Address poisoning scams have become very rampant in the crypto industry lately. In a recent case reported by Scam Sniffer (a Web3 anti-scam solutions provider) on their official X page, a Solana user lost $2.91 million after making a transaction to the wrong CEX deposit address. The loss happened as a result of the user copying and pasting a fake address that a scammer had strategically placed on his transaction history.
Prior to the incident the scammer had sent the victim 0.000001 SOL using a fake wallet address which he had created using the first 4 letters of a correct deposit address. This transaction strategically placed the fake address on the victim’s transaction history who unknowingly sent $2.91 Million worth of $PYTH to the fake wallet address.
As indicated by Solscan, the victim intended to send the 7 Million $PYTH coins to wallet address 4yfu48…gnhY but rather sent it to the 4yfuQC…izcY (wrong address). Arkham Intelligence has located the stolen funds to a wallet address 3eFh…ZNyt.
Address Poisoning Scams Are on The Rise
This incident where the victim lost $2.91 Million is not the only address poisoning scam to happen this year. Rather, there have been other scams of this type in 2024. According to Scam Sniffer, on 20th November another user lost $129 million after copying the wrong address from his transaction history.
https://twitter.com/realScamSniffer/status/1859089504994554363
Unlike the victim in the latest incident, the user who lost $129 million was able to recover his funds after the scammer returned the money just an hour after the incident.
In another incident reported by Cyvers (a Web3 security platform), on 3rd May 2024, a crypto whale lost $68 million worth of WBTC when he sent the coins to a wallet address that he had copied from his contaminated transaction history. Analyzing the three incidents, it is quite evident that scammers have shifted to address poisoning scams, which have often led to substantial losses.
Safety Tips To Avoid Falling Victim of Address Poisoning Scams
With the address poisoning technique now a go-to method for scammers, it is crucial for every crypto investor and user to be well informed about how to avoid being a victim. Below are a few safety tips:
- Double-Check Wallet Addresses: Always make sure that you confirm the wallet address that you are sending funds to. Doing so ensures that you send the funds to the intended recipient.
- Send Test Transactions: It’s always good to verify that the address you are sending to is the correct one. In case you need to send out a huge sum of crypto, you can send a smaller amount first to verify the address.
- Avoid Copying Addresses From Transaction History: If not keen enough, it is difficult to identify compromised transaction histories. To stay safe, users can refrain from copying and pasting wallet addresses from the transaction history.
Final Thoughts
The cryptocurrency industry is growing imminently. With this growth, crypto scams like address poisoning scams which target users who may not be well informed. To avoid losing coins worth millions like the user that recently lost $2.91 million, users have to be very keen when making transactions.
