Published on augustus 22, 2024, 12:29 am
Image source: Fox News
```json [ "TLDR: Blockchain security experts warn against signing unknown transactions due to rising phishing scams in cryptocurrency. A holder lost $55 million by signing an unverified transaction, leading to a theft of stablecoins. Phishing attacks are on the rise, tricking users into malicious actions. In the first half of 2024, phishing schemes cost nearly $500 million in crypto losses. Security firms emphasize the need for stronger security measures like multifactor authentication. Recent cases in Australia show digital asset wallets targeted by phishing. Vigilance and verification are crucial in facing evolving threats like phishing scams in the crypto world." ] ```
Blockchain security experts are raising a red flag against signing unknown transactions, emphasizing the escalating threat of phishing scams in the world of cryptocurrency.
In a recent incident, a crypto holder lost a staggering $55 million in cryptocurrency after signing an unverified transaction, falling prey to malicious actors who executed a successful phishing attack to abscond with the individual’s stablecoins. The unfortunate event occurred on August 20 when the crypto wallet owner authorized a transaction that altered the ownership of 55.47 million Dai (DAI) within the Maker decentralized finance (DeFi) protocol. Subsequently, due to this signed transaction, a phishing address seized control of the wallet’s stablecoins.
Despite realizing the error, the crypto holder attempted to transfer the funds to a new address but was thwarted by the irreversible owner change that had transpired. Lookonchain, a blockchain analytics firm, brought attention to the fact that the attackers swiftly reassigned ownership to a newly generated address and managed to withdraw digital assets from the platform. The attackers further exchanged 27.5 million DAI for 10,625 Ether (ETH).
It is imperative for users to exercise caution by refraining from endorsing unfamiliar transactions and diligently verifying any action necessitating confirmation via signature. Phishing attacks craftily lure victims into executing harmful activities, such as installing counterfeit software or signing malevolent transactions aimed at looting cryptocurrency assets. These unscrupulous individuals aim to dupe victims into divulging private keys or personal data or transferring access to wallets.
During the initial half of 2024 alone, phishing schemes resulted in losses totaling nearly half a billion dollars within the crypto realm. CertiK, a blockchain security firm, disclosed that as of July 3, approximately $498 million had been siphoned off through phishing attacks in the cryptocurrency space. Ronghu Gu, co-founder of CertiK, stressed the necessity for bolstered security measures like multifactor authentication methods including two-factor authentication and security keys.
Recent reports indicate that Australian-owned digital asset wallets have fallen victim to phishing scams impacting around 2,000 entities. The Australian Federal Police initiated investigations into these losses following revelations from Chainalysis indicating exploitation through “approval phishing” tactics visible among said wallets.
Detective Superintendent Tim Stainton from AFP acknowledged that intelligence gathered during operations shed light on novel strategies adopted by cybercriminals. In response to these threats, details surfaced on August 19 revealing that over 5,530 fake investment platforms alongside 1,065 phishing links and 615 cryptocurrency investment scams were dismantled by the Australian Securities and Investments Commission since July 2023.
As incidents like these underscore the critical importance of vigilance and meticulous verification processes within the cryptocurrency domain amidst evolving threats such as phishing scams gaining prominence in financial cybercrime scenarios.
Original article posted by Fox News
