Ethereum

Token

Million

<figure>
 <figcaption>
 Cover image via <a href="https://u.today/" rel="noopener noreferrer nofollow">U.Today</a>
 </figcaption>
</figure>
According to blockchain security firm Scam Sniffer, someone recently&nbsp;<a href="https://x.com/realScamSniffer/status/1844590237521203610" rel="noopener noreferrer nofollow">lost</a> 15,079 fwDETH ($35 million) after falling for a phishing scam.
The "permit" option was introduced with Ethereum Improvement Proposal (EIP) 2612, making it possible to make gasless token transfers.&nbsp;
An off-chain authorization signature allows someone else to transfer tokens from their account.&nbsp;
Normally, ERC-20 token transfers represent a two-step process that consists of confirming a transaction on the blockchain by paying a gas fee and then moving a certain number of tokens to another account. Thanks to the "permit" option, a transaction gets signed off-chain. Apart from saving on gas fees, this also makes transactions more user-friendly.&nbsp;
While adding more convenience and flexibility, the feature also opened up a new avenue for fraudsters to separate some uninitiated users from their money.&nbsp;
Token holders can get tricked into signing a malicious authorization, thus allowing the attacker to steal tokens from their website in broad daylight.&nbsp;
According to Scam Sniffer, scams that revolve around signatures with the ERC-20 permit have emerged as the main type of phishing scams. Notably, victims tend to be tricked into signing malicious transactions with the help of impersonated social media accounts.&nbsp;
The blockchain security firm previously exposed the Inferno Drainer group, which has collected tens of thousands of victims by creating phishing websites mimicking popular crypto projects and luring them into performing off-chain signatures.&nbsp;
In January, Scam Sniffer&nbsp;<a href="https://drops.scamsniffer.io/post/scam-sniffer-2023-crypto-phishing-scams-drain-300-million-from-320000-users/" rel="noopener noreferrer nofollow">revealed</a> that crypto users suffered more than $300 million worth of losses in 2023 due to phishing scams. &nbsp;

Someone Just Lost $35 Million Worth of Crypto After Falling for This Phishing Scam

U_Today

Other articles published on Oct 11, 2024

Bitnomial challenges SEC’s classification of XRP as a security

With a Thriving Presale, Is Qubetics Leading the Way in Cross-Border Innovation? What’s Driving I...

Cardano’s Voltaire Era: Empowering Communities for a Brighter Future

Eswatini unveils digital lilangeni CBDC to boost trade and financial inclusion

BREAKING! US PPI Data Announced! What Was Bitcoin's (BTC) First Reaction?!

Top 5 Best Crypto Presales of 2024: How This New Crypto is Leading the Charge with dVPN

Join our free newsletter for daily crypto updates!