A recent spree of cryptocurrency thefts has seen over $2 million stolen from Safe Wallet users through a method known as 'address poisoning.' This sophisticated scam, which has affected approximately 21 individuals, involves creating a wallet address that closely resembles the victim's, deceiving them into sending funds to the wrong account. Notable is the case of Florence Finance, which lost $1.5 million to such an attack, where the scammer used the 'Create2' Solidity function to generate a similar address, effectively bypassing wallet security alerts.
In one instance, a user with $10 million in their wallet lost $400,000 due to this scam. Address poisoning works by the attacker sending small amounts of crypto to the target from a fake wallet, thus contaminating their transaction history. The unsuspecting victim, mistaking the fake for their regular address, sends funds to the hacker's address. Scam Sniffer, a Web3 scam detection platform, reported that this same attacker has siphoned off $5 million from around 21 victims in the past four months.
This alarming rise in address poisoning attacks underscores the need for increased vigilance and security measures in managing digital assets. Users are advised to double-check addresses and be wary of transaction histories, especially when large sums are involved.
Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.