- Inferno Drainer Fraud Operation
- Extent of Losses and Impact of the Operation
- Combating Fraud and Warnings
According to ScamSniffer, a large cryptocurrency holder suffered losses of over $32 million due to a transaction linked to the Inferno Drainer scam operation. This operation creates fake versions of popular DeFi applications, tricking users into handing over control of their wallets to scammers.
Inferno Drainer Fraud Operation
The Inferno Drainer service targets users and results in significant financial losses. Victims inadvertently share access to their wallets, making them vulnerable to theft.
Extent of Losses and Impact of the Operation
Dune Analytics panels from ScamSniffer indicate that the Inferno Drainer operation has stolen over $215 million from more than 200,000 victims. The operators take 20% of the cryptocurrency stolen from wallets.
Combating Fraud and Warnings
After being shut down by developers in November 2023, the operation resumed in May with new features. The crypto data platform LookOnChain has urged users to avoid clicking on unknown links and to be cautious about signing unfamiliar transactions.
As fraud becomes increasingly sophisticated, extra caution is necessary for cryptocurrency security. Users should employ anti-phishing software, enable two-factor authentication, and avoid clicking on suspicious files and links.