Counterfeit USDT tokens defraud Venezuelan merchants

Fraudsters have targeted small and medium businesses across Venezuela by sending counterfeit tokens that appear as USDT in merchant wallets. The fake tokens display the USDT name and symbol but are tied to different smart-contract addresses or to less-used chains.

Attackers begin by posing as customers and offering to pay in USDT. They transfer the counterfeit token to a merchant’s payment address and share what look like on-chain transaction details. Many point-of-sale systems and wallet apps show the incoming token balance without checking the token’s contract address or market liquidity, which leads some merchants to hand over goods or provide cash change before confirming the transfer.

When merchants try to swap the received token or move it out, they often cannot convert it. Scammers use control over the fake token’s smart contract or its liquidity settings to block exchanges or to drain any legitimate funds used during attempted conversions. In several cases the counterfeit tokens were minted in large amounts but had no market liquidity, so exchanges or automated market makers would not accept them for real dollars or official USDT.

A merchant who asked not to be named recounted that a customer “sent USDT” and the shop’s app showed a deposit. Staff then found they could not exchange the balance. “We thought we had been paid in dollars. By the time we realized something was wrong, the buyer had already left,” the merchant reported.

Business owners say the scams often start on messaging platforms and online marketplaces where buyers and sellers negotiate. Payments arrive quickly and buyers pressure sellers to complete the sale or provide change before the token’s contract can be checked. Vendors using simple wallet interfaces or basic point-of-sale apps report being especially exposed because those tools prioritize ease of use over contract verification.

Cryptocurrency security specialists note that programmable blockchains allow anyone to create tokens that imitate official names and symbols. They point out that tokens created on those networks can be controlled by malicious actors, and wallets or payment processors that do not validate contract addresses or check token liquidity leave recipients at risk.

Security advisers recommend merchants verify the incoming token’s contract address against the official USDT addresses published by the issuer, wait for multiple on-chain confirmations, and use established exchanges or custodial services to convert funds. They also advise disabling automatic token displays in wallet apps when possible and refusing requests for “activation” payments or conversion fees from buyers.

Tether, the issuer of USDT, maintains official contract addresses for its tokens across several blockchains and warns against relying solely on token names or symbols to confirm payments. The company encourages users to check contract addresses before accepting transfers.