According to MetaMask, a new wallet address scam that targets reckless copy-pasters is on the rise. In a series of tweets published yesterday, the MetaMask team warned unaware users of a rising sort of fraud known as “address poisoning.”
The initial and final four alpha-numerical combinations of a wallet address are taken out and used to generate a new, fraudulent address. The newly constructed bogus address then sends a $0 transaction to replace the matched address in your transaction history. Targets of address poisoning are crypto users that copy and paste addresses into their transaction history without performing a necessary further verification.
A portion of the crypto community reacted negatively to the security upgrade, believing that the world’s biggest crypto wallet provider may have moved too slowly to make it public. Twitter user Tuzun (0xTuzun), who warned the world about the event on December 2, 2022, provided more information on the type of assault and the number of wallets impacted.
Tuzun claims that since December 2022, more than 340,000 addresses have been poisoned, resulting in the theft of about $1.6 million from 95 victims’ wallets. The research estimates the entire cost of the assaults to be little more than $25,000, indicating a profit margin of more than 6,000%.
Tuzun’s results indicate that BSC and ETH addresses were exploited between the 22nd and 27th of November 2022, with a variety of attackers originating from parts of the Asian time zone.
Tuzun had utilized the on-chain monitoring tool Xplore to hunt down certain suspects, and he also suggested that MetaMask’s UI features be upgraded so that users may identify wallet addresses in transaction history by colour markers. It was also recommended that users verify the wallet address’s full alpha-numeric format, not just the first four numbers, before making any monetary transactions.
The poison address fraud adds to the increasing list of crypto sector scams that resulted in over $3.5 billion in losses last year.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.