In a recent instance of a highly successful phishing scam, an unwary user found themselves subjected to a substantial financial setback of several million dollars, all tied to Tether (USDT).
Data retrieved from Etherscan revealed a troubling discovery: a staggering $4.46 million worth of Tether (USDT) was illicitly transferred from an unsuspecting Kraken wallet holder. These unlawfully acquired funds were then directed into an account, the identity of which remains shrouded in mystery, with the cryptic identifier “ACa7.”
Another Triumph for the Phishers Details surrounding the precise modus operandi of this fraudulent activity remain elusive. Nevertheless, the reputable blockchain security firm, PeckShield, unreservedly flagged the destination address as belonging to the perpetrator.
Moreover, research conducted by Scam Sniffer revealed some crucial insights. It hinted that the embezzled assets had been redirected to an address associated with a counterfeit Coinone cryptocurrency mining exchange.
Upon inspecting a user-generated Dune Analytics dashboard, it became evident that a disturbing trend had emerged. This dashboard had been generously provided by a blockchain intelligence platform.
Phishing Scam Leads To Rake in Over $337 Million in USDT, Impacting Thousands
This breed of malevolent actions had resulted in scammers making off with a colossal sum exceeding $337 million worth of USDT. As a consequence, nearly 22,000 individuals were adversely impacted by these fraudulent activities.
The relentless proliferation of phishing schemes continues to wreak havoc in the digital landscape. These schemes have managed to deceive even prominent and tech-savvy entities on multiple occasions.
Notably, the Global Anti-Scam Organisation has duly noted that this form of fraudulent approval mining frequently employs tactics. These tactics are designed to deceive victims into unwittingly authorizing unrestricted withdrawals from their cryptocurrency holdings.
When a user establishes a self-custodial cryptocurrency wallet, they are bestowed with a ‘private key,’ safeguarded through encryption. Curiously, fraudsters do not necessitate knowledge of the user’s seed phrase.
The organization has clarified that when a victim unintentionally agrees to join the deceptive mining pool, they are essentially endorsing a request for a network fee in Ether. This fee typically falls within the range of $10 to $50.
Rising Threat: Phishing Scams in the World of Crypto
Indeed, mining scams exhibit a striking similarity to phishing attacks. These scams often pose as ‘mining’ or ‘liquidity pools.’ However, their true intention is to deceive individuals into granting unrestricted access to their cryptocurrency holdings.
Additionally, these scams frequently come with an ongoing “customer service” chat that consistently provides deceptive explanations.
Earlier this week, NONE, a leading suite of trading tools for cryptocurrencies and NFTs, made the difficult announcement. They reluctantly disclosed the cessation of their operations, citing several reasons for the decision.
One of these reasons was an exploit in which a deployer suffered substantial losses, totaling 41.52 ETH in addition to NONE tokens.
Furthermore, on September 6, an anonymous crypto magnate faced a significant financial setback. They incurred losses exceeding $24 million in liquid-staked Ethereum.
Upon conducting a comprehensive investigation, it was determined that the individual had inadvertently given scammers permission. This occurred when they endorsed “increase allowance” transactions.