A PEPE token holder recently fell victim to a sophisticated phishing attack, losing $1.39 million worth of crypto after unknowingly signing a malicious Uniswap Permit2 transaction. Here’s what you need to know:

🔴 What Happened?

The victim inadvertently signed an off-chain Permit2 signature, granting the attacker unrestricted access to their wallet, according to cybersecurity firm ScamSniffer. Stolen assets included Pepe (PEPE), Microstrategy (MSTR), and Apu (APU) tokens, which were swiftly transferred to a new wallet just an hour after the approval.

⚠️ About Uniswap Permit2:

Uniswap Permit2 was initially introduced to simplify token approvals and save on gas fees. However, this feature has now become a common attack vector in the DeFi ecosystem, with scammers exploiting its off-chain signature mechanism to trick users into relinquishing control of their funds.

🚫 How Do Permit2 Phishing Attacks Work?

Scammers employ phishing websites or fake decentralized application (dApp) interfaces to lure victims into signing a malicious off-chain signature. The signature seems harmless but actually authorizes attackers to perform Permit and Transfer From actions, granting them control over the tokens. Since the approval occurs off-chain, users remain oblivious to any suspicious activity until it’s too late.

🔍 Why Is This Dangerous?

The off-chain approval process makes these attacks particularly insidious, enabling attackers to drain entire wallets with just a single signature. By default, Permit2 allows access to the entire token balance unless manually restricted—a step that many users often overlook.

📊 The Bigger Picture:

This incident is part of a growing trend of Permit2 phishing scams in the crypto space. Just this month, other victims have lost over $38 million in similar attacks, underscoring the vulnerabilities within the DeFi ecosystem. According to CertiK's Web3 security report, phishing and private key compromises accounted for the majority of crypto losses, totaling $343 million in damages.

🔐 Stay Safe in DeFi:

- Always double-check the permissions you’re granting before signing any transaction, especially off-chain.

- Use secure wallets and enable additional security features.

- Stay updated on the latest phishing tactics and avoid clicking on suspicious links.

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