Phishing Attacks Drain $104 Million from Crypto Users in First Two Months of 2024

Phishing Attacks Drain $104 Million from Crypto Users in First Two Months of 2024

Crypto News – During the initial stretch of this year, phishing incidents have wreaked havoc on crypto users, resulting in significant financial losses. Data provided by security firm Scam Sniffer reveals that approximately 97,000 users fell victim to phishing attacks, collectively losing a staggering $104 million. January saw losses amounting to $57.7 million, while February witnessed a further $46.8 million drained from unsuspecting users.

Ethereum enthusiasts found themselves at the forefront of these attacks, bearing the brunt of $78 million in losses, primarily associated with the depletion of assets such as ether and ERC20 tokens. The modus operandi typically involved victims inadvertently endorsing malicious phishing signatures like “ERC20 Permit” and “increaseAllowance,” thereby granting unauthorized access to their funds.

The ramifications of phishing attacks are severe, as a single endorsement of a malicious signature can lead to the complete loss of assets stored in a wallet, underscoring the critical need for heightened vigilance among crypto users.

An analysis by Scam Sniffer sheds light on the tactics employed by cybercriminals, highlighting the prevalence of deceptive comments on social media platforms, notably Twitter, as a means of directing users to phishing sites. These comments, masquerading as legitimate accounts, entice users to click through to malicious sites where their assets are compromised.

Scam Sniffer’s report underscores the alarming trend of victims being ensnared by phishing websites through fraudulent comments on impersonated Twitter accounts.

In total, crypto users suffered losses amounting to $300 million throughout 2023 due to phishing attacks, signaling a pressing need for enhanced security measures and user education in the cryptocurrency space.