- Almost $300 million worth of crypto assets were stolen from more than 320,000 wallets, according to Scam Sniffer.
- A new form of malware, “wallet drainers,” is the cause of the majority of these phishing attacks.
- The Inferno Drainer scam alone accounts for about 27.5% of the entire amount of phishing theft.
With 2024 expected to be a bullish year, the number of scams and attempts and, if not prevented, the losses would be exceptional, too. But as much as it is the developers' responsibility to ensure that their protocol is technically sound, it also falls on the people to make sure that they remain alert towards any suspicious activity.
Crypto investors at blame this time
According to Scam Sniffer's 2023 report, phishing scams resulted in the loss of almost $300 million throughout the year. This theft impacted more than 320,000 wallets as they were all hit by a new type of malware known as "wallet drainers".
Phishing scam victims and funds
Per Scam Sniffer, this malware is deployed onto phishing websites in order to trick users into approving malicious transactions. This results in the scammers stealing their assets from the users' cryptocurrency wallets.
Throughout 2023, multiple wallet drainers popped up, with Monkey Drainer being the first to come into the spotlight. Although following their exposure, they announced their departure, having already stolen over $16 million.
The biggest hit, however, was conducted by Inferno Drainer, which managed to steal over $81 million from 134,000 victims in less than ten months. Their theft accounts for about 27% of the entire amount of money stolen over the course of the past 12 months.
List of wallet drainers active in 2023
Hacks and exploits tend to impact an entire community along with the project and developers at the same time, making it easy to react and shut down the malpractice. But with phishing scams, it is much more difficult to put an end to since the scammers are in direct communication with users who tend not to be technologically sound.
Hence, the need for awareness regarding such scams is paramount going forward.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.