SlowMist, a prominent blockchain investigation firm, has recently uncovered a sophisticated crypto scam targeting users engaged in offline USDT transactions using physical cash exchanges. The scam operates by luring victims into connecting their imToken wallet to a malicious node controlled by the perpetrators.

The scheme begins with the fraudsters establishing trust with the target by encouraging them to download the legitimate imToken app and execute small USDT and ETH transactions. Once trust is established, the scammers prompt the user to modify their node settings, granting the scammers access to manipulate the victim's USDT balance and create the illusion of receiving a deposit.

However, when the user attempts to withdraw the funds, they discover that the inflated balance is a deception. By this point, the scammers have absconded with the cash obtained from the in-person transaction, leaving the victim defrauded and empty-handed.

SlowMist's investigation reveals that scammers exploit vulnerabilities in blockchain technology, particularly leveraging flaws in Ethereum's Remote Procedure Calls (RPC), to manipulate user balances and contract data. Connecting to an untrustworthy node exposes users to such nefarious manipulation tactics, highlighting the importance of vigilance and caution when engaging in crypto transactions.