According to a report by Scam Sniffer, malicious scripts have stolen approximately $59 million in cryptocurrency from more than 63,000 users over the past three quarters. It also states that there are more than 10,000 websites linked to Drainer’s Wallet. Activity surges in May, June and November. 

These ads are for cryptocurrency or NFT airdrops, and some are for popular blockchain ecosystems.

Malvertising uses regional targeting and page flipping to evade review, complicating the evaluation process. Testing ads for X in the feed revealed the presence of 9 phishing ads, with more than 60% of people using this wallet scammer.

Ledger, a leading hardware crypto wallet provider, warned its customers earlier this month about the risks of using dapps. The cause is an identified supply chain attack.

Malicious JavaScript code was introduced in the Ledger dapp Connect Kit library, which allows web3 applications to interact with Ledger wallets.

Data on the blockchain shows that the campaign of MS Drainer, one of its Ethereum chain victims, lost around $24 million in cryptocurrency, while other notable cases involved victims losing between $440,000 and $1.2 million. .

In Google searches, MS Drainer was promoted using malicious ads and keywords related to DeFi platforms such as Zapper, Lido, Stargate, Defillama, Orbiter Finance and Radiant.

Most scam ads on X are posted from accounts with a blue checkmark and are only verified by "X" platform policies. 

2023 Crypto Scams Chanalysis Report

Although revenue from cryptocurrency scams fell by about $3.3 billion in the first half of 2023 compared to 2022, to just over $1 billion, ransomware remains a long-term problem, according to Chainanalysis. 

Ransomware attackers made nearly $175.8 million more during this period compared to last year.

Meanwhile, cryptocurrency hacks and scams increased by approximately 60% in the third quarter of 2023 compared to the same period in 2022, resulting in approximately $686 million in losses to fraudulent activity. 

Hacken’s take on crypto scams – 2023

According to a recent survey, investors believe cryptocurrency carpet pulls are the easiest scams to fall for. According to Haken’s recent investigation, most cryptocurrency frauds have identifiable characteristics that make them easy to spot.

In light of the recent wave of cryptocurrency leaks, the Blockchain Audit study evaluates the security protocols of affected projects. It noted in the report that many of the affected projects did not proceed with audits, and some audits did not yield any supporting data. 

Disclaimer

The views and opinions expressed by the author or any person named herein are for informational purposes only and do not constitute financial, investment or other advice. Investing in or trading cryptocurrencies or stocks carries a risk of financial loss.