YEREVAN (CoinChapter.com) — The Safe Wallet scam repercussions span beyond “address poisoning” attacks. In the past week, a crypto hacker behind the scam successfully stole over $2 million from Safe Wallet users, increasing the total number of victims to 21.
Safe Wallet Scam Details
Scam Sniffer, a Web3 scam detection platform, revealed on Dec. 3 that about ten Safe Wallets had suffered losses of $2.05 million due to these attacks since November. The platform analyzed data from Dune Analytics, which indicates that this attacker has stolen a minimum of $5 million from approximately 21 victims over the last four months.
Scam Sniffer also disclosed that one victim, who had $10 million in cryptocurrency in their Safe Wallet, fortuitously lost only $400,000 in the scam.
As mentioned, the Safe Wallet scam involved a method known as “address poisoning,” where attackers deceive users into sending funds to fraudulent addresses.
Mechanism of the Address Poisoning Attack
Address poisoning works by confusing the victim through manipulated transaction histories. The attacker generates a contaminated address resembling the victim’s own and sends small amounts of cryptocurrency to it.
This method creates a deceptive entry in the victim’s transaction history. For example, Florence Finance, one of the victims, transferred $1.45 million to a contaminated address in their transaction history.
The Aftermath and Mitigation Strategies
Following the Safe Wallet scam and incidents of address poisoning, investigative efforts such as those by MistTrack revealed that the stolen assets were often transferred to different Bitcoin addresses through THORChain. In response, platforms like Etherscan now display the last eight digits of addresses and include security reminders to prevent users from copying incorrect addresses.
Wallets like Rabby provide first-time transfer reminders to new addresses. Despite these measures, it’s crucial for users to practice safer transaction habits, such as not relying on transaction history for address verification and always cross-validating recipient addresses.
The Safe Wallet scam, particularly through address poisoning, proves that cyber threats in the cryptocurrency space are alive and well. Users must stay vigilant and informed to protect their assets against such sophisticated scams.
