Crypto Investors Lose $300 Million to Phishing Scams in 2023

By Michael B. Cohen

Vice President of Global Operations

If you are a crypto enthusiast, you might want to read this carefully. A new report by web3 security firm Scam Sniffer reveals that phishing scams in the crypto space have cost investors a whopping $300 million in 2023 alone. That’s more than the GDP of some countries!

How did this happen? According to the report, the main culprit behind these scams is a type of malware called wallet drainer, which is embedded within phishing websites that lure unsuspecting users to enter their wallet credentials. Once the user does that, the wallet drainer transfers all the funds from the user’s wallet to the attacker’s address, leaving the user with nothing.

The report identifies six major wallet drainer service providers that have been operating in the dark web: Inferno, MS, Angel, Monkey Drainer, Venom Drainer, Pink Drainer, and Pussy Drainer. These services provide ready-made phishing websites and wallet drainers to anyone who wants to launch a scam campaign. They also charge a 20% fee for every successful theft.

The most successful of these services was Inferno Drainer, which stole $81 million from 134,000 users in just nine months. It shut down its operations in November 2023, presumably to avoid detection and prosecution. The second and third place went to MS Drainer and Angel Drainer, which stole $59 million from 63,000 users and $20 million from 30,000 victims, respectively.

The report also reveals various tactics used by the scammers to attract victims, such as hacking attacks, organic and paid traffic strategies, and manipulation of official social media accounts. The scammers also tailored their phishing methods according to the content of the victim’s wallet. For example, if the victim had a lot of NFTs or DeFi tokens, they would receive an email or a message claiming that they had won a giveaway or a lottery.

Scam Sniffer scanned nearly 12 million URLs during the reporting period, uncovering about 145,000 malicious URLs. It also maintains a blacklist of approximately 100,000 malicious domains that are known to host phishing websites. The firm advises crypto users to be vigilant and cautious when dealing with online platforms and services, and to always verify the authenticity of the websites they visit.

Phishing scams are not new in the crypto space, but they have become more sophisticated and prevalent in recent years. As the crypto market grows and attracts more users, so does the incentive for scammers to exploit them. Therefore, it is important for crypto users to educate themselves and protect their assets from these malicious actors.

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We attentively listen to your story, comprehending your situation.

Gathering all evidence and pertinent documents related to your case is our priority.

Utilizing advanced technology, including law enforcement software, bitcoin forensics, and a scam detection database, we trace the scammers and their wallets.

A comprehensive report is prepared for you, empowering you to file a complaint with the authorities.

We provide guidance on the optimal strategy to reclaim your money and protect against future scams.

Don’t allow scammers to escape with your hard-earned money. Reach out to us today and let MyChargeBack assist you in your crypto recovery!