Crypto Scam Drains $908,551 After 458-Day Phishing Approval

A recent crypto phishing approval scam has highlighted the dangers of long-term wallet permissions, as an individual lost $908,551 in USDC stablecoins after unknowingly granting a malicious token approval 458 days earlier. The scam involved a deceptive ERC-20 approval transaction likely initiated through a phishing site or fake airdrop, which provided the attacker with continuous access to the victim's wallet [1].

The theft did not occur immediately after the approval was granted. Instead, the attacker waited over a year until the wallet received two large deposits totaling the exact amount stolen. This delay demonstrates a strategic approach by scammers who often monitor wallet activity and strike only when the balance justifies the risk [1].

Security experts emphasize that users should regularly review their token approvals and use tools like Etherscan’s Token Approval Checker to revoke unnecessary or suspicious permissions. Although each revocation requires a gas fee, the cost is far outweighed by the potential losses from dormant malicious approvals [1].

The incident fits into a broader trend of rising crypto scams. In July 2024 alone, over $142 million was stolen in multiple attacks, including the high-profile CoinDCX exchange exploit. These figures underscore the growing threat in the crypto space and the urgent need for improved user vigilance and proactive wallet management [1].

Phishing approval scams operate by tricking users into signing token approvals that grant attackers ongoing access to wallet funds. Attackers typically wait to drain assets when the wallet balance is high, making delayed thefts particularly dangerous. To mitigate these risks, users are advised to avoid signing suspicious transactions, regularly monitor their wallet activity, and use trusted tools to revoke unnecessary permissions [1].

This case illustrates the critical importance of maintaining wallet security in the crypto ecosystem. As scams become more sophisticated, users must stay informed and adopt best practices to protect their digital assets.

Source: [1] USDC Wallet Draining Scam Highlights Risks of Long-Term Phishing Approval Transactions (https://en.coinotag.com/usdc-wallet-draining-scam-highlights-risks-of-long-term-phishing-approval-transactions/)