Crypto Romance Scammers Utilize Targeted Approval Phishing
Crypto romance scammers have found a new technique called targeted approval phishing, according to a report by on-chain analytics firm Chainalysis. This method has seen significant growth in the past two years, with around $374 million in suspected stolen crypto in 2023.
Understanding Approval Phishing
Approval phishing is a scam where victims are deceived into signing transactions that give scammers access to their wallets and allow them to drain funds. While this tactic is not new, it is now being employed more frequently by pig-butchering scammers.
The Pig-Butchering Technique
Pig butchering involves scammers establishing trust with victims on dating sites over an extended period. They manipulate victims into parting with their money, often through fake investment schemes. The term “pig butchering” refers to extracting maximum funds from the target before executing the scam.
A Change in Tactics
Chainalysis’ research lead, Eric Jardine, explained that this new phishing approval method deviates from traditional pig-butchering scams. Instead of gradually convincing victims to invest, scammers now focus on getting victims to sign transactions that will drain their funds.
The Scale of Targeted Approval Phishing
MetaMask lead product manager Taylor Monahan identified over a thousand addresses associated with targeted approval phishing scams, resulting in an estimated total theft of $1 billion since May 2021. However, due to underreporting, the actual figure could be much higher.
Educating Users to Prevent Scams
Chainalysis suggests that the crypto industry should educate users not to sign approval transactions unless they trust the entity on the other side. This precautionary measure could help mitigate the risk of falling victim to targeted approval phishing scams.
Hot Take: Protecting Yourself from Crypto Romance Scammers
Crypto romance scammers are continuously evolving their tactics to deceive unsuspecting victims. To protect yourself, it is essential to be cautious when interacting with individuals online and avoid sharing personal and financial information. Additionally, always verify the legitimacy of investment opportunities and double-check wallet addresses before approving transactions. By staying informed and exercising caution, you can minimize the risk of falling prey to targeted approval phishing scams.
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