Analysts at Scam Sniffer have raised the alarm on an alarming trend in crypto-related fraud, with over $55 million siphoned off by scammers and a surge in phishing sites in January.

Unprecedented Surge in Phishing Attacks

On February 9th, the vigilant team at Scam Sniffer unveiled disturbing data showcasing a significant rise in phishing attempts. This uptick is linked to increased crypto community engagement after several airdrops in December. The stats are staggering: over 11,400 new phishing sites surfaced in January, meticulously mimicking reputable platforms such as Manta Network and OpenSea, leading to nearly $55 million in stolen cryptocurrency.

Top Networks Targeted

The Ethereum mainnet bore the brunt of these attacks, followed by a string of other networks including Arbitrum and BNB. Notably, the heaviest losses were felt by the top seven victims, who collectively saw $17 million vanish into the pockets of cyber thieves.

The Schemes and Tactics Used

Scammers have honed their craft, employing sophisticated methods to dupe unsuspecting users. A favoured tactic involved the misuse of the ERC-20 Permit function, tricking users into sending funds from their wallets. Additionally, the increaseAllowance function became a tool for criminals to drain token allowances from compromised smart contracts. The ruse extended to social platforms, with fake comments luring victims into these traps.

The Evolving Landscape of Crypto Crimes

Despite the grim figures from January, there’s a silver lining. The overall illicit crypto address activity saw a decline, with $24 billion in 2023 compared to $39.6 billion the previous year. The nature of assets involved in these crimes is also shifting, with stablecoins becoming the new preferred currency for illegal transactions.

Stay Informed, Stay Safe

As the crypto space evolves, so do the tactics of those looking to exploit it. Staying informed and vigilant is crucial in safeguarding your digital assets. Follow AI Crypto Pulse for the latest updates and expert tips on navigating the crypto landscape securely.