Cryptocurrency User Loses $4.46 Million in Sophisticated Phishing Scam
Summary:
A cryptocurrency user has reportedly lost $4.46 million in a sophisticated phishing scam. The amount was transferred from a Kraken crypto exchange wallet to an account identified as fraudulent by security firm PeckShield. Scam-tracking platform Scam Sniffer linked the fraudulent account to a phony Coinone crypto-mining exchange. Deception tactics involved in such scams generally trick victims into authorizing unlimited withdrawals from their wallets.
A cryptocurrency user has reportedly lost a staggering $4.46 million to a phishing attack. Etherscan data reveals that an amount of $4.46 million in Tether (USDT) was transferred out of a Kraken crypto exchange wallet and sent to an address ending with "ACa7". Blockchain security firm PeckShield has tagged this address as the property of a phishing scam artist.
Scam Sniffer, another platform concentrating on blockchain scams, hinted on Sept. 20 that the funds were shifted to an address associated with a fraudulent Coinone crypto mining exchange.
A link from Scam Sniffer led to a Dune Analytics dashboard, made by a user, indicating that similar scams have succeeded in swindling approximately $337.1 million USDT, affecting nearly 21,953 individuals.
The Global Anti-Scam Organization points out that these approval mining scams usually deceive victims into authorizing unlimited withdrawal from their cryptocurrency wallets.
“It is not necessary for the fraudsters to acquire your seed phrase”, GASO clarified, further explaining that when a victim chooses to participate in the deceptive mining pool, they authorize a $10 to $50 network fee in Ether (ETH).
This might appear reasonable, but GASO warns that it's a mere ploy to secure the victim's digitally signed authorization, granting limitless access to the wallet using the USDT smart contract.
Published At
9/21/2023 6:11:16 AM
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