In a serious incident that occurred on September 28, 2024, a trader suffered a massive loss of over $34 million after linking his digital wallet to a suspicious link. Hackers exploited this bug and were able to withdraw 12,083 ETH of his funds. Transaction details showed that the trader had interacted with smart contracts with names like “Fake_Phishing,” suggesting that he had fallen victim to a phishing scam.

How the attack happened: The trader fell victim to a phishing attack after interacting with suspicious links, which were often promoted through untrusted channels. Once his wallet was linked to the scammer, the hackers were able to access his private keys, making it easy for them to transfer his funds to their own accounts.

Preventive Tips: To avoid falling into such electronic traps, cryptocurrency traders should take the following precautions:

1. Avoid untrusted links: Avoid interacting with any suspicious links received via email or social media unless you are sure of their source.

2. Checking smart contracts: Before dealing with any smart contracts, check their legitimacy through trusted sites.

3. Use cold wallets: To store your funds safely, 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 make sure to enable two-step verification to protect your digital accounts.

Fintech offers tremendous opportunities, but it also carries significant risks. So it is imperative that we are vigilant to avoid falling victim to scams that are becoming more sophisticated as time goes on.