Cryptocurrency phishing losses fell 83% in 2025 to $83.85 million from $494 million the previous year.
The number of victims declined 68% to 106,106, according to Web3 security platform Scam Sniffer.
The firm warned that phishing activity closely tracked market cycles rather than disappearing entirely.
Third quarter losses reached $31 million during Ethereum's (ETH) strongest rally, accounting for 29% of annual phishing damage.
What Happened
Permit signature attacks remained the dominant method, representing 38% of incidents exceeding $1 million in losses.
The largest single theft totaled $6.5 million in September through a malicious Permit signature.
EIP-7702 malicious signatures emerged after Ethereum's Pectra upgrade, enabling attackers to exploit account abstraction.
Two major EIP-7702 cases in August resulted in $2.54 million in combined losses.
Large-scale incidents declined sharply, with only 11 cases exceeding $1 million compared to 30 in 2024.
Average loss per victim fell to $790, suggesting attackers shifted toward higher-volume, retail-focused campaigns.
Monthly losses ranged from $2.04 million in December to $12.17 million in August during peak market activity.
Read also: XRP Overtakes BNB To Claim Fourth-Largest Cryptocurrency Position
Why It Matters
Scam Sniffer concluded that "the drainer ecosystem remains active - as old drainers exit, new ones emerge to fill the gap."
Phishing losses correlated directly with market activity, rising when user engagement increased across blockchain networks.
Separate data from PeckShield showed December crypto hacks fell 60% to approximately $76 million from November's $194.2 million.
The largest December incident involved a $50 million address poisoning scam using lookalike wallet addresses.
A $27.3 million private key leak tied to a multi-signature wallet highlighted persistent key management vulnerabilities.
Security researchers noted that attackers increasingly favor deception and social engineering over technical exploits.
Read next: Arkham Tracks $635M Ethereum Position Nearing Breakeven At $3,033