Ethereum Layer-2 Base Rocked by Surge in Phishing Thefts

Phishing thefts on Ethereum layer-2 chain Base have skyrocketed, with a 1,900% surge since January and $3.35 million stolen in March alone. BNB Chain has also seen an uptick in phishing scams, with the crypto industry facing $71.5 million in losses in March. Fake social media accounts sharing phishing links remain a primary tactic for scammers, and the increase in phishing on Base coincides with a memecoin craze on the chain. Despite the rise in phishing scams, crypto hack thefts have decreased by 48% to $187.2 million in March, with notable incidents including the Curio smart contract exploit and the Prisma Finance hack.

Surge in Phishing Thefts on Ethereum Layer-2 Chain Base Raises Concerns

Blockchain security firms are raising the alarm over a sharp increase in phishing scams targeting users of the Ethereum layer-2 scaling solution, Base. Data from Scam Sniffer, a blockchain anti-scam platform, reveals that funds stolen through phishing attacks on Base have skyrocketed by nearly 1,900% since the beginning of 2024.

In March alone, approximately $3.35 million was lost to phishing scams on Base, marking a 334% increase from the previous month and a significant jump from the $169,000 stolen in January. This surge is part of a broader uptick in phishing activity across the crypto industry, with overall losses reaching $71.5 million in March, surpassing figures from February.

The surge in phishing scams on Base coincides with a spike in memecoin trading on the Coinbase-backed platform. The total value of assets locked on Base has increased by 370% in 2024, reaching over $3.2 billion, fueled by the popularity of memecoins.

Scam Sniffer has identified fake social media accounts sharing phishing links as a primary tactic used by scammers. The platform detected over 1,500 such incidents in March, highlighting the need for users to be vigilant in verifying the authenticity of online accounts.

In contrast to the rise in phishing scams, crypto hack thefts have witnessed a decline. Blockchain security firm PeckShield reports that such thefts have fallen by 48% to $187.2 million in March. This decrease is partly attributed to the recovery of significant amounts of stolen funds, including the $98.8 million recovered from the Munchibles exploit.

Notable incidents in March include the loss of $40 million from Curio's MakerDAO-based smart contract and an $11.6 million hack targeting Prisma Finance. Negotiations are ongoing with the perpetrator of the Prisma Finance hack for the return of the stolen funds.

Experts emphasize the importance of implementing robust security measures to mitigate the risks associated with phishing scams and hacks. Users are advised to exercise caution when clicking on links or interacting with online accounts, particularly on social media. Additionally, they should consider using hardware wallets and enabling two-factor authentication to enhance account security.