$47M Stolen: X Impersonators Blamed for Crypto Phishing

In February, there was a significant increase in crypto phishing scams on social media platform X, leading to over 57,000 individuals falling victim to these fraudulent schemes. According to Scam Sniffer’s latest report on crypto phishing, a staggering $46.8 million was lost last month. The report highlighted that the majority of victims were enticed to phishing websites through comments made by fake Twitter accounts impersonating legitimate users.

Scam Sniffer’s findings revealed that the Ethereum mainnet was responsible for 78% of the total amount stolen, with ERC-20 tokens being the primary assets targeted, accounting for 86% of all stolen assets. The report further indicated that most thefts involving Ethereum tokens occurred due to users unknowingly signing phishing signatures and transaction approvals, such as Permit, IncreaseAllowance, and Uniswap Permit2. Wallet drainers have begun utilizing account abstraction wallets as token approval spenders, taking advantage of the increased functionality and smart contract compatibility offered by these wallets.

Despite an increase in phishing victims compared to January, the total amount stolen in February was lower. There was a significant decline in the number of victims who lost over $1 million. Scammers typically target social media accounts belonging to high-profile individuals and often respond to posts using fake accounts that mimic the genuine ones. They may even hack into an account to share phishing links. For instance, in February, the X account of MicroStrategy was hacked, resulting in the theft of approximately $440,000 worth of cryptocurrency. Several other accounts, including those of Compound Finance, Rocket Pool, Blockchain Capital, and even Vitalik Buterin, have also been compromised by crypto phishers in recent months.

In December, reported that scammers had increasingly turned to “approval phishing” methods to steal funds. This tactic persuades victims to sign transactions that grant scammers access to their wallets, enabling them to drain the funds contained within. A report from the United States Federal Bureau of Investigation highlighted that Millennials are particularly vulnerable to investment fraud, making them the most likely group to fall victim to such scams.