Inferno Drainer is a new scam whose creators have stolen almost $6 million in various cryptocurrencies and NFTs in just a few weeks. How does this scam work?
Scam Sniffer Investigation
Scam Sniffer is a platform that specializes in identifying scams. On Friday, it announced that the malware vendor is allegedly connected to thousands of scams that have led to the theft of several million USD.
Analyzing off-chain and on-chain data on Ethereum, Arbitrum, BNB Chain, and other blockchains, the company identified 4,888 victims. They collectively lost over $5.9 million in various cryptocurrencies and NFTs.
Around 1,699 ETH was reportedly stolen and distributed across five different addresses, each holding 300-400 ETH. The full scale of the fraud came to light when a suspected member of Inferno Drainer – alias Mr. Inferno – appeared in the Scam Sniffer Telegram group. This led to the discovery of a website promoting scammer services.
How does Inferno Drainer work?
Inferno Drainer took a fee of 20% to 30% of stolen assets in exchange for sharing its malware, while the malware itself was used to create fake online platforms.
Since March 27, Inferno has created nearly 689 phishing sites. The victim who suffered the most losses lost almost $400,000. According to Scam Sniffer, the victim tried to negotiate with the scammer, offering to keep 50% of the stolen assets.
The scammers impersonated websites of some of the most well-known brands in the crypto ecosystem, such as Pepe, Collab.Land, zkSync, MetaMask, and Nakamigos.
The scale of fraud in the cryptocurrency market
Despite the bear market, crypto scams are still common. A recent study Crystal Blockchain revealed that 2022 was the worst year on record for crypto scams, with 120 separate incidents. That’s a whopping 28% more than in 2021.
However, the total value of assets lost in all scams in 2022 was less than half of that in 2021. At that time, the total funds lost in crypto scams was $4.6 billion. Decentralized finance (DeFi) is by far the most common target for scammers.
How to protect yourself against phishing?
Phishing scams like Inferno Drainer pose a significant security threat to the cryptocurrency ecosystem. Phishing is a technique that cybercriminals use to steal confidential information – such as passwords or credit card details – by impersonating legitimate websites or services.
Cryptocurrency users need to be extra cautious when interacting online, avoid suspicious links, and always check if the site they are on is authentic. Remember, any time someone asks for your private keys, you can pretty much be sure it is a scam.
We strongly recommend using multi-factor authentication and securing your account with strong, unique passwords. Remember that the security of your crypto assets depends largely on you.
