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This week, address poisoning scams have cost cryptocurrency users more than $1.6 million, marking one of the most severe weekly losses from this type of fraud. The method, which relies on manipulating wallet transaction histories, is becoming a major concern for crypto wallet security and has sparked conversations about stronger protective measures within the industry.
How Address Poisoning Scams Unfolded This Week
Address poisoning operates by inserting look-alike addresses into a wallet’s transaction history, tricking users into copying a fraudulent destination instead of the intended one. One of the most significant incidents this week saw a victim lose 140 ETH, valued at roughly $636,500, after copying a fraudulent address.
Additional high-value incidents included:
- A theft of $880,000 in USDT, caused by repeated fraudulent transfers.
- Other notable incidents included losses of $80,000 and $62,000, which, while smaller, remain substantial.
- Approximately $600,000 was stolen through signature spoofing attacks, in which victims unknowingly authorized spending via misleading prompts such as “approve” or “increaseAllowance.”
Also Read: Avoiding Crypto Scams: Your Safety Guide for 2025
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The Impact on Crypto Wallet Security and Prevention Steps
These incidents highlight growing weaknesses in crypto wallet security, especially in preventing transaction history manipulation. Unlike phishing emails, this scam takes place entirely within the wallet interface, making it harder for users to spot.
The surge in scam prevention crypto discussions shows the urgent need for more robust in-wallet warnings and tools that detect or block suspicious entries in transaction lists. Wallet providers are being urged to integrate automated alerts when addresses closely resemble previously used ones.
For users, best practices include:
- Double-checking every character of a wallet address before sending funds.
- Avoiding reliance on copy-paste from transaction history.
- Limiting approvals to trusted platforms to prevent signature spoofing attacks.
Also Read: Coinbase Loses $300K to MEV Bots After Costly Token Approval Error
FAQs
What are address poisoning scams?
They are scams where attackers insert fake wallet addresses into transaction histories, tricking victims into sending funds to the wrong address.
How much was stolen this week?
Over $1.6 million, with some of the largest single thefts exceeding $600,000 in ETH and nearly $900,000 in stablecoins.
How can crypto users protect themselves?
By verifying every wallet address before making a transfer, avoiding suspicious approvals, and staying informed about new scam tactics.
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