$47M Lost to Crypto Phishing Scams in February: Scam Sniffer

Mar. 11, 2024
$47M Lost to Crypto Phishing Scams in February: Scam Sniffer

According to crypto sleuth Scam Sniffer’s February Phishing Report, over 57,000 individuals fell victim to crypto phishing scams, losing a staggering $46.8 million. Security firm revealed that impersonated X (formerly Twitter) accounts lured most victims to phishing websites through deceptive comments.

Examples of impersonating X accounts
Examples of impersonating X accounts. Source: Scam Sniffer

According to a chart provided, over $6 million was stolen on Feb. 15. The second-highest theft occurred on Feb. 28, resulting in a loss of around $3 million. The chart showed that all 29 days of the month witnessed crypto scams and thefts. The number of victims losing over $1 million dropped 75% compared to January.

Crypto attacks
Source: Scam Sniffer

Scam Sniffer found that Ethereum mainnet accounted for 78% of the thefts. ERC-20 tokens were the main assets taken, making up 86% of all stolen assets. Moreover, the security firm emphasized that most thefts were caused by signing malicious phishing signatures like Permit, IncreaseAllowance, and Uniswap Permit 2. Phishing attacks pose a significant threat, as just one malicious signature could lead to losing assets stored in a wallet. 

In the last week of February, business intelligence firm MicroStrategy’s X account was hacked, resulting in the theft of around $440,000 in crypto. Additionally, Blockchain Capital, Rocket Pool, Compound Finance, and even Vitalik Buterin have seen their X accounts hacked in recent months by crypto phishers.

Crypto Hackers Use Different Methods to Steal

The Better Business Bureau’s (BBB) yearly report on 2023’s biggest scams, drawn from 67,000 scam reports, reveals scammers’ inventive methods of deceiving investors. Last year, around 80% of Americans fell victim to crypto scams, experiencing financial losses of a median amount of $3,800. Scammers reach out to people through social media, video games, or texts, bragging about making money through crypto investments. Once the victim replies, the conversation quickly turns into a request for money, according to the BBB.

Individuals lost $57.7 million in January. In this year’s first two months, about 97,000 users succumbed to phishing attacks, leading to substantial losses totaling $104 million. According to Scam Sniffer’s 2023 report, 324000 users fell victim to crypto phishing scams and lost nearly $300 million. Moreover, an FBI report highlighted millennials (born between 1981 and 1996) as the most susceptible group to investment fraud.

Syed Ali Haider

Researcher & Editor
Ali Haider is a Blockchain enthusiast and writer passionate about enhancing the acceptance, adoption, and integration of Blockchain technology worldwide. He has also advocated for digital freedom and cybersecurity for many years.