November Crypto Scams Swipe $9M from 9.2K Victims: Report

Highlights:

• Crypto investors forfeited over $9 million through crypto scams in November.
• The number of stolen digital assets recorded in November represented significant declines from past months.
• The spiking number of scam victims remained a source of considerable concern.

In a December 3 tweet, a renowned crypto scam on-chain tracker, with the pseudonym Scam Sniffer, presented a comprehensive report detailing statistics of successful scam attempts in November. According to the on-chain investigational outlet, about 9,208 crypto users forfeited roughly $9.38 million to sophisticated scam schemes.

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The X post noted that the most significant November crypto hacks saw a victim forfeit about $661,000 in staked Ethereum (sETH). Per Scam Sniffer, the hacker stole the tokens within minutes via the Ethereum network. It added that the victim ignorantly aided the successful threat by authorizing the malicious actor’s request to steal the digital assets.

🧵 [1/7] 🚨 ScamSniffer November Phishing Report

$9,380,000 STOLEN
9,208 VICTIMS

November saw one victim lose $661K in stETH within minutes – and that's just the tip of the iceberg.

Let's dive into the dark side of Web3… 🧵 pic.twitter.com/HDyBGh5tPj

— Scam Sniffer | Web3 Anti-Scam (@realScamSniffer) December 3, 2024

Aside from the above crypto hack, several other high-profile scams occurred in November. One involved $409,000 in Wrapped Bitcoin (WBTC) via the Arbitrum protocol. Another successful hack corrupted the Ethereum Uniswap network, resulting in approximately $344,000 worth of Artificial Superintelligence Alliance (FET) tokens in forfeited assets. Like the over $600K stolen sETTH, victims of these two scams unknowingly granted permissions to aid the hacks.

While most successful malicious attacks in November seem to involve victims’ authorization, the on-chain tracker spotlighted another massive theft, entailing direct transfer. Notedly, a victim forfeited $220,000 in USDT via a compromised Ethereum chain through the method. “Pattern? Malicious signatures remain the deadliest weapon,” Scam Sniffer added.

November Records a Drastic Decrement in Stolen Funds

In the other aspect of its trendy report, the crypto hacks tracker revealed that the losses recorded in November represented a significant 53% reduction from the $20.2 million in October. Additionally, the published document revealed that September saw crypto investors forfeit $45.8 million.

While the statistics above seem to suggest that there has been a considerable drop in the amount of stolen funds over the past three months, Scam Sniffer raised concerns about the number of victims. “Losses are down, but the victim count remains high,” the on-chain tracker revealed.

Among the several scam schemes fraudsters seem to manipulate unsuspecting users, Scam Sniffer spotlighted a rising new technique. It termed the fraudulent method Angel Drainer, citing that it started becoming popular after the Inferno Drainer’s exit. Additionally, the on-chain firm likened the emergent trend to hydra, noting that it kept evolving and seemed difficult to curtail.

🧵 [4/7] PHISHING EVOLUTION 🔄

Inferno Drainer's exit led to Angel Drainer's rise.

Like a hydra – cut off one head, another appears.
The threat never dies, it evolves.https://t.co/r2RVyLCGFN

— Scam Sniffer | Web3 Anti-Scam (@realScamSniffer) December 3, 2024

What Crypto Enthusiasts Must Do to Safeguard Their Digital Assets

Scam Sniffer did not fail to present practical means users can adopt to ensure they do not forfeit their hard-earned resources to scammers. It advised investors to hesitate before signing transactions and critically evaluate every signature request before providing such crucial personal information.

Other methods of safekeeping crypto assets include adopting protective mechanisms like anti-scam enhanced wallets and other related applications. Furthermore, Scam Sniffer suggested contacting reputable on-chain trackers to aid in quick investigational procedures.

Considering the negative impacts of crypto thefts and how scammers devise sophisticated hack techniques, crypto users and firms must stay ahead of the malicious actors to prevent future losses. Recently, DMM Bitcoin, a renowned Japanese exchange, announced it is shutting down, citing scam-related reasons.

The Japan-based trading platform was a target of a scam scheme in May. It forfeited roughly $320 million worth of BTC, marking one of the most significant crypto losses ever recorded. Since then, the exchange has struggled to recover from the losses. Hence, it decided to halt operations while seeking means to compensate customers.

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