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Scammy February: Over $47 Million Defrauded by Crypto Phishers on X

Tens of thousands of users suffered from the surge in crypto phishing scams in February

In February, the digital finance realm was hit hard by a wave of crypto phishing scams, culminating in a staggering loss of $46.8 million. Scam Sniffer's latest report highlights a troubling trend: over 57,000 individuals fell prey to these scams, largely due to the deceptive tactics of impersonators on social media platform X. These impersonators craftily lure victims to phishing sites through comments that mimic legitimate accounts, exploiting the trust placed in these online personas.

 

The Ethereum mainnet emerged as a major target, with 78% of the total thefts, and ERC-20 tokens, accounting for 86% of the stolen assets. The majority of these thefts were facilitated by victims unknowingly authorizing phishing transactions. This unsettling escalation in crypto phishing underscores the critical need for heightened vigilance and sophisticated security measures among digital currency enthusiasts. As scammers evolve their methods, the crypto community must equally advance its defenses to safeguard its assets.

The techniques behind the thefts: how scammers are advancing

The sophistication of crypto phishing scams has reached new heights, with scammers employing advanced techniques to exploit the digital currency ecosystem. A significant part of criminal success hinges on the exploitation of the Ethereum mainnet, where account abstraction wallets have become a tool for unauthorized token approvals.

 

These wallets, designed to enhance Ethereum's functionality and smart contract compatibility, are now being manipulated to deceive users into signing transactions that drain their assets. The report identified that permissions such as Permit, IncreaseAllowance, and Uniswap Permit2 are among the most commonly abused. This trend not only highlights the innovative tactics of crypto phishers but also underscores the urgent need for users to be more discerning and cautious.