Crypto Investor Falls for Phishing Trap: Here’s How It Happened
A cryptocurrency investor who signed a fraudulent blockchain transaction without checking the contract address lost $3 million to phishing. The danger of digital asset fraud was brought to light by this instance once more.
Someone fell victim to a phishing attack, signed a malicious transfer, and lost 3.05M $USDT. Stay alert, stay safe. One wrong click can drain your wallet. Never sign a transaction you don’t fully understand.
Attackers use social engineering techniques known as crypto phishing to distribute phony links to victims in an attempt to obtain private keys to cryptocurrency wallets and other sensitive data. Before sending the $3 million to the bad actor, the victim, like the majority of investors, most likely verified the wallet address by comparing just the first and last few characters.
Crypto Phishing Nightmare: How Investors Lost Millions in Digital Heists
Another victim lost more than $900,000 in digital assets to a sophisticated phishing attack on Sunday, underscoring the need for increased due diligence on the part of investors. This happened 458 days after the victim unintentionally signed a fraudulent approval transaction to a wallet-draining scheme, according to Cointelegraph.
These sums are insignificant compared to the $71 million that was lost in a May 2024 wallet poisoning fraud. When the con artists altered their strategy, the swindle took an unexpected turn. They returned the $71 million after two weeks after coming under increasing pressure from international blockchain researchers who had discovered the attacker’s possible Hong Kong-based IP address.
Phishing Scams Are More Dangerous Than Ever
Hackers are rapidly turning their attention from code to human psychology flaws, which may be simpler to get around than protocol security measures. According to CertiK‘s annual Web3 security report, phishing assaults were the most costly attack vector for the cryptocurrency industry in 2024, resulting in 296 instances and over $1 billion in stolen digital assets. At least three of the over 300 phishing attempts that occurred in 2024 caused losses exceeding $100 million.
Phishing was the most costly attack vector last year. Our figures are conservative; the actual figure is higher when you consider unreported incidents and other types of phishing scams like pig butchering.
a CertiK spokesperson
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