Approval phishing scams have been on the rise, with at least $1bn in cryptocurrency stolen since May 2021, according to a recent report by Chainalysis. This type of scam involves tricking targets into signing a malicious blockchain transaction that gives approval to spend specific tokens from their wallet. Once the transaction is signed, the scammer can drain the victim’s wallet at will.
The report also highlights that approval phishers are increasingly targeting specific crypto users, often using romance scam techniques to build relationships with victims. The most successful address is believed to have stolen $44.3m from thousands of victim addresses, accounting for a significant portion of the total amount stolen.
To tackle approval phishing, crypto compliance teams can take several steps. Firstly, educating cryptocurrency users about this type of scam and advising them not to sign approval transactions unless they trust the source is crucial. Monitoring the blockchain for suspected approval phishing consolidation wallets and taking action, such as freezing funds or reporting to law enforcement, can also help combat this threat.
The report emphasizes that the actual losses from approval phishing scams could be much higher, as romance scams are often underreported. By raising awareness and implementing proactive measures, the crypto community can better protect themselves against this type of cybercrime.
Overall, staying vigilant and informed is key to mitigating the risks associated with approval phishing scams. By taking proactive steps and working together, we can help safeguard the integrity of the cryptocurrency ecosystem.