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According to ScamSniffer, a blockchain security company, a cryptocurrency whale suffered a loss of over $32 million due to a transaction linked to the Inferno Drainer scam operation. This operation preys on users by creating fake versions of popular DeFi applications, tricking victims into handing over control of their wallets to the scammers.
Inferno Drainer Fraud Operation
The Inferno Drainer service targets users and results in significant financial losses. Victims inadvertently share access to their wallets, making them vulnerable to theft.
Extent of Losses and Impact of the Operation
Dune Analytics panels from ScamSniffer indicate that the Inferno Drainer operation has stolen over $215 million from more than 200,000 victims. The operators take 20% of the cryptocurrency stolen from wallets.
Combating Fraud and Warnings
After being shut down by developers in November 2023, the operation resumed in May with new features. The crypto data platform LookOnChain has urged users to avoid clicking on unknown links and to be cautious about signing unfamiliar transactions:
To avoid phishing, please do not click on unknown links and avoid signing unknown signatures. Always double-check signatures before approving.
As fraud becomes increasingly sophisticated, extra caution is necessary for cryptocurrency security.
Ways to Protect Against Malicious Attacks
To protect against such attacks, users should employ anti-phishing software and ensure antivirus programs are up to date. Regular updates to devices and software are essential for maintaining security.
Two-factor authentication (2FA) should always be enabled, and users should avoid clicking on files from untrusted sources. Attention should also be paid to phishing attempts conducted via social media.
Inferno Drainer persuades users to connect their wallets and approve transactions using fake scripts of popular Web3 protocols. The scammers have also promoted their services through a Telegram channel. Ultimately, being informed and taking proactive measures against potential threats is crucial for cryptocurrency security.
