Crypto User Loses $3.05 Million in Sophisticated Phishing Attack Using EIP-7702 Contract

A crypto user recently lost $3.05 million in a phishing attack that exploited a malicious EIP-7702 contract, as reported by on-chain analytics platforms and exchanges [1]. The victim unknowingly signed a deceptive transaction, granting attackers access to their Aave-wrapped USDT (aEthUSDT), which was then drained without direct wallet access [1]. The fraudulent activity appeared as a legitimate Uniswap swap, misleading the user into approving the transaction [1]. The attack leveraged lingering permissions, a method where cybercriminals retain transaction privileges long after an initial approval, making it harder to detect [1].

The scam was initiated through the wallet address 0x2d98…6695, which interacted with a malicious smart contract [1]. Despite the quick identification of the suspicious transaction by security firms like Lookonchain, PeckShield, and Scam Sniffer, the funds were rapidly moved through obfuscation techniques, effectively preventing recovery [1]. The incident highlights the speed and sophistication of modern phishing attacks, as well as the limitations of existing detection systems [1]. Analysts emphasize the importance of user vigilance, including regular audits of wallet permissions, caution when interacting with dApps, and the use of offline storage for large assets [1].

This attack is part of a growing trend in the crypto industry. In 2024, over $4.6 billion was lost to scams, with 40% attributed to AI-enhanced fraud [1]. Phishing schemes often mimic legitimate communications or investment opportunities to trick users into approving fraudulent transactions [1]. In this case, the victim likely clicked on a deceptive dApp or malicious link that initiated the unauthorized transfer [1]. Similar cases have occurred in the past, with another user recently losing $908,000 after approving a transaction nearly 458 days earlier [1]. These incidents underscore the long-term risks of outdated permissions.

The crypto community has responded with calls for heightened awareness and stronger security protocols. Industry watchdogs, including Bitget, SlowMist, and Elliptic, are part of initiatives like the $300 million Anti-Scam Hub aimed at combating fraud [1]. However, experts stress that user education remains a crucial defense. Lookonchain, a leading blockchain analytics firm, warned users to always verify URLs and carefully review transaction requests before signing [1].

The attack serves as a stark reminder of the evolving tactics used by cybercriminals in the DeFi space. As phishing methods become more advanced, users must adopt proactive security measures and remain cautious when interacting with smart contracts and dApps [1].