In a serious incident that occurred on September 28, 2024, a trader suffered a huge loss of over $34 million after linking his digital wallet to a suspicious link. Hackers were able to exploit this major bug and withdraw the equivalent of 12,083 ETH of his funds. Transaction details show that the trader executed some operations with smart contracts labeled “Fake_Phishing,” indicating that he had fallen into a phishing trap.

How the attack happened:

This trader became a victim of a phishing attack after interacting with suspicious links, which are often promoted through untrusted channels. Once he linked his wallet to the scammer, the hackers gained access to his private keys, allowing them to transfer all of his assets to their own accounts.

Cautionary advice:

To avoid falling into such cyber traps, cryptocurrency traders should take the following precautions:

1. Avoid untrusted links: Do not interact with any links that come to you via social media or email unless you are sure of their source.

2. Checking smart contracts: Before dealing with any smart contracts, make sure they are legitimate and check them on trusted sites.

3. Use cold wallets: To store your funds securely, it is preferable to use cold wallets (which are not connected to the Internet) to reduce the chances of hacking.

4. Enable multi-factor authentication (2FA): Always enable two-step verification to protect your digital accounts.

Fintech offers us great opportunities, but it also carries great risks. Therefore, we must always be careful to avoid falling victim to scams that are becoming more sophisticated over time.