Ethereum Layer-2 chain-based phishing theft surges
Ethereum layer 2 chain Base has experienced a massive increase in funds stolen through phishing scams, with a nearly 1,900% surge since January. According to data from Scam Sniffer, a blockchain fraud prevention platform, approximately $3.35 million was stolen from Base in March alone, a 334% increase from February and a significant increase from the $169,000 loss in January.
Comparison with BNB chain
The BNB chain operated by Binance also saw a similar increase in phishing scams in March. Overall, the cryptocurrency industry lost $71.5 million to phishers across all chains in March. This figure surpasses the previous month’s figures.
(1/7) 🚨💸 March phishing report by ScamSniffer
Cryptocurrency phishing scams hit $71 million in March, a 50% increase in stolen funds compared to February.
In the first quarter of 2024, phishing scams resulted in a total loss of $173 million. 📈🔒 pic.twitter.com/Z40WHJRYv4— Scam Sniffer | Web3 Scam Prevention (@realScamSniffer) April 2, 2024
Tactics and Trends
Scam Sniffer highlighted that fake X (formerly Twitter) accounts sharing phishing links remain a key tactic for scammers. The platform detected more than 1,500 incidents in March. The rise in phishing scams on Base is occurring in conjunction with the memecoin craze on Coinbase-backed chains. This pegs Base’s total value at over $3.2 billion so far in 2024, a 370% increase.
Hacking vs. Phishing
While phishing scams are on the rise, cryptocurrency hack thefts fell 48% in March to $187.2 million, according to blockchain security company PeckShield. This decline is due in part to the recovery of $98.8 million in stolen funds during the month, including significant recovery from the $97 million Munchibles exploit.
Notable Hacks and Recovery
Notable incidents include the $40 million loss from Curio’s MakerDAO-based smart contracts and the $11.6 million hack targeting Prisma Finance. Negotiations are currently underway with the hackers to return the funds stolen from Prisma Finance.