DApps, also called Decentralized Applications, are known as digital applications that run on a blockchain network. If you connect your wallet to a DApp, it usually requires access to your wallet balance when you sign the authorization.
1. Is there any risk when I connect my wallet to the DApp or sign my wallet on a smart contract?
There is no risk to connect your wallet to a third-party DApp, as long as you don’t sign any smart contracts (by entering your password and paying the smart contracts fees).
When you connect your wallet to a third-party DApp, the information exchanged with the DApp is just your Public information (your public addresses and balances), the private key and the seed phrase are not exposed to the DApp.
But please be very careful, indeed, if you sign a smart contract on a DApp, you will authorize the DApp to interact with your own wallet by itself, so if you sign a smart contract that authorizes the third-party DApp to manage your funds stored on your wallet, you have to be 100% sure that the DApp you are using have security audits, and is not a scam or malicious.
Indeed, if you authorized a third-party malicious DApp to access and spend your funds from your wallet, this DApp can steal all your funds, below screenshot is an example of a smart contract that authorizes a third party to manage your USDT TRC20 wallet :
Also, there are a legitimate smart contracts that authorizes a DApp to use your funds (like Uniswap, Pancakeswap, and all other DApps that have security audits and trusted by the mass since a while), in this case, you authorize the DApp to access to your wallet because the DApp need to be authorized to spend your funds, to exchange the funds for another token for the swap.
2. What can I do or how to avoid using a scam DApp?
To avoid scam DApps, you should know that if it's too good to be true, that's probably a scam, beware of the Minings DApps, these DApps are High Yield Investment Programs and reward you a huge percentage if you send your funds to the DApp.
Indeed, you will receive some rewards the first few days/weeks, but after a while, the DApp will disappear and be the same as the rewards stored on your decentralized wallet. This is because you signed a smart contract that authorizes this third-party DApp to spend the funds stored in your decentralized wallet.
So please NEVER use any DApps sent by any stranger on any social networks, even if it's a friend, because many scam DApps have a referral program, they spread them to their family and friends to increase their own yield, but in the end, everyone loses all their funds.
So please always do your own research before investing in any third-party DApp. There is no guarantee and no way to get the funds back if the funds are lost because the users authorized a third party to manage the funds and lost them because of authorizing a scam to use his funds.
3. What can I do if I encountered a DApp scam or I was scammed by a DApp?
If you have been scammed by a third-party DApp, all you can do is contact the third-party DApp team where you have invested, to get more information why they take out your funds and to ask them to send your funds back.
If they don't want to, the only thing that you can do is to contact the police to investigate this website, track the funds and catch the scammers.
In the meantime, don't send any tokens to your wallet because the DApp will have access to them. The safest way for you is to create a new wallet and send the remaining funds from your previous wallet to the new and safe wallet.
4. How to know if a DApp is a scam or not?
If you want to know if a DApp is legit or not, the Best way is to do your own research online before investing in any DApp.
Simply enter the name of the DApp, + “scam” in a google search, or also verify the society behind the DApp, or the team, or if it’s a famous DApp or not. Also, verify that there are security audits on it, speak with the crypto community on different channels, and don’t trust anyone sending you private messages or that you need to contact on Whatsapp. When you enter any crypto channel on social networks, you will receive a lot of private messages, so please never answer them and only speak in public channels where a lot of users can help you and see your whole conversation.