Crypto Scam: Hackers Drain $55 Mln Targeting Dymension (DYM), OpenSea, & Others

Cryptocurrency investors are facing a new wave of threats as scammers target popular projects like Dymension (DYM), OpenSea, and more. According to a recent report by Web3 security firm Scam Sniffer, phishing attacks have surged, resulting in the loss of over $55 million in January alone. These crypto scams, often tied to airdrops and project events, highlight the need for heightened vigilance within the crypto community.

Crypto Scam: Hackers Drain $55 Million In January

The Web3 security firm Scam Sniffer has sounded the alarm on a concerning trend in the cryptocurrency space: a surge in phishing attacks targeting projects across various Ethereum Virtual Machine (EVM) chains. Notably, in January 2024, over $55 million was siphoned away through deceptive tactics, with the top 7 victims losing a staggering $17 million.

These scams, which often coincide with airdrops and other project activities, have affected approximately 40,000 individuals, underscoring the pervasive nature of the threat.

Meanwhile, the report suggests that scammers have employed sophisticated tactics to deceive unsuspecting users, creating more than 11,000 phishing sites. Notably, these sites were used to impersonate well-known projects like Dymension (DYM), OpenSea, Manta Network, and others.

In addition, many of these fraudulent schemes rely on exploiting vulnerabilities in ERC20 Permit and increaseAllowance signatures, enticing victims to unknowingly authorize malicious transactions. The prevalence of such crypto scams highlights the importance of exercising caution, especially during periods of heightened activity within the crypto community.

Also Read: Binance Leads Fight Against Crypto Crime with INTERPOL Partnership

A Detailed Look Into The Fraudulent Schemes

Delving deeper into the mechanics of these phishing attacks, Scam Sniffer’s detailed report reveals a troubling pattern. The majority of thefts occurred on the Ethereum mainnet, with other chains like Arbitrum, BNB, Optimism, and Polygon also experiencing significant losses.

Notably, as mentioned earlier, phishing websites have become the primary vehicle for scammers to defraud unsuspecting users.

Meanwhile, these malicious websites, often indistinguishable from legitimate platforms, impersonate reputable projects and employ deceptive tactics to lure victims into divulging sensitive information or authorizing fraudulent transactions. The use of Create2 to generate temporary addresses further complicates detection efforts, allowing fraudsters to cover their tracks and evade detection.

As the crypto landscape continues to evolve, staying informed and exercising caution remain paramount in safeguarding against such threats.

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