Phishing attacks continue to cause significant losses to cryptocurrency users.
According to data from security firm Scam Sniffer, approximately 97,000 users fell victim to phishing incidents in the first two months of this year, resulting in a whopping $104 million in losses. This includes losses from phishing incidents of $57.7 million in January and $46.8 million in February.
Ethereum users were the primary target, with $78 million in total losses related to user assets such as Ethereum and ERC20 tokens.
The majority of stolen funds were due to victims unknowingly signing malicious phishing signatures, including the “ERC20 Permit” and “increaseAllowance” signatures. If malicious, these signatures could allow attackers to access the victim’s funds without their knowledge.
Phishing attacks can be a huge problem as signing just one malicious signature can result in the loss of all assets stored in your wallet.
Scam Sniffer’s analysis also highlights the tactics used by these cybercriminals, noting that many victims were lured to phishing sites through deceptive comments on social media platforms, particularly Twitter. These comments, disguised as legitimate accounts, attempt to direct users to malicious sites where their assets may be compromised.
“Most victims were lured to phishing websites through phishing comments impersonating Twitter accounts,” Scam Sniffer said.
Disclaimer: The Block is an independent media outlet delivering news, research and data. As of November 2023, Foresight Ventures is a majority investor in The Block. Foresight Ventures invests in other companies in the cryptocurrency space. Cryptocurrency exchange Bitget is an anchor LP of Foresight Ventures. The Block continues to operate independently to provide objective, impactful and timely information about the cryptocurrency industry. Below are our current financial disclosures.
© 2023 The Block. All rights reserved. This article is provided for informational purposes only. It is not provided or intended to be used as legal, tax, investment, financial or other advice.