Cryptocurrency scams on Ethereum Virtual Machine (EVM) chains caused whopping $314 million in losses during the first half of 2024. This is a substantial and pretty worrying 6.44% increase from the same period last year.
This data comes from a new report by blockchain research firm Scam Sniffer and it is truly scary.
For example, the report reveals that $58 million was lost by just 20 victims, with the largest single attack resulted in an $11 million loss for one unlucky individual.
Researchers noted that scammers used common phishing techniques to gain control of victims' funds, and these methods are very old and still efficient despite the fact that security researchers keep telling people about them for ages.
These techniques included Permit, IncreaseAllowance, and Uniswap Permit2 signatures. They allowed scammers to access funds without additional permissions. The most significant thefts targeted assets in staking, restaking, Aave collateral, and Pendle tokens.
Social media played a role in these scams. Phishing comments from fake accounts on platforms like X led victims to fraudulent websites. These sites tricked users into making seemingly legitimate transactions from non-custodial wallets.
SlowMist, Scam Sniffer's parent company, reported some success in combating these crimes. They froze approximately $20.66 million in stolen funds across 13 platforms during Q2 2024.
Bitget, a cryptocurrency exchange, highlighted another growing threat. They reported a surge in deepfake-related crypto fraud. Losses from these scams have exceeded $79.1 billion since 2022.
There has been a 245% increase in deepfake scams in 2024 alone. Bitget warns that quarterly losses from deepfake use could reach $10 billion by 2025.
The rise in crypto scams highlights the need for increased security measures and underscores the importance of user education in the crypto space. The more advanced technologies still require us, mere mortals, to use caution, especially when it comes to saving and transferring huge funds with those new tech.
Ethereum Virtual Machine (EVM) is a crucial component of the Ethereum blockchain. It executes smart contracts and processes transactions. The EVM also allows developers to create decentralized applications (dApps) on the Ethereum network, and thus is has become a substantial driving force for web3. Its compatibility across multiple blockchains has made it a target for scammers seeking to exploit vulnerabilities across various platforms.