Phishing Scams Drain $300 Million from Crypto Users in 2023
In a recent publication, cryptocurrency security firm Scam Sniffers revealed that popular crypto phishing scams stole nearly $300 million from 320,000 users in 2023. These scams have been increasing in frequency as bad actors use more sophisticated techniques to deceive users.
Wallet Drainers Deploy Sophisticated Tactics
The report highlighted that wallet drainers, deployed on phishing websites, were successful in tricking users into signing false transactions, resulting in the loss of assets and increased regulatory scrutiny. Phishing activities have steadily increased each month, with scammers using more advanced tactics to evade security measures.
$295 Million Stolen through Wallet Drainer Scams
Last year, wallet drainer scams resulted in $295 million being taken from 324,000 victims. These scams involved airdrops and hacking incidents, with March seeing larger activities due to fluctuations in USD Circle rates.
Growth in Drainer Services
Although some drainers left the market, they were quickly replaced by new ones. The report highlighted that drainers use various techniques to gain traction, such as paid Google and social media scams. Fake airdrops, Discord links, and Twitter comment sections are also commonly used by scammers.
Highest Drainers in 2023
The top drainer in 2023 was Inferno Drainer, stealing $81 million from 134,000 users. MS and Angel Drainer followed with $59 million and $20 million stolen from 63,000 and 30,000 users respectively. Other notable drainers include Monkey, Venom, and Pink Drainer.
Decrease in Cryptocurrency Scams
Overall, cryptocurrency scams decreased compared to 2022. Blockchain security firm Beosin reported reduced scams across all sectors of the industry, with September and November witnessing the highest illicit activities.
Hot Take: Wallet Drainers Pose Significant Threat to Crypto Users
Phishing scams targeting crypto users have become increasingly sophisticated, resulting in significant financial losses. These scams exploit vulnerabilities in the industry and deceive users into signing false transactions, leading to asset loss and regulatory scrutiny. Despite efforts to combat these scams, wallet drainers continue to evolve and find new ways to trick unsuspecting users. It is crucial for crypto users to stay vigilant and informed about the latest phishing techniques employed by bad actors. Increased awareness and robust security measures are necessary to protect against these threats and safeguard user assets.
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