A victim who lost 1,807 liquid staked Ether (ETH), valued at $6.91 million, in a phishing scam on May 26 has successfully recovered 80% of the stolen funds. The phishing group, Inferno Drainer, reportedly returned the majority of the funds while retaining a 20% bounty.
Details of the Phishing Attack
The victim’s wallet was compromised in a sophisticated permit phishing attack. In such an attack, a malicious actor generates an off-chain authorization signature to transfer tokens from a wallet they do not own. This technique allows attackers to bypass traditional security measures and gain unauthorized access to victims’ assets.
Recovery of Stolen Funds
The surprising recovery of 80% of the stolen Ether highlights the complexities of the cryptocurrency landscape, where even stolen assets can sometimes be partially recovered. Inferno Drainer, the group responsible for the phishing scam, returned the majority of the funds to the victim, keeping a 20% bounty for themselves.
Preventive Measures Against Phishing Attacks
Blockchain analytics firm has highlighted the importance of using authorization tools to prevent such attacks. They recommend tools like RevokeCash and Scam Sniffer’s Permit2, which help users identify and revoke any abnormal authorizations.
RevokeCash
RevokeCash is a tool designed to help users manage and revoke token approvals that they have granted to various smart contracts. By regularly reviewing and revoking unnecessary permissions, users can reduce the risk of unauthorized access to their funds.
Scam Sniffer’s Permit2
Scam Sniffer’s Permit2 is another tool aimed at enhancing security by identifying and revoking suspicious authorizations. This tool specifically targets the types of off-chain authorization signatures used in permit phishing attacks, providing an additional layer of protection for users.
The recovery of 80% of the stolen Ether is a rare and fortunate outcome for the victim of this phishing scam. It underscores the importance of using security tools and staying vigilant against phishing attacks in the cryptocurrency space. By utilizing authorization management tools like RevokeCash and Scam Sniffer’s Permit2, users can better protect their assets and prevent similar incidents in the futur
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