Crypto Investor Loses $1.06M to Phishing Scam

Navigating security threats is one of the most essential skills crypto users need to master. A recent phishing exploit highlights how increasingly crafty social-engineering tactics can ensnare investors.

According to a report by blockchain security firm ScamSniffer on X, a crypto investor recently fell victim to a phishing scam. The tragic incident resulted in the loss of approximately $1.6 million in stablecoins.

🚨 ALERT: Someone lost $1.06M worth of $sUSDf and $USDe after signing multiple phishing signatures. 💸 pic.twitter.com/prfx0n7i7x

— Scam Sniffer | Web3 Anti-Scam (@realScamSniffer) July 18, 2025

A phishing scam refers to a type of cyberattack where criminals impersonate trusted entities to trick victims into revealing sensitive information. This information may include credentials, private keys, or access to accounts that can be used for theft or fraud. These attacks often exploit users’ urgency, fear, or curiosity to trick them into clicking on links or opening attachments.

Approximately $1.06M Lost

According to the blockchain security firm, the attacker manipulated the victim to sign multiple phishing signatures. The funds lost included the stablecoins sUSDf and USDe, collectively valued at $1.06 million.

In a similar incident, a crypto trader lost $340,117 worth of USD0++ after signing a “Permit” phishing signature. This attack exploits the ERC-20 permit system (EIP-2612) or its extended version to trick users into granting token transfer permissions. The scammer uses it to authorize & withdraw your tokens.

Typically, the attacker lures users to a phishing page that appears to be a legitimate decentralized finance (DeFi) application. A dangerous aspect of this attack is that there are no visible approvals in the victim’s wallet history, making it a stealthy operation.

A Growing Threat

Phishing remains the most prevalent form of crypto fraud. These attacks have resulted in multi-million-dollar losses in the cryptocurrency industry. They will likely continue to do so as more investors fall victim to their deceptive tactics.

Certain practices need to be cultivated to safeguard your crypto assets. One of which is always double-checking the URL of the site or application you are interacting with to ensure it’s legitimate. Avoid clicking on links from unknown or suspicious sources.

Another precaution is to use reputable and trusted wallets. Ensure you download wallets and extensions from official sources, such as the provider’s website or verified app stores. Additionally, utilize any security features provided by your wallet to add an additional layer of protection.

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