A recent scam is preying on users through physical transactions involving USDT, capitalizing on a manipulated remote procedure call (RPC) function on Ethereum nodes.

According to a report from security firm Slowmist on April 26, this scam aims to dupe unsuspecting users by convincing them to download the legitimate imToken wallet. Victims are enticed with 1 USDT and small amounts of ETH as initial bait.

Once the victim installs the wallet, they are instructed to alter their ETH RPC URL to a node that has been maliciously tampered with, controlled by the scammer. The RPC, essential for decentralized application (dApp) development, interacts with nodes to query balances, send transactions, or interact with smart contracts.

After modifying the RPC URL, the victim's wallet displays a falsified balance, making them believe they've received substantial funds. However, when attempting to transfer the miner's fees to cash out the USDT, they realize the deception. By then, the scammer has vanished with the transferred fees.

"Users often focus solely on credited funds, overlooking potential risks. Scammers exploit this trust, using convincing tactics like transferring small amounts to deceive users," explained researchers at Slowmist.

An investigation into one victim's wallet revealed receipt of 1 USDT and 0.002 ETH from the scammers' address. Further tracking showed the scammer sending 1 USDT to three other wallets. The scammer's address was linked to various trading platforms and flagged as "Pig Butchering Scammers" by MistTrack, an on-chain tracking tool.

Slowmist urged users to exercise caution during transactions, advising skepticism to avoid falling victim to fraud. Despite increased awareness, cryptocurrency scams persist, with recent instances involving high-profile figures like Tom Holland and fake Space X giveaways on YouTube during the April 8 solar eclipse.