Addressing Watch-Only Scams

Our user operations team has recently detected a trend on social media within which scammers square measure victimisation watch-only address balances to deceive users concerning truth balance of a notecase. we’d wish to discuss however you’ll be able to avoid such scams and clear the air on watch-only addresses.

watch-only

Why watch-only defrayment is not possible while not a personal key
Imported watch-only address balances square measure presently enclosed within the total notecase balance, however a user should have already got the non-public key to pay that balance.

The following scams conceive to deceive users by suggesting that watch-only address balances square measure proof that the funds shown square measure on the market to pay. To be clear, this is often not the case.

Scam #1: Blockchain wallets purchasable
In one version of this scam, scammers can post in teams and pages on social media concerning commerce Blockchain wallets holding a substantial balance. Screenshots of the notecase dashboard displaying the balance square measure usually shared as proof of the on the market balances. However, this balance is related to a watch-only address that the deceiver has foreign into the notecase. when buying the notecase, the client logs in exactly to get they’re unable to pay those funds while not a personal key.

Scam #2: Earn mining profits
A second version of this scam claims a notecase has been specially organized for mining or investment functions. To activate the mining method, the user should give their email address and square measure told to create a deposit into a notecase provided by the deceiver. The deceiver sends funds to AN foreign watch-only address, that makes it appear like deposited funds square measure multiplying. Again, as a result of these funds can not be spent while not the non-public key, this balance remains useless to the user.

Summing things up
Importing a watch-only address permits a user to handily monitor that address’ dealings activity and balance. it’ll not enable the user to pay any bitcoin related to that address or give access to the non-public key.

How to avoid a watch-only scam
Know that there are not any special wallets organized to mechanically generate profits
Avoid transacting with anyone creating a grandiose or “too sensible to be true” provide
Always produce your own notecase — ne’er use any notecase some other person created or had access to (even if you modified the wallet’s password)
To safely receive, forever generate a brand new address by clicking for the asking and ne’er via a watch-only address
Why use a watch-only address if i am unable to pay from it?
This is to not say that a watch-only address serves no purpose. Any bitcoin address will be foreign as watch-only therefore a user will keep track of and monitor dealings activity right from the notecase dashboard. This makes for a convenient various to one by one observation every address of interest in an exceedingly block person. for a few users, these square measure addresses they hold the non-public keys to in an exceedingly separate notecase, or they will even be addresses they merely have AN interest in observation. foreign balances that square measure known as watch-only will be viewed by planning to Settings -> Addresses and scrolling all the way down to foreign Addresses.

That said, watch-only scams square measure increasing in quality on social media, and that we encourage you to exercise caution once participating with offers that appear too sensible to be true.

Do you have any questions about watch-only addresses that we have a tendency to didn’t clear up during this post? allow us to grasp by reaching intent on @AskBlockchain or sharing your feedback here.

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