Overview
An approval scam tricks users into approving token spending for a malicious contract, enabling fund theft. It abuses the token approval mechanism. It is one of the most common wallet-drain techniques.
How It Works
A malicious dapp asks the user to sign an approval granting it the right to spend tokens. Once approved, the attacker transfers tokens out of the user's wallet. Users often approve without checking the contract.
Why It Matters
Approval scams have drained billions from wallets. They highlight the danger of blind signing and excessive approvals. Tools like Revoke.cash and approval checks reduce the risk.
Related Concepts
Approval Scams relate to Token Approvals, ERC-20, and Security tools like Revoke.cash. They are a top wallet risk.