A fresh wave of scams is aimed at cryptocurrency investors, with scammers
focusing on well-known projects such as Dymension (DYM), OpenSea, and others.
A recent analysis from Web3 security company Scam Sniffer claims that phishing
attempts have increased and have cost victims over $55 million in just
January. These cryptocurrency frauds, which are frequently connected to
project events and airdrops, emphasize the necessity for increased awareness
among the crypto community.
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Crypto Scam: $55 million is stolen by hackers January
A worrying trend in the cryptocurrency space has been brought to attention by Web3 security firm Scam Sniffer: an increase in phishing assaults that target projects across different Ethereum Virtual Machine (EVM) chains. Notably, using dishonest means, over $55 million was embezzled in January 2024, with the top 7 victims losing an incredible $17 million.
These scams, which frequently occur in tandem with airdrops and other project-related operations, have impacted about 40,000 people, demonstrating how widespread the problem is.
According to the survey, con artists have created over 11,000 phishing sites by using advanced strategies to trick unwary consumers. Interestingly, these websites were used to pose as well-known initiatives, including OpenSea, Manta Network, and Dymension (DYM).
Furthermore, a lot of these scams take advantage of holes in ERC20 Permit and increaseAllowance signatures in order to trick victims into unintentionally authorizing harmful transactions. The frequency of these kinds of cryptocurrency frauds emphasizes how important it is to proceed with caution, particularly when there is a lot of activity in the cryptocurrency community.
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An in-depth examination of the fraudulent schemes
Scam Sniffer's thorough analysis, which delves further into the workings of these phishing assaults, uncovers a concerning trend. The Ethereum mainnet had the most thefts, but there were also large losses on other networks, including Arbitrum, BNB, Optimism, and Polygon.
Interestingly, as was previously noted, phishing websites are now the main tool used by con artists to trick gullible people.
Meanwhile, many malicious websites pose as respectable initiatives and use trickery to trick consumers into disclosing private information or approving fraudulent transactions. They are frequently indistinguishable from genuine platforms. Detection attempts are made more difficult when fraudsters can hide their trails and avoid detection by using Create2 to create temporary addresses.
Being aware of the latest developments in the cryptocurrency space and using care are still the most important ways to protect yourself against risks.