The crypto industry saw a sharp decline in phishing-related losses in February, with total damages dropping by nearly 48% to $5.32 million, according to ScamSniffer. This marks the third consecutive monthly decline, down from $10.25 million in January and a staggering $23.58 million in December.
While this drop could indicate improved security measures and awareness among crypto users, phishing scams are still taking a toll, with over 7,400 victims losing funds last month. Some of the biggest losses stemmed from highly targeted scams, highlighting the evolving tactics of cybercriminals.
How Scammers Are Still Stealing Crypto
Despite the overall decline in losses, some attacks continue to drain large sums from unsuspecting users. One of the most damaging incidents involved address poisoning, where scammers manipulated transaction histories to trick users into sending funds to fraudulent addresses. This tactic led to a single victim losing $771,000 in Ethereum (ETH).
Another significant attack was a permit scam, which resulted in a $611,000 loss. Meanwhile, unrevoked phishing approvals on BNB Chain cost one victim $610,000, while an “IncreaseApproval” attack—where scammers trick users into raising token spending limits—drained $326,000 from a wallet.
Perhaps the most concerning case involved a user who unknowingly signed a phishing approval over a year ago, only to have their funds stolen recently. This incident underscores the importance of regularly reviewing and revoking old approvals to prevent future exploits.
Is Crypto Security Finally Improving?
Analysts suggest that the sharp decline in phishing losses could be a sign of better security awareness or simply fewer successful attacks. However, cybercriminals are still executing high-value scams, proving that the threat is far from eliminated.
In contrast, overall crypto-related losses surged in February due to two major hacks—the $1.46 billion Bybit breach and the $49.5 million attack on Infini. According to blockchain security firm Immunefi, these two incidents accounted for the bulk of the industry’s financial losses last month.
While phishing scams may be slowing down, the crypto space remains a prime target for hackers. Experts continue to emphasize the importance of security best practices, such as double-checking wallet approvals, avoiding suspicious links, and using hardware wallets for better protection.
As phishing losses decline, the question remains: Is the crypto community finally learning, or are scammers simply shifting their strategies?
