Warning: A Scam-as-a-Service Facilitating Online Intruders in Crypto Wallet-Draining Attacks

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Crypto Wallet-Draining Attacks

Warning: A Scam-as-a-Service Facilitating Online Intruders in Crypto Wallet-Draining Attacks

Researchers in cybersecurity are issuing advisories regarding a surge in phishing attacks with the intent of stealing cryptocurrency purses.

“These threats employ a crypto wallet-draining technique to target nearly twenty other networks, including Ethereum, Binance Smart Chain, Polygon, Avalanche, and nearly twenty others,” said Check Point researchers Oded Vanunu, Dikla Barda, and Roman Zaikin. “Their approach is distinctive.”

One notable contributor to this concerning pattern is the infamous phishing organization known as Angel Drainer, which promotes a “scam-as-a-service” model in which it charges its collaborators a percentage of the pilfered funds, usually 20% or 30%, in exchange for wallet-draining scripts and additional services.

A wallet-draining service comparable to Inferno Drainer ceased operations permanently in late November 2023, after assisting con artists in stealing cryptocurrency worth more than $70 million from 103,676 victims since its inception in late 2022.

Scam Sniffer, a provider of Web3 anti-scam solutions, characterized the vendor as a specialist in multi-chain schemes and a purveyor who demanded 20% of the pilfered assets in May 2023.

The actor stated in a message published on the organization’s Telegram channel, “It has been a long journey with you all, and we are sincerely grateful.”

“A big thanks to everyone who has worked with us such as Drakan and every other customer, we hope you can remember us as the best drainer that has ever existed and that we succeeded in helping you in the quest of making money.”

Central to these services is a crypto-draining tool, which has been meticulously designed to enable unauthorized transfers of cryptocurrency from the wallets of victims, thereby facilitating cyber theft.

Usually achieved through the use of airdrop or phishing schemes, this is achieved by deceiving victims into linking their wallets to illegitimate websites that are distributed via malvertising schemes or unsolicited social media emails and messages.

A phishing scheme was exposed by Scam Sniffer earlier this month. The scheme involved fraudulent advertisements for cryptocurrency platforms on Google and X (formerly Twitter), which led users to dubious websites where their digital wallets were compromised.

“The user is induced to interact with a malicious smart contract under the guise of claiming the airdrop, which stealthily increases the attacker’s allowance through functions like approve or permit,” according to Check Point.

“The user inadvertently provides authorization for the assailant to access their funds, thereby facilitating the theft of tokens without any additional engagement from the user.” Subsequently, the perpetrators employ techniques such as mixers or multiple transfers in order to obfuscate their traces and effectively destroy the pilfered assets.

In order to reduce the potential hazards presented by these fraudulent schemes, it is advisable for users to utilize hardware wallets for heightened security, authenticate smart contracts, and routinely audit wallet allowances for indications of dubious behavior.

About The Author:

Yogesh Naager is a content marketer who specializes in the cybersecurity and B2B space.  Besides writing for the News4Hackers blog, he’s also written for brands including CollegeDunia, Utsav Fashion, and NASSCOM.  Naager entered the field of content in an unusual way.  He began his career as an insurance sales executive, where he developed an interest in simplifying difficult concepts.  He also combines this interest with a love of narrative, which makes him a good writer in the cybersecurity field.  In the bottom line, he frequently writes for Craw Security.

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