According to Phantom, traders should ensure the authenticity of tokens by using official contract addresses, verifying tokens, and being cautious of transaction warnings. Cross-referencing with the project's official website or CoinGecko is recommended to avoid counterfeit tokens. This is crucial to prevent potential financial loss from fraudulent tokens.

According to Phantom, a common scam in the cryptocurrency market involves copycat tokens that mimic popular tokens by using similar names, icons, and symbols. These fraudulent tokens often have slight variations in their contract address designed to deceive traders into purchasing them. This tactic can lead to significant financial losses for unsuspecting investors. Traders are advised to verify contract addresses and exercise caution before making any purchases. Source: Phantom's Twitter post on February 21, 2025.