Lawrence Damilola
A cryptocurrency scammer has executed a poisoning attack that resulted in a victim losing $45,000 and a staggering return on investment (ROI) of 899,900% for the scammer. This incident, shared via the @web3_Antivirus X account, showcased how the scammer deceived the victim by sending small transactions to mimic addresses.
The scam unfolded when a malicious actor transferred just $5 to a wallet, creating a fake address almost identical to the victim’s legitimate wallet address. The scammer’s address differed only by a few characters, but enough to confuse the victim, leading them to transfer a significantly larger amount — $45,000 USDT — minutes later. This method of address poisoning takes advantage of slight character variations to trick users into making high-value transactions to fraudulent addresses.
899,900% ROI—the scammer got from a $5 transfer leading to a $45k address poisoning attack just 10 minutes later! 😱
— Web3 Antivirus (@web3_antivirus) September 27, 2024
We have an API that solves this 100% and it’s free for all wallets and exchanges.
Please help to amplify! 🙏 pic.twitter.com/JOJywJvLzX
An address poisoning attack is a scam in which a malicious actor sends small transactions to a wallet with a fake address that closely resembles the victim’s legitimate address. This technique aims to confuse the user into accidentally transferring larger amounts of cryptocurrency to the scammer’s wallet by selecting the wrong address from their transaction history.
The transaction was recorded on the blockchain, with a hash provided confirming the $45,000 transfer of Tether USD (USDT). The scam occurred today within ten minutes.
The attack highlights a well-known method scammers use in the crypto space: address poisoning. Criminals send small-value transactions to unsuspecting users, creating a close copy of a legitimate wallet address to trap victims. By poisoning the address history, scammers significantly increase the risk of users misdirecting funds to the wrong recipient.
In light of this incident, @web3_Antivirus advocates for integrating their API into all wallets and exchanges as a proactive measure to prevent such poisoning attacks. Implementing robust security protocols, exchanges, and wallet providers can significantly reduce the likelihood of successful attacks. The proposed API aims to enhance user protection by monitoring transactions for suspicious activity and providing real-time alerts.
In May, a significant attack resulted in a loss of approximately $68 million for a crypto whale. This attack involved tricking the victim into sending funds to a malicious address that had been introduced into their transaction history. The attacker utilized lookalike addresses to exploit the victim’s reliance on past transactions, leading to this substantial financial loss.
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Lawrence does not hold any crypto asset. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
