The seed phrase scam seems to have made a resurgence recently, and that is when you get a DM somewhere asking you to help withdraw their “stuck funds” and they also send you the seed phrase for the wallet.
The idea of this scam is that the intended victim will load in the seedphrase into their wallets and realise that there are ERC20 tokens, such as USDC in the wallet that can’t be withdrawn because the wallet does not have enough ETH to cover gas fees for the withdrawal. Then you, as either a good samaritan, or someone looking to withdraw the stuck funds for yourself realize the issue, will be tempted to send eth and then transfer the “stuck funds” to a different wallet.
The scammer however has a script running that detects transfers into the wallet and immediately creates a transaction that transfers the eth that you just transferred in, out. This way you will never be able to manually transfer the stuck funds out.
This can be taken advantage of if the scammer has not setup their tools properly. From inspecting a lot of these wallets, quite a number of them are vulnerable to a faster script.
If you receive such a scam DM, just forward it to me and I’ll see if it’s possible to frontrun their withdrawal using my own tools.
Stay safe out there.