Investor Loses $1M in Crypto After Copying Fraudulent Address

Scam Sniffer has reported a recent case where an individual lost $1 million in cryptocurrency by mistakenly copying a fraudulent address from their transaction history.

This highlights the critical advice that users should avoid using their transaction history as a reference for crypto transfers.

In a similar incident from May, a trader fell victim to a scam by copying an incorrect address from their transfer history, resulting in a loss of $68 million in wrapped Bitcoin (wBTC).

These incidents are examples of address poisoning scams, where fraudsters exploit user carelessness. They generate vanity addresses that closely resemble those of their targets and send small transactions to these wallets.

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The goal is for the victim to accidentally copy the scammer’s address in the future. To protect against such scams, users are advised to always verify addresses carefully before making transfers.

Alexander Stefanov