Phishing Scams Caused $9.38M in Losses in November, Affecting Over 9,200 People: ScamSniffer

The largest single loss was $661,000 in stETH. This happened in minutes, showing how fast and dangerous these scams can be.

Phishing scams caused crypto users to lose $9.38 million in November, according to ScamSniffer. This marks a significant decrease compared to October’s losses of over $20.2 million. However, despite the drop in total losses, the number of victims affected remains concerning.

Major Crypto Losses Incurred Last Month

Several large losses occurred due to phishing scams in November:

The largest single loss was $661,000 in stETH, which was stolen in a matter of minutes.

Another substantial loss of $409,000 in WBTC was reported on the Arbitrum network.

Scammers also managed to steal $344,000 in FET through Ethereum’s Uniswap platform.

Additionally, a direct transfer on the Ethereum network resulted in the loss of $220,000 in USDT.

Most of these major losses were incurred through malicious signature requests. These scams typically trick users into approving harmful transactions, which allows scammers to quickly siphon off the funds. According to ScamSniffer, this method serves as the “deadliest weapon” used by attackers.

Total Losses Decreased, but Risks Persist

The total losses reported in November are significantly lower than the staggering $20.2 million lost in October. September also saw even higher losses of $45.8 million. However, despite this drop in total losses, the number of victims affected by phishing scams is still alarmingly high.

ScamSniffer also observed a shift in phishing techniques. While the Inferno Drainer scam, which plagued the Arbitrum network for several months, has faded, a new attack method called Angel Drainer is now on the rise. This highlights how scammers are continually adapting their tactics to target crypto users.

A Broader Perspective on Phishing Scams

Phishing attacks have become a major problem in the crypto space. According to CertiK, a blockchain security firm, phishing scams resulted in the loss of $343.1 million in Q3 2023. These losses occurred across 65 separate incidents. During that period, CertiK identified phishing as the most damaging type of attack.

Most victims are lured into these scams through fake accounts on X (formerly Twitter). These accounts typically impersonate well-known figures or crypto projects and direct users to phishing websites. Another common method involves Google ads, where scammers use fake advertisements to trick users into clicking on malicious links. Once on these phishing sites, victims are typically prompted to connect their wallets, which gives the attackers access to their funds.

Understanding Why These Scams Work

The effectiveness of phishing scams largely stems from their ability to appear genuine. Scammers meticulously craft fake websites, advertisements, and emails to deceive users. These traps are designed to gain the trust of victims. Furthermore, many scams utilize malicious signature requests. Victims, thinking they are signing something safe, are actually approving a scam transaction.

Even experienced crypto users can fall prey to these tactics. Scammers are known to modify their techniques to evade detection. As a result, phishing scams are among the most challenging threats to combat in the crypto space.

Tips for Staying Safe from Phishing

In light of these scams, crypto users are urged to exercise caution. Always double-check any links before clicking on them. Be wary of suspicious advertisements or emails and never blindly approve a signature without examining the details thoroughly. A single mistake could lead to a substantial loss.

Experts also recommend using tools to verify links and transactions. Additionally, robust security software can assist in detecting scams. Ultimately, staying alert and vigilant is the best way to safeguard your crypto funds.