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An X (Twitter) post by a scam sniffer revealed a staggering number of victims who lost about $47 million to Crypto Phishers.
An X (Twitter) post reveals that over 57,000 victims fell prey to crypto phishing scams in February, with fake accounts on social media platform X being the critical factor behind such scams.
What are Phishing Scams?
Phishing scams related to cryptocurrency usually aim to get hold of online wallet-related information. Scammers target private keys of crypto wallets, which are necessary to access funds kept in the wallet. Their approach is comparable to other phishing endeavors and is linked to fake websites, as mentioned earlier.
Scammers send emails that tempt the recipients to access a specially created website and enter private key details. Once the hackers access this information, they steal the cryptocurrency from the wallet.
Scam Sniffer Reveals an Eye-Opening Data
According to Scam Sniffer’s latest report, crypto phishing scams resulted in a loss of over $46.8 million in the last month. The report also noted, “Most victims were lured to phishing websites through phishing comments from impersonated Twitter accounts.”
Scam Sniffer found that Ethereum mainnet was responsible for 78% of the total thefts, with ERC-20 tokens being the primary assets stolen, accounting for 86% of all assets stolen.
It further noted that most Ethereum token thefts occurred due to users signing phishing signatures and transaction approvals, such as Permit, IncreaseAllowance, and Uniswap Permit2.
Moreover, most wallet drainers have started using account abstraction wallets as token approval spenders. Account abstraction allows for more functionality and smart contract compatibility for Ethereum wallets.
Growing Scams in Crypto
In February, MicroStrategy’s X account was hacked, resulting in around $440,000 in crypto theft. Furthermore, Compound Finance, Rocket Pool, Blockchain Capital, and even Vitalik Buterin have had their X accounts hacked by crypto phishers in recent months.
Despite a higher number of phishing victims than in January, the total amount stolen in February was lower than the first month of the year. Additionally, February also saw a significant decrease in the number of victims who lost over $1 million.
Scammers usually target the social media accounts of prominent individuals, at times replying to their posts with a fake account designed to mimic the genuine one or even hacking the account to post phishing links.
How to Avoid Being Scammed in Crypto
Crypto scammers have increasingly been using ‘approval phishing’ methods to steal funds, as reported by Cointelegraph in December.
To prevent falling victim to cryptocurrency scams, refrain from sharing private keys or interacting with investment managers who promise fast returns. It’s important to avoid clicking on suspicious links, contacting scammers, or sending them money under any circumstances. It is also advised to take caution when approached by unfamiliar “celebrities” who express their interest in purchasing cryptocurrency because usually it’s their own interest and benefits.
In addition to the above precautions, ignoring job listings for cash-to-crypto converter or crypto miner openings and scrutinizing claims about explicit material is essential. Scammers may threaten to post explicit material about users unless they send cryptocurrency. It is a form of blackmail, so report it. Lastly, do not accept “free” money or crypto, as nothing is truly free.
Summary
Crypto phishing scams caused over $46.8 million in losses last month. Scammers target private crypto wallet keys to access funds. The analyst suggests that To avoid scams, never share private keys, avoid suspicious links, and be cautious of investment managers promising quick profits or unknown “celebrities” reaching out to buy cryptocurrency.
Disclaimer
The views and opinions stated by the author or any people named in this article are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks, cryptos, or other related indexes comes with a risk of financial loss.
Adarsh Singh is a true connoisseur of Defi and Blockchain technologies, who left his job at a “Big 4” multinational finance firm to pursue crypto and NFT trading full-time. He has a strong background in finance, with MBA from a prestigious B-school. He delves deep into these innovative fields, unraveling their intricacies. Uncovering hidden gems, be it coins, tokens or NFTs, is his expertise. NFTs drive deep interest for him, and his creative analysis of NFTs opens up engaging narratives. He strives to bring decentralized digital assets accessible to the masses.
