Crypto Phishing Losses Drop 56% To $10.2M, But New Threats Rise

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Crypto Phishing Losses Drop 56% To $10.2M, But New Threats Rise

In January, Phishing scams in the crypto space went down significantly with a loss of 56 percent in total losses from December to $10.2 million, ScamSniffer, the blockchain security firm, said. Even as the decline takes place, new threats are still a real concern for investors and tell us that scammers are changing the way they deceive people.

ScamSniffer, which reported that 9,200 victims were taken in by phishing attacks in the past month in a Feb. 3 report shared on X. Transaction simulation spoofing was a key tactic, used to trick users into signing fraudulent transactions and resulting in huge losses. According to this technique, it has been working very well, up to an unlucky victim losing 143.45 Ethereum, the equivalent of $461,000, in a single day. 

Scammers Exploit User Confusion

These scams become more sophisticated, but users become more confused as to what is a real transaction and what is a fake. Malware attacks are also escalating. In the depths of winter, the night is long and cold, but they see something else in its darkness. The scammers in these scams often trick users into believing they are working with security tools when, in fact, they are handing their credentials over to other people. 

Also, Solana users are increasingly becoming targets for scammers who deploy fake Phantom wallet pop-ups to steal seed phrases and critical credentials that give you full control of your digital assets. With these methods, hackers can become instant victims of funds which can be drained out of wallets within minutes.

Not only is the creation of fake accounts increasing at an alarming rate of double the 300 that were reported in November; but those ‘accounts’ are proliferating. Some actually hijacked the X accounts of Yahoo News UK, Lenovo India and other main X accounts to promote those bogus tokens. These attacks are proof of the criminals using trusted platforms to lure in, in investors that will invest in worthless digital assets.

Additional advice from crypto investigator ZachXBT is for any of the users to revoke the app permission on non-custodial wallets if you think you are interacting with a malicious website. Leaving users susceptible to unauthorized withdrawals and there would be no failure to do so. ScamSniffer also advises the victims to seek professional recovery services, but at the same time warns against ‘recovery experts’,  mostly scammers, who want to steal another money through this crime.

The number of phishing losses is going down, but the emergence of new threats is growing at a rapid pace, so the crypto users must stay sober. In light of this, investors are encouraged to stay informed, ensure the security tools are authentic and be cautious when using digital assets online.

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