security risks.

Therefore, it is crucial for users to ensure that the tools they use are secure and reliable to avoid risks of hacking and data leakage. Generally, users can enhance security from the following dimensions.

1. Using hardware wallets: 1) Regularly update firmware and purchase through official channels. 2) Use on secure computers, avoiding connections in public places.

2. Using browser plugins: 1) Be cautious when using third-party plugins and tools, and choose reputable products, such as OKX Web3 wallet. 2) Avoid using wallet plugins on untrusted websites.

3. Using trading analysis tools: 1) Use trusted platforms for trading and contract interactions. 2) Carefully check contract addresses and calling methods to avoid operational errors.

4. Using computer devices: 1) Regularly update computer systems and software to patch security vulnerabilities. 2) Use reliable antivirus software to regularly scan for viruses in the computer system.

Q5: How can profit seekers manage multiple wallets and accounts more securely compared to a single wallet?

WTF Academy: Since profit seekers frequently engage in on-chain interactions and manage multiple wallets and accounts simultaneously, they need to pay special attention to asset security.

1. Use hardware wallets: Hardware wallets allow users to manage multiple wallet accounts on the same device, with each account's private key stored in the hardware device, which relatively ensures security.

2. Separate security strategies & separate operational environments: First, separate security strategies allow users to mitigate risks by separating wallets for different purposes, such as airdrop wallets, trading wallets, storage wallets, etc. For example, hot wallets can be used for daily trading and profit-seeking operations, while cold wallets can be used for long-term storage of important assets. This way, even if one wallet is compromised, other wallets will not be affected.

Secondly, separate operational environments allow users to manage different wallets using different devices (e.g., mobile phones, tablets, computers) to prevent security issues on one device from affecting all wallets.

3. Password management: Users should set strong passwords for each wallet account and avoid using the same or similar passwords. Alternatively, they can use password managers to manage passwords for different accounts, ensuring that each password is independent and secure.

OKX Web3 Wallet Security Team: For profit seekers, managing multiple wallets and accounts more securely is not an easy task. Here are some dimensions to improve wallet security:

1. Diversifying risks: 1) Do not store all assets in one wallet; diversify storage to reduce risk. Choose different types of wallets based on asset type and purpose, such as hardware wallets, software wallets, cold wallets, and hot wallets. 2) Use multi-signature wallets to manage large assets, enhancing security.

2. Backup and recovery: 1) Regularly back up mnemonic phrases and private keys, storing them in multiple secure locations. 2) Use hardware wallets for cold storage to prevent private key leakage.

3. Avoiding duplicate passwords: Set strong passwords for each wallet and account separately, avoiding the use of the same password to reduce the risk of one account being compromised leading to threats to other accounts.

4. Enable two-step verification: Where possible, enable two-step verification (2FA) for all accounts to increase account security.

5. Automated tools: Reduce the use of automated tools, especially those that may store your information on cloud or third-party servers, to minimize the risk of data leakage.

6. Limit access permissions: Only authorize trusted individuals to access your wallets and accounts, and restrict their operational permissions.

7. Regularly check wallet security status: Use tools to monitor wallet transactions to ensure no abnormal transactions occur. If any private keys are leaked, immediately change all wallets, etc.

In addition to the dimensions listed above, there are many more. Regardless, users should ensure wallet and asset security through multiple dimensions and not rely solely on a single dimension.

Q6: What protective suggestions are there regarding transaction slippage, MEV attacks, etc., that are practically related to profit seekers?

WTF Academy: Understanding and preventing transaction slippage and MEV attacks is crucial, as these risks directly affect transaction costs and asset security.

Regarding MEV attacks, common types include: 1) Front-running, where miners or trading bots execute the same transaction before the user's transaction to profit. 2) Sandwich attacks, where miners insert buy and sell orders before and after the user's transaction to profit from price fluctuations. 3) Arbitrage: Taking advantage of price differences in different markets on the blockchain for arbitrage.

Users can use MEV protection tools to submit transactions to miners through dedicated channels, avoiding public broadcasting on the blockchain. Alternatively, they can reduce transaction visibility time, i.e., minimize the time transactions stay in the memory pool, use higher Gas fees to speed up transaction confirmation, and avoid concentrating large transactions on a single DEX platform to lower the risk of being attacked.

OKX Web3 Wallet Security Team: Transaction slippage refers to the difference between the expected transaction price and the actual execution price, which usually occurs during high market volatility or low liquidity. MEV attacks refer to attackers exploiting information asymmetry and transaction privileges to gain excess profits. Here are some common protective measures for these two scenarios:

1. Set slippage tolerance: Due to the delay in transaction on-chain and potential MEV attacks, users need to set a reasonable slippage tolerance in advance to avoid transaction failures or fund losses due to market fluctuations or MEV attacks.

2. Batch trading: Avoid making large transactions all at once; instead, conduct transactions in batches to reduce the impact on market prices and lower slippage risk.

3. Use trading pairs with high liquidity: When trading, choose trading pairs with sufficient liquidity to reduce the occurrence of slippage.

4. Use anti-front-running tools: For important transactions, avoid going through the mempool, and use professional anti-front-running tools to protect transactions from being captured by MEV bots.

Q7: Can users use monitoring tools or professional methods to regularly monitor and detect abnormal wallet accounts?

WTF Academy: Users can use various monitoring tools and professional methods to regularly monitor and detect abnormal activities in their wallet accounts. These methods help enhance account security and prevent unauthorized access and potential fraud. Here are some effective monitoring and detection methods:

1) Third-party monitoring services: Many platforms currently provide users with detailed reports and real-time alerts on wallet activities.

2) Use security plugins: Some security tools can automatically block certain phishing websites.

3) Built-in wallet features: Wallets like OKX Web3 can automatically detect and identify certain phishing websites and suspicious contracts, providing warnings to users.

OKX Web3 Wallet Security Team: Currently, many companies or organizations provide a wealth of tools for monitoring wallet addresses. We have compiled some based on publicly available industry information, such as:

1. Blockchain monitoring tools: Use blockchain analysis tools to monitor abnormal transactions and fund changes in wallet addresses, and set up transaction notifications for addresses.

2. Secure wallets: Use professional wallets like OKX Web3 wallet, which supports pre-execution of transactions, allowing for timely detection of suspicious transactions; it can also detect and block interactions with malicious websites and contracts.

3. Alert Systems: These can send alerts for transaction or balance changes based on user-defined conditions, including SMS, email, or app notifications.

4. OKLink token authorization queries: Check wallet authorizations for DApps, and promptly revoke unnecessary authorizations to prevent abuse by malicious contracts.

Q8: How to protect on-chain privacy security?

WTF Academy: While the transparency of blockchain brings many benefits, it also means that users' transaction activities and asset information may be misused, making on-chain privacy protection increasingly important. However, users can protect their personal identity privacy by creating and using multiple addresses. It is not recommended to use fingerprint browsers, as many security vulnerabilities have been reported.

OKX Web3 Wallet Security Team: More and more users are beginning to pay attention to privacy security protection. Common methods include:

1. Multi-wallet management: Diversifying user assets reduces the risk of a single wallet being tracked or attacked.

2. Using multi-signature wallets: Requiring multiple signatures to execute transactions increases security and privacy protection.

3. Cold wallets: Storing long-term held assets in hardware wallets or offline storage to prevent online attacks.

4. Do not disclose addresses: Avoid sharing your wallet address on social media or public platforms to prevent being tracked by others.

5. Use temporary emails: When participating in airdrops or other activities, use temporary email addresses to protect personal information from exposure.

Q9: If a wallet account is stolen, how should users respond? Are there efforts or mechanisms in place to help stolen users recover assets and protect user assets?

WTF Academy: We will address phishing attacks and private key/mnemonic phrase leakage separately.

First, when a phishing attack occurs, the assets authorized by users to hackers will be transferred to the hacker's wallet, and this portion is almost impossible to rescue/recover; however, the remaining assets in the user's wallet are relatively safe. The RescuETH team recommends that users take the following measures:

1) Revoke asset authorization given to hackers.

2) Contact security companies to track the stolen assets and hacker addresses.

Secondly, when private key/mnemonic phrase leakage occurs, all valuable assets in the user's wallet will be transferred to the hacker's wallet, and this portion is almost impossible to rescue/recover. However, the assets that cannot be transferred by the hacker, such as unlocked staked assets and unissued airdrops, can be rescued, which is also our main rescue target. The RescuETH team recommends that users take the following measures:

1) Immediately check if there are any assets in the wallet that have not been transferred by the hacker. If there are, transfer them to a secure wallet immediately. Sometimes hackers may overlook assets on less popular chains.

2) If the wallet has unlocked staked assets and unissued airdrops, contact a professional team for rescue.

3) If you suspect that malicious software has been installed, quickly perform antivirus scans on your computer and remove the malware. If necessary, consider reinstalling the system.

Currently, we have made many attempts to rescue stolen users' assets.

First, we are the first team to conduct large-scale rescues of assets from stolen wallets. During the Arbitrum airdrop event in March 2023, I collected over 40 private keys from leaked wallets from nearly 20 followers and raced against hackers for the $ARB airdrop. Ultimately, we successfully rescued over $40,000 worth of ARB tokens, with an 80% success rate.

Second, when a user's wallet is stolen, economically valuable assets will be transferred away by hackers, while NFTs or ENS that have no economic value but hold sentimental value for users may still remain in the wallet. However, since the wallet is monitored by hackers, any incoming gas will be immediately taken away, preventing users from transferring these assets. To address this, we developed a self-service rescue application: RescuETH App, which is based on Flashbots bundle's MEV technology. It can package transactions of incoming gas and outgoing NFT/ENS to prevent hackers from listening to scripts that transfer out gas, thereby successfully rescuing assets. The RescuETH App is currently in internal testing and is expected to enter public testing in June.

Third, for the parts of assets in users' stolen wallets that can be rescued (unlocked staked assets and unissued airdrops), we offer a paid customizable white-hat rescue service. Currently, our white-hat team consists of nearly 20 security/MEV experts and has rescued over 3 million RMB in assets from stolen wallets on chains like ETH, Solana, and Cosmos.

OKX Web3 Wallet Security Team: We will elaborate from two perspectives: user measures and OKX Web3 wallet security mechanisms.

1. User measures

Once users discover that their wallet has been stolen, it is recommended to urgently take the following measures:

1) Emergency response measures

1) Immediately transfer funds: If there are still funds in the wallet, they should be immediately transferred to a secure new address.

2) Revoke authorizations: Immediately revoke all authorizations through management tools to prevent further losses.

3) Track the flow of funds: Timely track the flow of stolen funds and organize detailed information about the theft process to seek external help.

2. Community and project support

1) Seek help from project parties and the community: Report the incident to project parties and the community; sometimes project parties can freeze or recover stolen assets. For example, USDC has a blacklist mechanism that can block fund transfers.

2) Join blockchain security organizations: Join relevant blockchain security organizations or groups to leverage collective power to solve problems.

3) Contact wallet customer support: Timely contact the wallet's customer support team for professional help and guidance.

2. OKX Web3 wallet security mechanisms

The OKX Web3 wallet places a high priority on user asset security and continuously invests in protecting user assets, providing multiple security mechanisms to ensure the safety of users' digital assets.

1) Black address label library: The OKX Web3 wallet has established a rich black address label library to prevent users from interacting with known malicious addresses. This label library is continuously updated to address evolving security threats, ensuring the safety of user assets.

2) Security plugins: The OKX Web3 wallet provides built-in anti-phishing protection features to help users identify and block potential malicious links and transaction requests, enhancing the security of user accounts.

3) 24-hour online support: The OKX Web3 wallet offers 24-hour online support to promptly follow up on incidents of stolen or scammed assets, ensuring users can quickly receive help and guidance.

4) User education: The OKX Web3 wallet regularly publishes security tips and educational materials to help users raise security awareness and understand how to prevent common security risks to protect their assets.

Q10: Can you share some cutting-edge security technologies, such as whether AI can be used to enhance security protection?

WTF Academy: Security in the blockchain and Web3 fields is an evolving area, with various cutting-edge security technologies and methods continuously emerging. Some currently popular ones include:

1) Smart contract auditing: Utilizing AI and machine learning to automate the security auditing of smart contracts can detect vulnerabilities and potential risks in smart contracts, providing faster and more comprehensive analysis than traditional manual audits.

2) Anomaly detection: Using machine learning algorithms to analyze on-chain transactions and behavioral patterns to detect abnormal activities and potential security threats. AI can identify common attack patterns (such as MEV attacks, phishing attacks) and abnormal transaction behaviors, providing real-time alerts.

3) Fraud detection: AI can analyze transaction histories and user behaviors to identify and flag potential fraudulent activities.

OKX Web3 Wallet Security Team: Currently, AI has many practical applications in the Web3 field. Here are some scenarios where AI is used to enhance Web3 security protection:

First, anomaly detection and intrusion detection: Utilizing AI and machine learning models to analyze user behavior patterns and detect abnormal activities. For example, deep learning models can be used to analyze transaction behaviors and wallet activities to identify potential malicious behaviors or abnormal activities.

Second, phishing website identification: AI can analyze webpage content and link characteristics to detect and block phishing websites, protecting users from phishing attacks.

Third, malware detection: AI can analyze the behavior and characteristics of files to detect new and unknown malware, preventing users from downloading and executing malicious programs.

Fourth, automated threat response: AI can automate response measures, such as automatically freezing accounts or taking other protective actions upon detecting abnormal activities.

Finally, thank you all for reading the third issue of the OKX Web3 wallet "Security Special Edition." We are currently preparing the content for the fourth issue, which will include real cases, risk identification, and practical security operations. Stay tuned!

Disclaimer:

This article is for reference only and is not intended to provide (i) investment advice or recommendations; (ii) offers or solicitations to buy, sell, or hold digital assets; or (iii) financial, accounting, legal, or tax advice. Holding digital assets (including stablecoins and NFTs) involves high risks, which may fluctuate significantly or even become worthless. You should carefully consider whether trading or holding digital assets is suitable for you based on your financial situation. You are solely responsible for understanding and complying with applicable local laws and regulations.