Phishing airdrop sites and fake NFT mints are one of the most dangerous security threats to occur within the crypto ecosystem. These hacks take advantage of token approvals-a staple feature utilized across all decentralized applications-to help their hackers access users' assets illicitly. With this, malicious actors can move tokens, take control of NFTs, or drain entire wallets without any further confirmations needed in mere moments.
The article explains how these scams work, why users are falling prey to them, and what kinds of precautions can reduce the risks.
Understanding Token Approvals: A Foundation of Web3 Interaction
What are token approvals?
Approvals, in general, give a smart contract permission to spend or move a user's tokens on behalf of that user. Many legitimate actions require such approvals, including:
Swapping of tokens in decentralized exchanges.
Transfer and mint NFTs
Staking or depositing tokens in DeFi platforms
Claiming legitimate rewards or airdrops
Interacting with blockchain games
Approvals exist to prevent users from having to sign a new transaction every time they want to transfer something, but the same convenience creates avenues for misuse when approvals are granted to malicious contracts.
Why Approvals Can Be Dangerous
Approvals can allow a contract to:
Spend unconstrained amounts of some token
Move NFTs from the user's wallet
Continue operating long after initial approval
Perform transfers without further user confirmation
This would become a tool for scammers to drain a wallet if given unknowingly.
How Fake NFT Mints Exploit Token Approvals
Fake NFT mint websites remain one of the most common wallet-draining tactics in Web3. They either impersonate actual projects or fabricate hype for new “limited-time” collections.
1. Sham Mint Buttons That Trigger Approval Requests
Instead, it will send a hidden approval request without initiating any minting transaction. The prompts may appear to be valid, but in reality, the approval will grant permission for the attacker to:
Spend a certain token
Access all NFTs under a user's wallet
Grant unlimited access to assets
Many users only pay attention to gas fees or the "mint" label, which means they completely miss the approval details.
2. Malicious Smart Contracts Disguised as Mint Contracts
Fake contracts may look just like real mint contracts but contain dangerous functions such as:
transferFrom() to transfer tokens
setApprovalForAll() to manage NFTs
Hidden transfer logic to sweep assets
Once the user has signed the transaction, the contract executes these functions—sometimes instantly.
3. Social Engineering and Hype Manipulation
Scammers count on psychological triggers:
Fake "Mint Live" announcements on social media
Compromised Discord accounts sharing urgent links
Spam bots commenting to pretend legitimacy
Claims of urgency, such as "Only 100 spots left!"
This pressure encourages users to interact with the contract in an insufficiently verified manner.
How Phishing Airdrop Sites Exploit Token Approvals
Airdrops attract millions of crypto users, so this also makes them targets in phishing scams. Fake airdrop sites impersonate well-known projects or completely invent fully fictitious ones.
1. Fake Eligibility Check Hides Approval Transactions
A common tactic is to prompt the user to “Check Eligibility.”
Instead, the website will display a transaction that represents a concealed approval. The thief then uses this to:
Spend tokens
Move assets to a different wallet
Long-term control over the user's funds
Legitimate airdrops rarely ask for token approvals.
2. Abuse of Infinite Approval Permissions
Most phishing sites request that users sign transactions granting infinite approval, a setting which allows the contract to spend all of a user's tokens indefinitely. The scammers wait until enough users sign these approvals, then execute a batch transfer to steal tokens in bulk.
3. Fake "Claim Rewards" Buttons Causing Transfers
What seems to be a claim button may veil the following dangerous functions:
Unlimited token spending approvals
NFT operator permissions
Direct token transfer logic
These actions would, to the uninitiated user, look exactly like claiming legitimate rewards.
4. Timing Attacks Based on Major Airdrop Announcements
Scammers create fake airdrop web pages in periods of high user interest, which usually occurs right after some real project announces new rewards. That way, their phishing pages seem more believable and attract more click-throughs.
Comparison Table: Legitimate vs. Fake Mint/Airdrop Interactions
Aspect | Legitimate Interaction | Fake Mint or Phishing Airdrop |
Transaction type | Message signing or mint | Approval request or transfer |
Website authenticity | Verified official domain | Cloned or misspelled domains |
Prompts | Clear purpose no hidden actions | Confusing urgent or disguised prompts |
Permissions requested | Minimal and specific | Broad or unlimited approvals |
Risk level | Low | High to critical |
Typical Attack Path Used by Scammers
Below is the common flow of events in a token-approval-based scam.
Attack Steps
Step 1: User finds a link through social media, DMs, or fake ads.
Step 2: The site prompts the user to connect their wallet.
Step 3: A disguised approval request is presented as a “mint,” “claim,” or “eligibility check.”
Step 4: User grants approval without reviewing permission details.
Step 5: Scammer uses the permission to move tokens or NFTs.
Step 6: Wallet is drained without further interaction.
Step 7: User realizes the loss, but blockchain transactions cannot be reversed.
Why These Scams Are Effective
1. Limited User Awareness
Many crypto users don’t fully understand what approvals are or assume approvals are harmless. This makes them more vulnerable to deceptive transactions.
2. Deceptive Website Design
Fake sites often replicate branding from legitimate projects, making it difficult to distinguish between authentic and fraudulent pages.
3. Time Pressure and FOMO
Scammers create urgency to push users into acting quickly.
This emotional manipulation overrides cautious behavior.
4. Persistent Approvals
Once granted, approvals stay active until manually revoked.
Scammers sometimes wait days or weeks before executing transfers.
Security Tips: How to Protect Yourself
Key Safety Measures
Verify all URLs through official sources and avoid clicking random links.
Check transaction details before approving anything.
Reject approval requests that do not match the action you intended.
Use hardware wallets to separate cold storage from active wallets.
Revoke unused approvals regularly using blockchain explorers or revocation tools.
Be cautious during hype periods when scammers target trending projects.
Bookmark official project websites for safe navigation.
Pros and Cons of Token Approvals
Token approvals are essential for Web3 functionality, but understanding their risks is equally important.
Pros
Enables smooth user experience across Web3 platforms
Reduces friction in DeFi and NFT interactions
Supports automation in smart contract processes
Cons
Vulnerable to misuse by malicious sites
Many users misunderstand approval permissions
Infinite approval can allow full asset drainage
Requires manual revocation to remove risks
Conclusion
Fake NFT mints and phishing airdrop sites exploit the trust users place in token approvals. By disguising malicious approval requests as legitimate mint or claim transactions, scammers gain the ability to transfer tokens or NFTs without further user confirmation. These attacks are successful because they combine technical exploitation with psychological manipulation, urgent calls to action, and deceptive website designs.
Understanding the mechanics of token approvals—and regularly reviewing or revoking them—remains one of the most effective ways to protect assets. As Web3 adoption expands, user education and awareness become crucial tools in preventing approval-based attacks. Staying informed and cautious is the strongest defense against evolving crypto scams.
“People Also Ask” Questions — Answered
1. Can scammers empty my wallet through token approvals?
Yes. Approval-based scams allow attackers to move tokens or NFTs without asking for additional confirmation.
2. Are airdrops safe to claim?
Airdrops are safe only if they come from verified, official sources. Phishing airdrop sites are widely used to steal assets.
3. How do I identify a fake NFT mint?
Check the project’s official links, verify contract addresses, and review transaction prompts carefully.
4. What happens if I accidentally approve a malicious contract?
Scammers can drain your tokens. You must revoke the approval immediately using tools like Revoke.cash or Etherscan.
5. Can I recover stolen crypto?
Generally, no. Blockchain transactions are irreversible. Prevention is critical.
