I’ve heard that recently, the number of DeFi scam victims is rapidly increasing. In fact, this has become a pretty serious issue, and many users have their wallets emptied before they even realize it.

The mechanism behind DeFi scams is surprisingly simple. The scammers approach people through social media or messaging apps, offering things like “a chance to make money.” They especially target crypto beginners. The less knowledge someone has, the easier it is for them to believe when complicated industry jargon is thrown at them.

In reality, DeFi scams generally progress in three stages. First, the scammer wins the victim’s trust, and then gets them to click a “seemingly safe” WalletConnect link. Once you click it, your wallet gets connected to a malicious DApp, and the scammer can execute transactions on their own. By the time you notice, your funds are already gone.

Here’s a scary example: a man named Jack received a message from a group impersonating employees of a certain large exchange. They told him they could teach him how to earn money with DeFi, and when he followed their instructions and clicked the link, all of the USDT in his wallet disappeared within seconds. This kind of thing is really happening.

To protect yourself from DeFi scams, basics matter the most. Don’t connect to DApps you’ve never heard of. There’s absolutely no way someone is making claims like earning over 1000% in a year—so ignore anyone who offers that. Be cautious about investment pitches from strangers. In other words, it’s about thinking in a common-sense way.

If you end up falling victim to a DeFi scam, first disconnect your wallet and change your password immediately. If a bank account is involved, freeze your card and take appropriate action. After that, it’s important to report it to the police without fail. There’s also a possibility you may be able to recover the funds later, so this step is truly important.

After all, the best way to reduce damage from DeFi scams is for users to get informed and stay alert—this is the strongest form of defense. It’s wise to develop a habit of always being suspicious, because there’s usually a catch behind “too good to be true” offers.