The growing sophistication of attackers and the lack of pre-transaction security measures are some of the main reasons for the increase, the CEO told Cointelegraph, adding:“More users and institutions are leveraging automated tools for crypto transactions, some of which may not have built-in verification mechanisms to detect poisoned addresses.”While the higher transaction volume due to the crypto bull market is a contributing factor, pre-transaction verification methods may stop a significant amount of phishing attacks, said Lavid, adding:“Unlike traditional fraud detection, many wallets and platforms lack real-time pre-transaction screening that could flag suspicious addresses before funds are sent.”Related: August sees 215% rise in crypto phishing, $55M lost in single attackAddress poisoning scams have previously cost investors tens of millions.
Address poisoning, or wallet poisoning scams, involves tricking victims into sending their digital assets to fraudulent addresses belonging to scammers. Pig butchering schemes on Ethereum have cost the crypto industry over $1.2 million worth of funds in the nearly three weeks since the beginning of the month, wrote onchain security firm Cyvers in a March 19 X post:“Attackers send small transactions to victims, mimicking their frequently used wallet addresses.
When users copy-paste an address from their transaction history, they might accidentally send funds to the scammer instead.”Source: Cyvers AlertsAddress poisoning scams have been growing, since the beginning of the year, costing the industry over $1.8 million in February, according to Deddy Lavid, co-founder and CEO of Cyvers.
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Author / Journalist: Cointelegraph by Zoltan Vardai
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