Don't Fall Victim to Scammers During Ethereum Merge

Fraudsters may try to capitalize on any confusion during the merge, so don't let them steal your crypto.

The long-awaited Ethereum (ETH) merge is almost upon us. Ethereum's merge from a proof-of-work to a proof-of-stake validation model will begin tomorrow (Sept. 6) and be completed within a couple of weeks. The switch will cut Ethereum's energy consumption by over 99% and co-founder Vitalik Buterin believes it will make the network more secure in the long run.

However, scammers often take advantage of times of change. They can use them to trick investors into sharing sensitive information or signing contracts that could cost them their crypto. Here are three ways to avoid falling victim to scams around the Ethereum merge.

1. Be wary of unsolicited messages from exchanges or wallet providers

Phishing is an increasingly common scam, both inside and outside the crypto world. The fraudsters imitate a trusted party -- such as your crypto exchange -- and attempt to get you to share your information. You might get a message that asks you to click on a link that takes you to a spoofed (fake) website or installs malware on your computer.

During the merge, you might receive emails that ask you to log in to activate your new tokens, or to unlock your staked Ethereum. It might even say your Ethereum holdings have been compromised in some way. If you receive an email purporting to be from a service you use, here are some signs it could be a trick:

• The email address is not quite right. It might be sent from a Gmail or Hotmail account, or the company name may be slightly misspelled.
• It demands urgent action. Phishers want to panic you into taking action so you're not as careful as you usually might be.
• The logo isn't quite right. Perhaps the color on the company logo is slightly off, or there's something about the font that doesn't seem normal. This is a red flag.
• It doesn't use your name. If you have an account with a company, it will usually write to you by name. An email with a generic Dear Sir or Madam, or Dear Crypto Investor, is likely to be a fraud.
• It asks you to share your password. Customer service employees will never ask for your password or crypto wallet seed phrase.

As a rule, don't click on links in emails from companies, even those you have accounts with. Instead, go to the website directly from your browser or log into your account from your app. If the message says there's an issue that needs to be dealt with, contact customer support via the website or app. You can even call its customer support and try to speak to a human, if the exchange has a support line.

2. Wait before making any transactions related to the Ethereum fork

Some parts of the Ethereum community don't want to move to proof-of-stake. This could mean the blockchain has to fork -- basically split in two. It will duplicate everything that currently exists on Ethereum and then the two chains will go their separate ways. You'd then have two coins, your ETH and your forked ETH. If there are more forks, you'll have even more copies of your crypto. You may be tempted to sell any forked tokens straight away, but this could be risky.

One risk is something called a replay attack. This would involve replicating the transaction ID for your sale of the forked ETH on the actual Ethereum blockchain. Scammers would create an identical transaction to steal your real ETH. The people behind the proposed fork told Decrypt this won't happen, but it's still worth treading carefully.

There are other ways scammers can trick you into selling your real ETH, when you think you are selling the forked ETH. You might think you are transacting on the forked blockchain when you're actually transacting on the real one. Don't try anything new, and don't rush into any transactions -- your forked ETH will still be there after the dust has settled.

3. Don't touch anything that promises ETH2 tokens

Once the merge has happened, you will still own your ETH, and you don't need to do anything. There is no such thing as ETH2, and anyone promising trades, swaps, or investments is trying to trick you out of your Ethereum. Similarly, there will not be any airdrops. If you receive an airdrop, the scammer could take control of your wallet when you attempt to claim the rewards.

If you are contacted by someone posing as an Ethereum support agent, don't give them any information. As we mentioned earlier, never share your password or seed phrase with anyone -- especially not someone who contacts you out of the blue.

Bottom line

The best way to avoid scammers during the Ethereum merge is to do nothing. The Ethereum blockchain will merge and your Ethereum will still be your Ethereum. If there is a fork, you may also receive the forked tokens, but wait for the chaos to pass and let any potential scams play out before you try to do anything with those tokens.