Users Lost $300 Million in a Crypto Scam in 2023

By Markus David
Director of Professional Services

Phishing scams are one of the biggest threats to the crypto community, as they can result in massive losses of digital assets and personal data. According to a report by Scam Sniffer, a blockchain security platform, users lost over $300 million in digital assets to drainers, which are malicious programs that steal private keys or passwords from unsuspecting victims, in 2023 alone.

Phishing scams are not new, but they have become more sophisticated and widespread in the crypto space. Scammers use various techniques to trick users into clicking on malicious links or downloading fake apps that compromise their security. Some of the most common methods include:

  • Impersonating reputable crypto platforms or influencers on social media or email. Scammers create fake accounts or profiles that look identical or similar to the real ones, and use them to send messages or posts that lure users into clicking on malicious links or downloading fake apps. For example, a scammer might create a fake Twitter account that looks like the official account of a popular crypto exchange, and tweet a link to a fake website that asks users to enter their login credentials or private keys.
  • Creating fake websites that look identical to legitimate ones, but have a slightly different URL or domain name. Scammers register domain names that are similar to the ones of reputable crypto platforms or projects, but have a slight variation, such as a different extension, a misspelling, or an extra character. For example, instead of, a scammer might use or They then design the fake website to look exactly like the real one, and use it to collect users’ data or funds.
  • Offering fake giveaways, airdrops, or investment opportunities that require users to send crypto or enter their private keys. Scammers use various platforms, such as social media, email, or messaging apps, to promote fake offers that promise users free crypto, tokens, or high returns on their investments. They then ask users to send a small amount of crypto to a specified address, or enter their private keys on a fake website, in order to claim the offer. However, once users do so, they lose their funds and access to their wallets.
  • Publishing paid ads on Google Search or Twitter that direct users to phishing websites, bypassing the advertising guidelines set by these platforms. Scammers use keywords related to crypto or popular platforms or projects to create ads that appear on Google Search or Twitter when users search for them. These ads look legitimate and often use logos or names of reputable platforms or projects. However, they link to phishing websites that ask users for their data or funds.

According to Cointelegraph, a leading source of crypto news, over 324,000 crypto users fell victim to phishing scams in 2023, resulting in approximately $295 million in digital asset losses. The “2023 Wallet Drainers Report” by Scam Sniffer analyzed trends in drainers used in crypto phishing scams, indicating a sustained growth in phishing activities throughout the year.

Scam Sniffer noted that even when drainers shut down, “phishing gangs” relocate their operations to other platforms, making it harder for authorities and security experts to track them down. Cointelegraph also highlighted the prevalence of platforms offering services to scammers, such as hosting, domain registration, or encryption.

So how can you protect yourself from phishing scams in 2024? Here are some tips to keep in mind:

  • Always double-check the URL and domain name of any website you visit or app you download. Look for spelling errors, extra characters, or unusual extensions. For example, instead of, a scammer might use or You can also use tools such as WHOIS or DNS Lookup to verify the ownership and registration details of any domain name.
  • Never enter your private keys or passwords on any website or app that claims to be affiliated with a crypto platform or project. No legitimate platform will ever ask you for this information. If you are unsure, contact the official support team of the platform or project directly via their official website or social media channels. You can also use tools such as Etherscan or Blockchain Explorer to verify the validity and balance of any crypto address before sending funds.
  • Do not click on any links or attachments in emails or messages that claim to be from a crypto platform or influencer. These could be phishing attempts that redirect you to fake websites or download malware on your device. Instead, go to the official website or social media account of the platform or influencer and verify the information there. You can also use tools such as VirusTotal or Malwarebytes to scan any files or links for viruses or malware before opening them.
  • Be wary of any offers that sound too good to be true, such as free giveaways, airdrops, or investment opportunities that promise high returns. These are usually scams that require you to send crypto or enter your private keys. Do your own research and due diligence before participating in any crypto-related activity. You can also use tools such as Scam Alert or Crypto Scam Checker to check the reputation and legitimacy of any platform or project before engaging with them.
  • Use a reputable antivirus software and firewall on your device and keep them updated. These can help detect and block malicious programs and websites that try to access your data or infect your device. You can also use tools such as Metamask or Trust Wallet to protect your browser or mobile device from phishing attacks when accessing crypto platforms or projects.
  • Use a hardware wallet or a secure software wallet to store your crypto assets. Hardware wallets are physical devices that store your private keys offline, making them immune to hacking. Software wallets are applications that store your private keys on your device, but require you to set a strong password and enable encryption. You can also use tools such as Ledger or Trezor to manage your hardware wallets, or Exodus or Atomic to manage your software wallets.

Phishing scams are one of the biggest threats to the crypto community, but they can be avoided if you follow these simple steps. By being vigilant and cautious, you can enjoy the benefits of crypto without risking your hard-earned money.

Don’t give up on your crypto losses! MyChargeBack has the tools and expertise to help you recover your funds from scammers. Here’s how we do it:

  • We listen to your story and understand your situation.
  • We collect all the evidence and documents related to your case.
  • We use cutting-edge technology, such as law enforcement software, bitcoin forensics and a scam detection database, to track down the scammers and their wallets.
  • We prepare a detailed report that you can use to file a complaint with the authorities.
  • We guide you through the best strategy to reclaim your money and avoid future scams.

Don’t let the scammers get away with your hard-earned money. Contact us today and let us help you with your crypto recovery!