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Phantom wallet users targeted by fake update scam

Phantom wallet users targeted by fake update scam

Grafa2025/02/07 12:50
By: Liezl Gambe

Cryptocurrency scammers are employing deceptive tactics to target Phantom Wallet users, leveraging fake pop-up windows to steal seed phrases and drain wallets.

The attacks involve connecting to legitimate Phantom wallets and prompting users to approve a fraudulent "update extension" signature request.

Web3 security firm Scam Sniffer alerted users to the scheme, explaining that once a user approves the fake request, they are prompted to enter their seed phrase, granting scammers full access to their funds.

These pop-ups were initially limited to malicious websites mimicking Phantom's interface, but scammers are now connecting to real Phantom wallets to make the attacks more convincing.

To identify these malicious pop-ups, Scam Sniffer advises users to check the behavior of the window.

Genuine Phantom pop-ups act like system windows that can be minimised, maximised, and resized, while fake ones are confined within the browser tab.

Right-clicking links can also help, as phishing pages typically disable this function.

Additionally, legitimate Phantom pop-ups display a "chrome-extension://" prefix in the URL.

Phantom has implemented security measures to protect users, including transaction previews that scan transactions for suspicious activity and provide warnings.

These previews have scanned over 85 million transactions and prevented over 18,000 wallet-draining transactions.

Phantom also maintains an open-source blocklist of malicious domains to prevent users from connecting to harmful sites.

Phantom's revenue has increased amid the rising popularity of Solana-based (CRYPTO:SOL) memecoins.

Phantom's 24-hour revenue from fees has been around $470,000.

The platform has surpassed 10 million monthly active users and 850 million total transactions in 2024.

In January, Phantom raised $150 million in a Series C funding round led by Sequoia Capital and Paradigm.

Scam Sniffer reported that crypto phishing scams drained $10.25 million in January, with Ethereum (CRYPTO:ETH) users being the most affected.

Fake safeguard scams on Telegram have also surged, with attackers infiltrating legitimate crypto communities to deceive victims.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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