In 2023, more than 324,000 cryptocurrency users fell victim to phishing scams, with approximately $295 million in Web3 wallet assets lost to attacks. Blockchain security platform Scam Sniffer analyzed trends in phishing methods in its 2023 Wallet Attacks Report, noting a consistent increase in phishing activities throughout the year.
Despite measures against phishing methods, Scam Sniffer reported that phishing gangs continue to operate using various tactics, as platforms serving these scammers remain available. These gangs persist in their fraudulent activities, quickly adapting and moving to different platforms after any countermeasures are implemented.
On March 2, 2023, the infamous Monkey Drainer phishing operation was shut down. Scam Sniffer estimates that Monkey Drainer stole approximately $16 million in crypto assets before its closure. However, phishing continued as the group offered alternative scamming services to its criminal clientele.
Similarly, Inferno Drainer, responsible for stealing around $81 million in crypto assets, was shut down in 2023. Post-closure, it appears that Angel Drainer has taken over Inferno Drainer’s role, according to Scam Sniffer.
Scam Sniffer also shared insights into how phishing sites generate traffic. One tactic used by crypto thieves involves hacking official Discord and social media accounts of Web3 projects. After gaining control of official accounts, hackers distribute phishing links through posts.
Besides hacking, phishing websites also generate organic traffic by conducting fake airdrop events for cryptocurrencies or NFTs. They hijack expired Discord links and create spam traffic on social media. Scammers also exploit advertising guidelines of Google and social media platforms, managing to publish paid Google search ads and Twitter ads, as per Scam Sniffer’s findings.