Coinbase incorporates fraud-detecting feature for dApps

Original author: Joel Oluwatobi

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Coinbase has incorporated a new feature to protect users from fraudulent dApps. The crypto exchange made this known via an announcement on its official Twitter page. With the new feature, the Coinbase wallet will automatically warn users when they visit malicious dApps. The firm believes that the latest addition will give an improved layer of protection. This will help protect users against the increasing hacks and fraudulent activities in the Web3 ecosystem.  

For the new feature to function effectively, Coinbase added an enormous database of fraudulent dApps. So, whenever users visit these dApps, the feature will check this database and verify if the dApps are part of the listed ones. Once it ascertains, the feature will show a warning sign for the user. The database contains open-source data, blockchain security experts’ research, and user reports. This indicates that the database is subjected to continuous improvement. Interestingly, any user can contribute to the database by reporting fraudulent dApps to security@coinbase.com. 

In the announcement, Coinbase wallet assured users of incorporating more features that will protect users from fraudulent activities in the Web 3.0 space. The firm vowed that it will always champion the safety of users as its utmost priority. Further, Coinbase wallet urged users to always verify links before clicking them. The firm added that users should also avoid clicking links from untrusted sources.

Alarming Rate Of Fraudulent Activities In The Web 3.0 Space

Many early adopters of Web 3.0 are bleeding heavily into fraudulent activities in the space. One of the notable features of the innovations is the liberty of interacting directly between users. Therefore, terminating the need for third-party tech service providers. Unfortunately, fraudsters leverage this liberty to steal funds from the space. The absence of a third-party regulating party further makes these malicious activities relatively easy. 

Within the year’s first half, Web 3.0 users have lost more than $2 billion to hacks and fraudulent activities. Hackers often aim at Twitter accounts, Discord servers, and websites to carry out their mischievous activities. The Coinbase team is working tirelessly toward protecting users from these fraudulent acts. 

Despite the alarming rate of fraudulent activities in the space, there are high hopes for the future of Web 3.0. Early adopters strongly believe it’s the next-generation internet and offers advanced security, transparency, privacy, and scalability. With high hopes, there are still doubts about the security efficiency of web 3.0. Advocates of Web 3.0 see the security lapses as a challenge they must rise against; Coinbase is working to minimize, if not curb, the lapses.

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