Crypto Phishing Scams Resulted in $295 Million in Losses in 2023, Says Cybersecurity Firm
Cybersecurity firm Scam Sniffer has revealed that crypto phishing scams led to the theft of over $295 million worth of assets last year. These scams involve the use of “wallet drainers,” a type of crypto-malware that deceives victims into authorizing malicious transactions. According to Scam Sniffer, approximately 324,000 cryptocurrency holders fell prey to wallet drainers in 2023.
Impersonating Circle and Exploiting Price Fluctuations
On March 11th alone, wallet drainers managed to steal nearly $7 million by impersonating stablecoin issuer Circle during price fluctuations of USDC. The largest single wallet drainer, known as Inferno Drainer, stole a staggering $81 million throughout 2023.
Various Methods Used by Phishing Websites
Scam Sniffer highlights that phishing websites employ multiple methods to direct traffic to their sites. These include hacking official platforms like X and Discord, attacking official project frontends, airdropping tokens, taking over expired Discord links, spamming mentions and comments on various platforms, as well as paying for search advertisements on Google and X.
The firm explains that while hacking attacks have a noticeable impact and prompt community response within minutes, other methods like airdrops, organic traffic, taken-over Discord links, and targeted personal message phishing attacks are less conspicuous.
Hot Take: Protecting Yourself Against Crypto Phishing Scams
Crypto phishing scams continue to be a significant threat to cryptocurrency holders. To protect yourself, it’s crucial to remain vigilant and follow best practices:
- Always double-check the authenticity of websites and links before providing any sensitive information or authorizing transactions.
- Enable two-factor authentication (2FA) for your crypto wallets and accounts.
- Regularly update your devices and software with the latest security patches.
- Be cautious of unsolicited messages or requests for personal information.
- Use reputable antivirus and anti-malware software to detect and prevent phishing attempts.
By staying informed and implementing these security measures, you can significantly reduce the risk of falling victim to crypto phishing scams.
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