Key Takeaways
- Phishing scam alert: $675K USDT stolen via approval scam in 5 days.
- Gas token tactics exploited in revoking “fake approvals.”
- Increased cryptocurrency phishing calls for cautious token approval and address verification.
PechShieldAlert has released an update regarding a phishing scam. According to a recent tweet, it has been found that a phishing address has managed to steal a significant amount of USDT via an approval scam.
The Scam
According to the tweet, the address 0xC94a…5701 has committed a phishing scam, and it has successfully grabbed over $675K USDT within the past five days using the USDT Approval Scam tactic.
This scam is basically targeting individuals who have approved unlimited USDT spending on another address (0x575c…547d). Readers are urged to revoke the token permission as soon as possible.
Approval Scam
An approval scam is one where a scammer uses so-called gas tokens to steal money when victims revoke these “fake approvals” on a platform. This scam, however, is not the first of its kind. Previously, a scammer used a zero transfer phishing attack to steal $20 million of Tether (USDT) on August 1, 2023. The scammer, in essence, managed to deceive the victims and redirected the funds to a phishing address rather than the intended recipient’s address.
USDT issuer tether has frozen the victim’s wallet immediately upon detecting the scam. This rapid response, however, has raised questions about the security measures in place. After all, how did Tether manage to take action so swiftly?
Every single day, there is growing concern amongst users as the threat of approval scams and phishing attacks in the cryptocurrency space is increasing. It is important to remember that readers remain cautious when approving token spending and double-check recipient addresses before any transactions.
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