Guide to Approval Drainer Scams: How to Spot and Avoid Them

Approval drainer scams are one of the most dangerous and sophisticated attacks in the cryptocurrency space. Unlike traditional phishing scams, these frauds exploit wallet permissions, allowing scammers to drain funds directly from victims’ wallets without their immediate knowledge.

Scammers trick users into approving malicious smart contracts, giving them unlimited spending permissions on their assets. Once the approval is granted, attackers can access and transfer funds without further consent from the victim. This guide will explain how approval drainer scams work, real-life examples, warning signs, and best practices to keep your wallet secure.

1. What Is an Approval Drainer Scam?

An approval drainer scam occurs when a user unknowingly grants a malicious smart contract permission to spend their assets. Scammers disguise these contracts as legitimate transactions, but in reality, they give full control over the victim’s funds to an attacker.

How Approval Drainer Scams Work

1. Fake Transaction or Airdrop – Users are asked to approve a transaction or interact with a new token.
2. Smart Contract Approval Request – The contract asks for spending permission on the user’s assets.
3. User Confirms Approval – Once approved, the attacker gains control over the assets.
4. Funds Are Drained – Scammers withdraw or transfer the funds without further user action.

Common Methods of Approval Drainer Scams

• Fake Airdrops – Users approve a contract to “claim” free tokens.
• Malicious DApps – Scam websites trick users into signing approvals.
• Phishing Links – Fake messages direct users to dangerous smart contracts.
• Token Trading Scams – Tokens with approval mechanics exploit wallet permissions.

2. Real-Life Approval Drainer Scam Examples

Example 1: Fake OpenSea Listings

Scammers sent fake OpenSea links asking users to approve listings. Victims unknowingly signed contracts that granted unlimited access to their NFTs, leading to stolen assets.

More details: OpenSea Security Warnings

Example 2: Malicious DeFi Staking Contracts

Users were tricked into approving DeFi staking pools with fraudulent contracts, allowing scammers to drain their funds instantly.

More details: DeFi Safety Report

Example 3: Fake Uniswap Approval Requests

Users attempting to swap tokens on Uniswap encountered fraudulent tokens that required full wallet approval. Once granted, scammers withdrew the victims’ entire balance.

More details: Uniswap Security Advisory

3. How to Spot an Approval Drainer Scam

Red Flags of Approval Drainers

• Unusual Permission Requests – Requests for unlimited token spending.
• Fake Website Links – URLs resembling real platforms but with slight modifications.
• Unsolicited Airdrops – Receiving new tokens that require an approval transaction.
• High Transaction Fees – Unexpectedly high gas fees when approving a contract.
• Anonymous Developers – No verifiable team behind the project.

How Scammers Trick Users into Granting Approvals

• Fake Exchange Listings – Tokens requiring wallet approvals before trading.
• Discord & Telegram Scams – Scammers post links to fake approval transactions.
• Twitter/X Giveaway Scams – Social media accounts impersonate real projects and send phishing links.

4. How to Avoid Approval Drainer Scams

• Always Review Smart Contract Permissions Before Approving.
• Use tools like RugCheck.xyz to analyze smart contracts before granting permissions.
• Verify URLs and DApps. Always check for official domain names.
• Avoid Unsolicited Airdrops. If a random token appears in your wallet, do not interact with it.
• Revoke Unused Approvals Regularly. Use Revoke.cash to remove unnecessary contract permissions.

5. Tools to Detect and Prevent Approval Drainer Scams

• Revoke.cash – Removes unnecessary approvals. Visit here
• Etherscan & BscScan – Checks contract permissions.
• RugCheck.xyz – Analyzes smart contracts for security risks.
• DeBank – Displays all active wallet approvals.

6. Legal Actions and Regulatory Warnings Against Approval Drainer Scams

Recent Crackdowns

• FBI Warning on Wallet Approval Scams
• SEC Cybersecurity Alerts on Crypto Frauds
• Interpol Tracking of Smart Contract Exploits

More on crypto scam prevention: FBI Cybercrime Alerts

7. How to Recover If You’ve Been Scammed

1. Immediately Revoke Approvals. Use Revoke.cash to remove the malicious contract.
2. Report the Scam. Notify blockchain security platforms and crypto exchanges.
3. Transfer Remaining Assets. Move unaffected assets to a new secure wallet.

Conclusion

Approval drainer scams are among the most dangerous threats in crypto. They exploit smart contract permissions to steal funds without requiring additional confirmations from the victim.

Always verify transactions, review approvals before confirming them, and regularly check for unnecessary permissions. Stay informed and share this guide to help protect others in the crypto community.