Crypto Phishing Scams Drain $300 Million from 320,000 Users in 2023
Crypto phishing activities have increased in 2023, with scammers using wallet drainer malware to steal nearly $300 million from victims, according to blockchain security firm Scam Sniffer.
Wallet Drainers Exploit Phishing Websites
Scam Sniffer’s report reveals that wallet drainers have stolen $295.5 million in crypto assets from over 324,000 victims in the past year. These malware are deployed on phishing websites that mask their server addresses using services like Cloudflare. The websites trick users into signing malicious transactions with their crypto wallets, allowing scammers to steal funds.
Continuing Cycle of Phishing Activities
As older wallet drainers exit the scene, new ones quickly take their place, intensifying the cycle of phishing activities throughout the year.
The Notorious Players
A few wallet drainers dominated the illicit market in 2023. Inferno Drainer emerged as the most successful, stealing $81 million from 134,000 victims since March. Monkey drained $16 million before retiring in February and recommended Venom as a replacement, which went on to steal $27 million before ceasing operations in April. NFT drainer Pink was responsible for $18 million in stolen funds since March.
Phishing Methods and Trends
Phishing methods include hacking crypto projects’ websites or official accounts to generate traffic to malicious sites. Airdrops of NFTs or tokens, spam comments on social media, and paid traffic via Google search ads are also used. Each peak in thefts often coincided with significant crypto events or security breaches.
Scam Sniffer’s Efforts
Scam Sniffer has scanned nearly 12 million URLs in the past year, identifying approximately 145,000 malicious web links. Their open-source blacklist now contains almost 100,000 malicious domains.
Hot Take: Protecting Yourself from Crypto Phishing Scams
Crypto phishing scams pose a significant threat to users’ funds and personal information. To protect yourself, it is crucial to stay vigilant and follow best practices. Be cautious when clicking on suspicious links, especially in emails or messages. Double-check the website’s URL before entering any sensitive information. Use hardware wallets or reputable software wallets with strong security measures. Regularly update your devices and software to patch any vulnerabilities. By taking these precautions, you can minimize the risk of falling victim to crypto phishing scams.
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