{"id":844,"date":"2024-01-08T11:56:48","date_gmt":"2024-01-08T16:56:48","guid":{"rendered":"https:\/\/domainsure.com\/?p=844"},"modified":"2024-01-08T11:56:48","modified_gmt":"2024-01-08T16:56:48","slug":"how-to-prevent-crypto-wallet-drains-300-million-stolen-in-2023","status":"publish","type":"post","link":"https:\/\/domainsure.com\/articles\/how-to-prevent-crypto-wallet-drains-300-million-stolen-in-2023\/","title":{"rendered":"How to Prevent Crypto Wallet Drains: $300 Million Stolen in 2023"},"content":{"rendered":"

According to <\/span>ScamSniffer<\/span><\/a>, a staggering $300 million was siphoned off from crypto wallets in 2023. It marks a significant rise in cyber crime with the anticipation of rising prices due to the upcoming Bitcoin halving event and Spot Bitcoin ETFs. The surge in crypto wallet losses due to phishing scams and wallet drainers has proven that despite innovations using blockchain currencies, much of the same old methods still work: fake sites, and phishing.<\/span><\/p>\n

As businesses safeguard their client\u2019s digital assets, there are several ways to protect clients, information, and any company’s future from crypto wallet drainers.<\/span><\/p>\n

The Scale of Wallet Drainers<\/b><\/h2>\n

In 2023, the crypto industry was rocked by a series of scams that led to a <\/span>staggering loss of $300 million<\/span><\/a>. This figure is not just a statistic; it represents a significant blow to the trust and security in the digital asset market.<\/span><\/p>\n

According to cycles, Bitcoin is scheduled for a bull market this year. So as news grows of the upcycle in coin prices, new coiners are entering the market unaware of the importance of privacy and protection. Cyber criminals are more than aware.<\/span><\/p>\n

Since the start of 2023, the amount of phishing sites using wallet drainers has only increased.<\/span><\/p>\n

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The growth in the number of crypto wallet drainers shows that the market for theft is an unresolved security gap many companies offering token storage have yet to solve. Not only are the amounts stolen growing, but the number of crypto wallet drainers are also increasing. In a legal industry, that would be called a \u201cgrowth market.\u201d<\/span><\/p>\n

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But $300 Million stolen isn\u2019t legal, that\u2019s theft. Here\u2019s how it works.<\/span><\/p>\n

How Crypto Wallet Drainer Scams Work<\/b><\/h2>\n

Wallet Drainers are a form of malware specifically designed to target cryptocurrency wallets. They work by tricking users into granting access to their wallets, often through phishing websites that mimic legitimate platforms. Once access is granted, these drainers transfer funds from the victim’s wallet to the scammer’s account.<\/span><\/p>\n

The system uses an old method: phishing. Phishing in the crypto world often involves creating fake websites or sending fraudulent emails that resemble those from legitimate sources. These sites and emails lure unsuspecting users into entering their private keys or wallet credentials, which scammers then use to access and drain the victims’ wallets.<\/span><\/p>\n

Beyond technical means, scammers also use social engineering tactics. They manipulate users into divulging sensitive information or performing actions that compromise their crypto assets. This could involve fake customer support, fraudulent investment opportunities, or impersonating trusted figures in the crypto community.<\/span><\/p>\n

How these Scams Impact Crypto Storage Companies and Others:<\/b><\/h3>\n