Crypto Phishing Scams Reigned Supreme In 2023

Table of Contents

• Wallet Drainers Make Headlines
• Noteworthy Culprits Of Wallet Draining 
• Methods of Infiltration
• Scam Sniffer's Efforts

A recent report by Scam Sniffer indicates that phishing activities have consistently gained momentum across 2023, draining almost $300 million from 320,000 users. 

Wallet Drainers Make Headlines

According to a recent report by Web3 security company Scam Sniffer, phishing scammers have been escalating their tactics throughout 2023. The findings reveal a consistent enhancement in sophistication, allowing scammers to bypass security measures and target the crypto wallets of more than 320,000 users.

A significant player in this phenomenon is the emergence of Wallet Drainers, a type of malware linked to cryptocurrency. These malicious software are deployed on phishing websites, deceiving users into signing harmful transactions and ultimately pilfering assets from their cryptocurrency wallets. The impact has been substantial, leading to significant financial losses for over 324,000 victims in 2023.

Noteworthy Culprits Of Wallet Draining 

Scam Sniffer's report highlights that Wallet Drainers have collectively stolen $295 million from victims in 2023. Notable culprits include Inferno Drainer ($81 million), MS Drainer ($59 million), Angel Drainer ($20 million), and Monkey Drainer ($16 million). Inferno Drainer, the leader among these scammers, orchestrated the theft of $81 million from 134,000 users over nine months before ceasing operations in November 2023.

Analyzing the trends, it's clear that phishing activities have been on a continuous upswing. What's more concerning is that as one Drainer exits the scene, a new one swiftly takes its place. Angel Drainer, for instance, has stepped in as the successor after Inferno's exit.

Methods of Infiltration

Phishing sites attract traffic to commit scams through various methods, including hacking attacks on official project Discord and Twitter accounts, attacks on official project frontends or libraries, organic traffic through airdrops of NFTs or tokens, expired Discord links being taken over, spam mentions, and comments on Twitter, and paid traffic through Google search ads and Twitter ads. The chosen method depends on the content of the victim's wallet.

Scam Sniffer's Efforts

Scam Sniffer claims to have scanned nearly 12 million URLs, uncovering almost 145,000 malicious ones in just 2023. Almost 100,000 malicious domains have been mentioned in their blacklist, which is entirely open-source to allow transparency in the industry. 

The platform has played a crucial role in reporting on multiple well-known Wallet Drainers, consistently sharing information about significant theft cases on social media platforms to raise awareness and enhance the public's understanding of phishing threats.

The year 2023 witnessed a surge in crypto phishing scams, marked by the relentless evolution of tactics and the rise of Wallet Drainers. As the threat landscape continues to grow, heightened vigilance and education become imperative to safeguard users from falling victim to these malicious schemes.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.