A recent case of an investor losing $3 million USDT highlighted the risks associated with cryptocurrency caused by human errors.
What Happened?
On Wednesday, the analytics firm Lookonchain reported that an investor fell victim to a phishing scam. The attacker lured the victim into signing a malicious transaction, draining $3.05 million in USDT from the wallet. This was not a system error—it was human error: one wrong click led to the loss of funds.
What is Crypto Phishing?
Crypto phishing resembles classic phishing attacks but with higher stakes. These attacks typically involve social engineering—fraudulent links or messages that trick users into giving up their credentials or signing malicious smart contracts. Unlike traditional banking fraud, there is no fraud desk or chargeback option in DeFi. Once the transaction is confirmed, the funds are gone without a trace.
How to Stay Safe?
It is important to keep in mind several simple rules to avoid such situations:
* Never sign a transaction you do not understand. * Verify **every single character** of a wallet or contract address. * Do not interact with links or dApps found on social media without checking the source. * Use wallets and interfaces that show complete contract details. * Regularly revoke past approvals using tools like Revoke.cash or Etherscan’s token approval checker.
Mistakes in cryptocurrency can be costly and even catastrophic. Education and vigilance can help keep your assets safe.
