In March, phishing scams targeting Ethereum layer 2 Base skyrocketed, with stolen funds increasing 18-fold compared to January, as reported by Scam Sniffer. Base alone lost approximately $3.35 million, a 334% month-over-month jump from February. The rise in Base phishing scams coincides with a recent memecoin craze on the blockchain, which has seen its total value locked increase by 370% so far in 2024.
Surge in Phishing Scams on Ethereum Layer 2 Network Base Alarms Crypto Community
A recent report by blockchain anti-scam platform Scam Sniffer has revealed a startling 1,880% increase in cryptocurrency funds stolen through phishing scams on Ethereum layer 2 network Base in March compared to January. This alarming trend has raised concerns about the security of the network and the vulnerability of users to malicious actors.
According to the data compiled by Dune Analytics, Base lost a staggering $3.35 million to phishing scammers in March alone, marking a 334% month-over-month increase from February's $773,900 and a massive spike from January's figure of $169,000. The surge in phishing scams on Base mirrors a similar trend observed on Binance's BNB Smart Chain, with approximately $71.5 million lost to scammers across all chains in March.
Scam Sniffer has identified phishing links from fake accounts as a primary tactic used by attackers. In March, the platform detected over 1,500 such incidents, highlighting the sophisticated methods employed by scammers. The rise in Base phishing scams coincides with a surge in the popularity of memecoins on the Coinbase-backed chain, which has pushed Base's total value locked above $3.2 billion.
While phishing scams have witnessed an alarming increase, data from blockchain security firm PeckShield indicates a decrease in crypto hack thefts. In March, hack-related losses fell 48% to $187.2 million, with almost all recoveries stemming from the $97 million Munchibles exploit.
Despite the decline in hacks, several notable incidents occurred in March. Curio's MakerDAO-based smart contract lost $40 million, while Prisma Finance fell victim to an $11.6 million hack. The firm is currently negotiating with the hacker on-chain to recover the stolen funds.
The rise in phishing scams on Base and the recent hack incidents underscore the importance of robust security measures in the cryptocurrency ecosystem. Users should exercise caution when interacting with unknown or suspicious links, and exchanges and custodians must implement strong safeguards to protect their customers' assets.
Industry experts are calling for increased collaboration between law enforcement agencies, security researchers, and blockchain platforms to combat phishing scams and hacking attempts. The formation of white hat teams, such as the 'SEAL 911' team, which specializes in real-time mitigation of crypto hacks, is a step in the right direction towards enhancing the security of the cryptocurrency ecosystem.
