Scammers Steal $3 Million in Cryptocurrency through Fake Crypto Websites
A recent report reveals that scammers have managed to steal more than $3 million in cryptocurrency from victims during the holiday season. These scammers created fraudulent versions of popular crypto platforms, such as Zapper, Lido, and DefiLlama, and used Google Ads to promote their fake websites.
Victims Tricked into Approving Malicious Transactions
Once users visited these phony websites, they were tricked into approving transactions that drained their crypto wallets into the scammers’ accounts. This type of scam, known as a wallet draining scam, takes advantage of the token approval process on blockchains like Ethereum. The scammers utilized a service called MS Drainer to automate and enforce unauthorized withdrawals.
Evading Google’s Ad Screening Practices
The scammers managed to evade Google’s ad screening practices by using regional targeting and frequently switching landing pages. This allowed their ads to bypass Google’s phishing scam detection systems. The report identified over 10,000 fraudulent sites connected to the MS Drainer service.
MS Drainer Service Facilitates Crypto Scams through Google Ads
The MS Drainer service has been responsible for siphoning nearly $60 million in crypto from over 63,000 victims since March 2023. Scammers could purchase the service for a flat fee of $1,499 and unlock additional features for $699 to $999. The developer of MS Drainer charged upfront fees instead of taking a percentage of profits.
Rise in Decentralized Finance Hacking Attacks
This recent phishing scam is part of an alarming increase in wallet-draining hacking attacks within decentralized finance. In the past month alone, tools like Inferno and Monkey Drainer have stolen millions of dollars in crypto funds. As cryptocurrency adoption grows, it is crucial for investors to remain vigilant against phishing attacks and only use trusted platforms.
Hot Take: Cybercriminals Exploit Holidays to Steal Cryptocurrencies
This brazen heist targeting victims during the holiday season serves as a reminder that cybercriminals will stop at nothing to steal cryptocurrencies. With the rise of crypto threats, it is essential for cryptocurrency holders to stay vigilant, even during festive times. Digital advertising leaders like Google also need to enhance their security measures to detect and combat crypto scams more effectively.
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