 ▲ Hacking. Cryptocurrency trading/ChatGPT-generated image © |
The Pusaka upgrade, implemented to enhance the efficiency of the Ethereum (ETH) network, has paradoxically created a playground for hackers, resulting in massive losses amounting to $79.3 million.
According to investment media outlet FXStreet on March 13 (local time), blockchain explorer Etherscan has issued a strong warning over a sharp increase in address poisoning scams targeting Ethereum users. Address poisoning is a sophisticated tactic in which hackers use automated bots to generate fake wallet addresses that share the same beginning and ending characters as a user’s recent transaction addresses. They then send a small amount of less than $0.01 to implant the fake address into the victim’s transaction history.
These attacks have intensified since the Pusaka upgrade was applied to Ethereum last December. As network efficiency improved and transaction fees dropped, hackers have been able to generate large volumes of fake transactions at minimal cost. In the 90 days following the upgrade, small Tether (USDT) transfers under $0.01 surged 612%, from 4.2 million to 29.9 million transactions. USD Coin (USDC) and Dai (DAI) also recorded sharp increases of 473% and 470%, respectively.
Etherscan reported that from July 2022 to June 2024, approximately 17 million attacks were attempted against 1.3 million users, with confirmed losses reaching at least $79.3 million. Although the success rate of these scams is only around 0.01%, just a few successful attempts can generate substantial profits for hackers, prompting them to indiscriminately launch millions of attacks. On the BNB Smart Chain, where fees are even lower, the frequency of such attacks was found to be more than 1,300% higher.
Experts advise that to prevent address poisoning, users must carefully verify the entire wallet address before making transfers. Utilizing the Ethereum Name Service (ENS) or personal labeling features to store trusted addresses, as well as actively using whitelist functions, is also recommended for safety.
Currently, the Ethereum network is experiencing explosive growth, with active addresses and transaction volumes surpassing the 2021 bull market to reach all-time highs. Despite these positive indicators, its price has declined by more than 50% over the past 12 months and was trading at $2,120 as of Thursday’s report, up 3% from 24 hours earlier.
Disclaimer: This article is for investment reference only, and no responsibility is taken for investment losses based on this information. The content should be interpreted solely for informational purposes.