Protecting Your Crypto: How to Safeguard Against Address Poisoning Attacks and Secure Your Safe Wallet

2023-12-04 17:03:26

A malicious attacker responsible for at least $5 million worth of stolen crypto through the “address poisoning attack” has now launched an intense attack once morest Safe Wallet users over the past week. A cryptohacker specializing in “address poisoning” has stolen more than $2 million from Safe Wallet users in the past week alone, and the number of victims has now reached 21. On December 3, Scam Sniffer, a Web3 fraud detection platform, reported that since November 26, around ten Safe Wallet users had already lost more than $2.05 million due to address poisoning attacks. According to Dune Analytics data compiled by Scam Sniffer, the same attacker likely stole at least $5 million from around 21 victims in the past four months. Scam Sniffer also reported a very interesting case. One of the victims kept $10 million worth of crypto in a Safe Wallet, but “fortunately” only $400,000 was stolen from him. What is an address poisoning attack An address poisoning attack is when the attacker creates an address that looks similar to the one to which the target victim regularly sends crypto. It usually uses the same opening and closing characters when creating the title, so the title is very misleading. The hacker then often sends a small amount of tokens from the newly created wallet to the target to “poison” the transaction history. An unsuspecting victim can then mistakenly copy the fraudster-created address from their transaction history and send money to the hacker’s wallet instead of the intended destination. A recent high-profile address poisoning attack, apparently carried out by the same attacker, occurred on November 30, when asset lending protocol Florence Finance lost $1.45 million USDC in the attack. Then blockchain security firm PeckShield, which reported on the incident, showed how the attacker was able to trick the protocol: the poison and the real address both started with “0xB087” and ended with “5870”. Also in November, Scam Sniffer reported that hackers were abusing Ethereum’s “Create2” Solidity feature to bypass the wallet’s security warnings. This led to hackers known as Wallet Drainers stealing around $60 million worth of crypto from nearly 100,000 victims in six months. Address poisoning was one of the methods used in the attack. Create2 pre-scans smart contract addresses. This allowed malicious actors to generate new, similar wallet addresses, which are then deployed following the victim authorizes a fake signature or transfer request. According to SlowMist’s security team, a group has been using Create2 since August to consistently steal nearly $3 million worth of assets from 11 victims. One victim may have lost up to $1.6 million.

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