Hidden Dangers in Wallets: Token Authorization Explains

Discover how Trust Wallet tackles token approval risk with safer UX and tools for 200m+ users. Eve Lam, Ciso Trust Wallet.

Invisible risks hidden in your wallet

Token approval is one of the most overlooked threats in Web3. Every time you connect your wallet and approve DAPP to access the token, you often allow indefinite access. Over time, these approvals quietly accumulate in the background. Most users don’t even know they exist, and in fact, more than $475 million has been stolen since 2020, according to reported approval hacks and exploits. This is more than a technical gap in our eyes. This is a UX failure, a security blind spot, and a risk that you don’t need to carry around for the next wave of users entering Web3.

Leading safety is the central responsibility of wallet providers, with over 15 million active users and over 200 million downloads, which is fully embraced by Trust Wallet. Fixing token approval issues is part of that commitment, ensuring stronger protection for everyone who relies on us and helping us build a safer Web3 ecosystem.

Why has infinite approval become the norm?

When using a distributed application (DAPP), you cannot move tokens unless you grant permission Token approval transaction. An approved smart contract can spend tokens on your behalf. Most Daps are looking for Unlimited approval Therefore, there is no need to approve it every time. Once permitted, these approvals will remain active in the chain until they are revoked.

This convenience is costly. Token approval is quiet, permanent and dangerous by default. Users will provide unlimited access without realizing DAPPS. Wallets rarely display or describe these permissions. Attackers will misuse them – often after approval has been granted.

How approval risks are built over time

Real-world threats often follow these patterns. A malicious actor may trick you into giving you unlimited approval to a harmful contract. It may not be a problem if your wallet was empty at the time. Later, when you deposit funds, the contract will drain them instantly. Or, a once-trusted contract is violated, turning a safe permit into a dangerous vulnerability.

What’s even more concerning is that it’s not easy to view or manage token approvals with most wallets today. The average user has trouble finding out which contracts have access to their assets and is unable to assess which contracts are high risk.

Occasion: Native tools were built the right way

Most wallets don’t have a native, user-friendly interface to verify and manage token approvals. Some people rely on third-party tools and permissions buried deep within the settings. As a result, users often don’t realize which agreements are available ongoing access.

Trust Wallet recognizes gaps. And we’re working to close it. Therefore, token approval management is listed on the roadmap for the fourth quarter of this year. Scaling, designed with care and built to be released with security first accuracy. Our vision is for a smart, user-centric dashboard that simplifies complex blockchain authority into clear, actionable insights.

How EIP-7702 can help reduce approval risk

Reducing the number of approvals users need to create is just as important as managing them well. The EIP-7702 is designed to assist in this by allowing wallets to simulate and pre-approve all required actions in one secure session. Once signed, the relayer handles both background approvals and intended transactions.

At 7702:

• The wallet simulates all the necessary approvals and transactions.
• The user signs the intent of one session.
• Both approval and action are performed together.
• There is less “approval” to “approve” pop-ups, and less unlimited approvals.

Shortening 7702 streamlines UX while reducing the need for risky, persistent authority.

Rethinking approval hygiene as daily UX

Keeping control over token approval should feel as natural as any other routine check that people do to keep them safe online. This process works best when integrated into normal wallet usage rather than being left as another task that the user has to remember.

Trust Wallet has built features to make this maintenance easier. Conservative reminder A dashboard that clearly lists active approvals, visual cues for risk or outdated contracts, an option to automatically expire access after inactivity, and all active permissions in one place. If these safeguards are part of a normal flow, the user will remain protected without any extra effort.

Not only the interface, but also the wallet as a parent

Token approval is one of the bigger questions. How can wallets do more to protect users?

At Trust Wallet, security is built into everything we build. Our security scanners proactively detect known fraud and malicious contracts, blocking dangerous approvals and DAPP connections. Since 2023, we have blocked over $458 million from reaching malicious contracts and helped us recover more than $2 million with stolen funds.

We are the first major independent wallet to achieve ISO/IEC 27001 and 27701 certifications, meeting internationally recognized standards for security and privacy.

The same principle leads to the approval tool for tokens: built-in protection, not bolts.

Future Headlines: Construction for the next 200 million people

Our responsibility goes beyond maintaining what we have already built. It’s about preparing for the next wave of Web3 users and the challenges they face. This means that we will continue to deploy features that will remove friction and enhance safety, such as better defaults and smarter automation, biometric logins for extensions, and simplicity of cross-chaining in flexgas.

Everything we’ve covered is, of course, one of the most important developments on the horizon is our acceptance management of native tokens. This allows all users to clearly provide a view, make permissions faster, simpler, or adjust. Combined with other advances in security and usability, more people can explore Web3 with more confidence.

This approach comes to our view that wallets are not just tools, they are essentially Web3 companions. Complexity, surface risks and opportunities should be possible without compromising the safety of users.

Close thoughts

Token approval must not be invisible, permanent or a reason for users to lose funds. Smarter tools, safer defaults, and built-in protection allow this risk to be a thing of the past. Trust Wallet is built for today’s users and the next 200 million people. There is a responsibility to lead on that scale.

stay tuned. A safer, smarter wallet experience is ongoing.

Hidden Danger Posts in Your Wallet: Explained Token Recognition first appeared in Beincrypto.