In February, the cryptocurrency community faced a significant challenge as approximately 57,000 individuals fell victim to crypto phishing scams. It caused a staggering loss of around $47 million. Cybercriminals are the ones who carry out these scams. They target unsuspecting individuals through various deceptive tactics.
Cybercriminals Exploit ERC20 Flaws, Targeting Unsuspecting Crypto Users
Despite the substantial losses, there is a ray of hope as the number of victims who lost over $1 million decreased by 75% compared to January. This decrease suggests that efforts to raise awareness about cryptocurrency security may be having a positive impact, but slowly.
Ethereum mainnet thefts account for 78% of total losses. ERC-20 tokens, the main asset scammers target, account for 86% of stolen funds. Cybercriminals target these tokens because they’re popular and easy to trade based on Ethereum.
These scams often exploit ERC20 token smart contract flaws. Many thefts occur when people unknowingly sign phishing emails like Permit, IncreaseAllowance, and Uniswap Permit2. This allows bad guys access users’ wallets and move money without their consent.
One of the most common cybercrime tactics is creating cryptocurrency-looking phishing websites. Phishing comments from fake Twitter accounts promote these websites, which often offer tempting deals or giveaways. The victims of these scams don’t know what’s going on and give out private information, losing money.
Cybercriminals now target Safe or Account Abstraction wallet users. These wallets are meant to improve security and privacy, but scammers are using them as “token approval spenders” to make phishing attacks easier.
Cryptocurrency Phishing Scams Highlight Need for Vigilance
Crypto phishing scams are common, highlighting the need for caution and strong security when dealing with cryptocurrency. Users should be wary of unknown websites and unsolicited messages, especially those promising unrealistic returns or incentives. Moreover, make sure websites and platforms are real before entering personal information or confirming transactions to avoid phishing scams. 2FA and hardware wallets can also protect funds from unauthorized access.
Finally, crypto phishing scams are a major issue for the cryptocurrency community because they cause unsuspecting users to lose a lot of money. Users can avoid these bad activities by staying alert and taking security precautions. Industry players, regulators, and users must collaborate to combat this widespread threat and safeguard the cryptocurrency ecosystem.
