INSUBCONTINENT EXCLUSIVE:
Investor lost millions in USDT phishing scam On May 26, 2025, a crypto investor fell victim to a series of
Crypto compliance firm Cyvers announced that the victim lost a total of $2.6 million worth of cryptocurrencies.It all started when the user
sent 843,000 Tether USDt (USDT) to an address other than the intended recipient
Just three hours later, the user sent 1.75 million USDT more to the same address
The result: All of it was lost in hours.But how did the user make this mistake? According to Cyvers, the user became the target of a
zero-value transfer scam.How does a zero-value transfer scam work?Zero-value transfer is a deceptive scam method that takes advantage of
user confusion and can be carried out with no private key access required.Crypto wallet addresses are made up of alphanumeric characters
Though the character count varies for each blockchain, it is never less than 26
Therefore, users usually resort to copying wallet addresses when sending cryptocurrencies.In zero-value transfer scams, malicious actors
abuse exactly this practice
They search through the targeted wallet and identify addresses it has interacted with
Scammers then create a vanity address that shares the same initial and last characters with an interacted address and send a transaction
As a result, the user unknowingly sends a transaction to the scammer with no way to recover the lost cryptocurrencies.A zero-token transfer
control of seed phrases or private keys.Did you know? The current crypto address landscape resembles the pre-Domain Name System (DNS) era of
Before DNS, users had to type numerical IP addresses to access websites
There are some blockchain solutions available that work similarly to DNS and make wallet addresses human-readable, such as Ethereum Name
Other tactics of crypto address poisoning Mimicking legitimate addresses is a widely used method for address
poisoning and can also be carried out by sending minimal amounts of crypto to the targeted address to gain credibility.Scammers also use
sophisticated tactics of crypto wallet phishing and ones that blend them with crypto hack methods, such as:?Impersonation: This method works
similarly to zero-value transfer; the difference is that attackers mimic high-trust entities like a public figure or a protocol rather than
randomly selected addresses
history to fool users who only glance at the start and end of an address
Social engineering strategies, such as impersonation on social media, may also accompany this method.QR codes: This tactic exploits the
convenience of scanning wallet addresses via QR codes by creating fake ones
Scammers distribute these fake QR codes through social media or stick them in physical locations to trick unwary users
QR codes may also lead to lookalike addresses of legitimate ones, making detection even harder.Interception through malware: This type of
address poisoning involves hacking through malware
coded and unaudited smart contracts are prone to address poisoning
Attackers can take advantage of bugs and flaws in the contract, such as improper input validation and reentrancy, to trick the contract into
using a fake address or change a critical variable mid-transaction
As a result, contract users could be sending crypto to the attacker rather than the legitimate address
The cost of crypto address poisoning attacks Address poisoning in 2025 has cost investors millions so far
February saw $1.8 million in losses, while March lost $1.2 million due to this crypto scam method
In May, a single incident surpassed the two aforementioned months with a $2.6-million loss.The attacks incur severe losses on major
blockchains like Ethereum and BNB Chain
Between 2022 and 2024, around 17 million addresses were poisoned on Ethereum, with zero-transfer attacks making up 7.2 million of the number
Out of these, 1,738 attempts became successful and caused users to lose nearly $80 million.Over the same period, BNB Chain was hit by nearly
230 million address poisoning attempts
Users of the blockchain suffered a total of $4.5 million in losses due to 4,895 successful attacks.The numbers reveal that address poisoning
is a serious threat that cannot be ignored
But how can users prevent being a victim of this scam tactic? How to stay safe against crypto address poisoning attacks
Address poisoning is a sneaky Web3 security threat that is hard to detect, but there are some precautions users can take to stay
safe.Of course, the most obvious safety measure is to make double-checking a habit
Always double-check the recipient wallet address entirely before signing a transaction.Other than this, users can take precautions, such
as:Using new addresses: Create new addresses for each transaction
This reduces the likelihood of becoming a victim of attackers who check transaction history to carry out crypto phishing.Keeping wallet
addresses private: Refrain from sharing your wallet addresses publicly
Such addresses are easier targets for malicious actors.Ignoring small transactions: Be cautious about small crypto transfers
There is a good chance they are addressing poisoning attempts.Using safe crypto wallets: Use a reputable wallet with phishing protection
Some wallets flag suspicious addresses or alert you when you paste a known scam address.Following updates: Monitor blockchain scam alerts
Platforms focusing on Web3 security, such as Cyvers, PeckShield and CertiK, as well as well-known figures like ZachXBT, provide timely
alerts about scams, hacks and suspicious activity that can help users avoid interacting with spoof addresses.Verifying addresses: Manually
verify wallet addresses when scanning QR codes
Avoiding scanning them from untrusted sources is also an effective measure.Using antivirus software: Install anti-malware software and
Tools like Wallet Guard or Scam Sniffer can block known malicious scripts and fake sites.Considering name systems: Use blockchain naming
system solutions whenever possible
Transacting with human-readable addresses is a safer option that significantly reduces the likelihood of address poisoning.Using safe smart
contracts: Use audited and thoroughly tested smart contracts to prevent being a victim of exploits.
