Phishing Scams Dominate Crypto Fraud with $35 Million Lost in Latest Attack

Crypto scams have become a serious concern, with incidents increasing rapidly. Despite the enhanced security and authentication methods, many scams still occur, proving that scammers are becoming more sophisticated.

Scammers stole $127 million through phishing scams in the year's third quarter. About $46 million was lost to crypto scams in September alone, and just a few hours ago,a scammer stole $35 million using a phishing signature link.

$35 Million Stolen as Phishing Scams Take Center Stage in the Crypto Market

Earlier this year, Pig-Butchering scams were the most common type of fraud. These scams often involve tricking victims into investing large amounts of money.

As a result, the Commodity Futures Trading Commission (CFTC) has worked with other organizations to combat these increasing scams.

However, phishing scams are becoming more prevalent now. Phishing involves tricking people into revealing sensitive information, like passwords or credit card numbers.

In a recent cyberattack, a scammer stole $35 million worth of FwDETH tokens, making it one of the largest scams in the crypto market recently.

The incident happened when the victim clicked on a harmful permit" signature link. By doing this, the victim unknowingly gave the scammer access to their funds. Therefore, the scammers moved millions of dollars within seconds.

So far, investigations revealed that the hacker used the address 0x0605edee6a8b8b553cae09abe83b2ebeb75516ec to offload the stolen funds.

The victim's wallet address, 0xeab23cfe3776adf45e2e3dc56bcf739f6e0a393, likely belongs to Continue Fund, a venture capital firm that invests in various crypto projects. Unfortunately, this time, it became a victim of crypto scam.

victim:
0xeab23c1e3776fad145e2e3dc56bcf739f6e0a393

scammer:
0x0605edee6a8b8b553cae09abe83b2ebeb75516echttps://t.co/3q1FPBx8Jc

- Scam Sniffer | Web3 Anti-Scam (@realScamSniffer) October 11, 2024

In this case, the hackers may have used a temporary token spender address created with the CREATE2 function. This method makes it harder for everyday users and investors to spot potential scams.

This news gained attention when popular analytics platforms like Lookonchain posted it on X. They revealed that one phishing signature link led to the loss of 14,079 fwDETH tokens.

Crazy!

Someone(probably related to @ContinueFund) lost 15,079 fwDETH(worth $36M) by signing a "permit" phishing signature 6 hours ago!

To avoid being phished, please do not click on any unknown links and do not sign any unknown signatures.
Always double-check when signing... pic.twitter.com/dTG4Uzsf43

- Lookonchain (@lookonchain) October 11, 2024

However, the hacker did not stop there. The Crypto Sleuth reported that the scammer had already sold all the stolen fwDETH tokens, causing significant liquidity issues and price drops in the market.

Phishing Scams Continue to Plague Crypto Users with Major Financial Losses

Another crypto user, Rofett.eth, explained the ripple effect surrounding the token. After the sudden sell-off of fwDETH, many investors felt the impact.

As a result of the recent theft, businesses that rely on fwDETH experienced significant disruptions. This includes decentralized finance (DeFi) protocols like PAC Finance and Orbit Finance. However, these platforms have not yet made any official announcements about the situation.

Another victim lost $32 million worth of spWETH due to a similar permit phishing attack. The crypto market is filled with such incidents that disturb many users.

Scam Sniffer, a Web3 security firm, reported that phishing attacks have affected 10,800 victims. The number of victims is exceptionally high, with permit phishing signatures. For instance, a victim lost $432.43 million after having 12,083 spWETH tokens stolen.

Phishing scams are very concerning because scammers trick people into connecting their crypto wallets to fake websites and services.

Once a victim's account is linked, the scammers can withdraw all their funds without authentication. These phishing attempts can be hard to spot, making them more likely to succeed.

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