In this article:
We’ll explain how scammers are using fake seed phrase scams to steal funds, how the scam works, and how you can protect yourself.
What is the seed phrase scam?
Scammers are posing as crypto beginners and publicly posting their wallet seed phrases in YouTube comments, pretending to need help moving their funds.
At first glance, this might seem like an innocent mistake from a new user. However, it’s actually a trap designed to trick unsuspecting individuals into sending their own crypto to the scammers.
This has become prevalent on the Best Wallet YouTube channel — the most important thing to remember is to never interact or import the seed phrase.
How the scam works:
1. Fake seed phrase posted publicly
Scammers create new YouTube accounts and post comments like:
“Excellent video, thank you! This might not be directly related, but I want to ask: I have USDT in my wallet and a 12-word seed phrase: iron observe slam major mad decorate (...). What steps should I take to transfer my funds to Binance?”
They include a full secret recovery/seed phrase, making it seem like free crypto is up for grabs.
2. Someone imports their wallet into their Best Wallet
Someone sees the comment and decides to test the seed phrase in a wallet app. They find thousands of dollars worth of USDT (a stablecoin) inside.
3. The catch: hidden fees
The wallet requires a small amount of a gas fee token (ETH, BNB, and so on) to move the funds.
The person sends ETH to the wallet, hoping to transfer the USDT out.
4. The person takes your gas fee tokens and crypto
As soon as the ETH is deposited, it’s instantly drained to another wallet.
The scammer has set up a multi-signature wallet, meaning the person can’t actually access or withdraw the USDT.
Instead of getting “free” USDT, the victim unknowingly funds the scammer’s wallet.
How to protect yourself:
1. Never import random seed phrases
Even if a seed phrase is shared publicly, it’s always a trap. Importing it into your wallet could also expose you to security risks.
2. Be cautious of ‘free money’ scams
If something seems too good to be true, it probably is. Scammers exploit greed and curiosity to trick people into funding their schemes.
3. Secure your own wallet
• Never share your seed phrase with anyone.
• Use a trusted, non-custodial wallet like Best Wallet.
• Be wary of scams on social media, YouTube, and crypto forums.
What to do if you fall for this scam
The most effective way of not falling for this scam is to never import a wallet that isn't yours, even if the user promises funds to help them.
However, if you do fall for this, first cease all transactions immediately. Stop sending any further funds.
Next, report the scam. If you encounter these scams, report the comments and accounts to YouTube, as well as the Best Wallet team.
Lastly, stay informed. Scammers constantly adapt their tactics—keep up with security tips to stay ahead.
If you think you are being scammed, immediately stop contact, and please contact the Best Wallet support team via [email protected] or open a ticket on our Support site.
Important reminder: Best Wallet will never request your wallet’s private key or secret recovery phrase. Keep this information strictly private and do not share it with anyone.