Fraudsters create fictitious crypto addresses with similar symbols, disguising them as real ones. The victim, by mistakenly transferring funds, loses most of his crypto assets.
Millions in losses
Theft of $69.3 million
CertiK discovered the recent theft of 1155 WBTC (equivalent to 69.3 million US dollars) from a wallet on Coinbase. The attackers faked a transfer of 0.05 ETH, inducing the victim to send funds to a fake address. The stolen assets are now in the new wallet.
Exchange to Ethereum
According to Peckshield, the criminals converted the stolen bitcoins into 23,000 ETH (about $71 million at current rates) and transferred them to another address.
Security recommendations
Trezor specialists advise making test transfers before sending large amounts and carefully check the recipient's address to avoid such attacks.
Scope of Crypto Fraud
According to an FBI report, losses from cryptocurrency fraud amounted to $3.94 billion in 2023, which exceeds three-quarters of all losses from investment scams in 2023. that year. In addition, the so-called "pig slaughter" schemes defrauded investors of $75 million between 2020 and 2024.
Glossary
- CertiK is a blockchain security company.
- Coinbase is one of the largest cryptocurrency exchanges.
- WBTC is an Ethereum-traded token backed by Bitcoin.
- Ethereum (ETH) is the second cryptocurrency by capitalization after Bitcoin.
- FBI - US Federal Bureau of Investigation.
Links
- #CertiKInsight
- https://t.co/m2xpJW0QIZ
- pic.twitter.com/PWFhEsEN2G
- twitter.com/CertiKAlert/status/1786378165050306774
- #PeckShieldAlert
- #Phishing
- $WBTC
- $ETH
- pic.twitter.com/dr7eTYQkAX
- twitter.com/PeckShieldAlert/status/1786447590042779855
- trezor.io/support/a/address-poisoning-attacks
- ic3.gov/Media/PDF/AnnualReport/2023_IC3Report.pdf
- markets.businessinsider.com/news/currencies/crypto-crime-pig-butchering-scam-...
Answers to questions
What is “address poisoning” and how does it happen?
What recent incidents have involved address poisoning?
How can you protect yourself from address poisoning scams?
How much damage does crypto fraud cause in general?
What other type of fraud is mentioned in the text?
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Discussion of the topic – Crypto scam victim lost 97% of his assets on Coinbase
A popular type of “poisoned address” scam resulted in the loss of $69.3 million, or about 97% of the victim’s assets on Coinbase. Blockchain security firm CertiK discovered a recent transfer to a fake address.
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SamuelSmith
These crypto cameras are becoming more and more sophisticated. Fraudsters manage to deceive even experienced investors. 😱 How can you protect yourself from such attacks with “poisoned addresses”?
AnnaBecker
I agree, this is a serious problem. The most important thing is to always carefully check the addresses of the wallets to which funds are sent. 🔍 Even a small mistake can lead to the loss of all assets.
FrancescoRossi
Always make test transfers of small amounts before sending large amounts to a new address. 💰 This way you can verify its authenticity.
JuanGarcia
Don't trust strangers online who are trying to lure you into "investment" projects. 🚫 These are often scammers who use “pig slaughter” tactics.
OldGrouchGrumpy
All these cryptocurrencies are just a scam! 😡 I prefer to keep my money in a reliable bank rather than believe in these dubious technologies.
ZofiaNowak
Yes, old @OldGrouchGrumpy is right, cryptocurrencies are risky. But they also open up new possibilities. 🌍 You just need to be careful and attentive.
MariaSmirnova
Recently I almost became a victim of such a scam. 😰 The scammer created a fake account and convinced me to invest in a supposedly promising project. Fortunately, I suspected something was wrong in time.
FrancescoRossi
Well done @MariaSmirnova for being vigilant! 👏 Stories like this should serve as a warning to all of us. Don’t blindly trust promises of quick riches in the crypto sphere.