The world of cryptocurrency has unquestionably transformed how we view and engage with financial systems. However, because of its quick development and popularity, it has also caught the attention of criminals looking to take advantage of gullible users. The notorious Inferno Drainer, a maker of malicious software said to be behind a number of frauds that resulted in the theft of millions of dollars, is one such menace. Let’s examine this worrying development’s specifics and how it affects the crypto community.
The Rise of Inferno Drainer:
Inferno Drainer’s involvement in hundreds of fraudulent actions was recently revealed by ‘Scam Sniffer’, a well-known tool for scam detection. The security company discovered a stunning 4,888 victims who collectively lost more than $5.9 million in cryptocurrencies and NFTs by painstakingly examining off-chain and on-chain data from well-known blockchains like Ethereum, Arbitrum, and BNB Chain.
When a suspected member, going by the name “Mr. Inferno,” appeared in a Scam Sniffer Telegram channel, it became apparent how extensive the frauds carried out by Inferno Drainer were. As a result of this interaction, an inquiry was launched, and a website actively hawking the con artist’s services was found. Scam Sniffer states, “We have a product that provides Web3 malicious website scanning service for platforms, so we identify a lot of malicious websites.” The relationship between the scammer’s actions and the Telegram channel strengthened the case against Inferno Drainer.
A “Malware-as-a-Service” Product:
Clients with access to dangerous software that facilitates the building of fraudulent websites. The scammer demands a substantial fee, typically between 20% and 30% of the stolen assets, in exchange for their services. Although the true date of their operations may go back longer, Inferno Drainer has apparently constructed close to 689 phishing websites since March 27 alone.
In order to trick unwary customers, the scammers behind Inferno Drainer carefully chose some of the most well-known businesses in the cryptocurrency industry. Pepe, Collab.Land, zkSync, MetaMask, and Nakamigos are some of the projects that have been singled out, out of a total of about 220 brands that are thought to have been employed in their fraudulent schemes.
Even in a bear market, the frequency of cryptocurrency scams is still shockingly high. According to a recent survey by Crystal Blockchain, 2022 was the worst year ever for cryptocurrency fraud, with 120 unique occurrences documented, a 28% rise from 2021. However, as a result of the continuous bear market that began in May of the same year, the total value lost across all instances in 2022 was less than half that in 2021.
The Dominance of DeFi Breaches:
The study stated above found that decentralized finance (DeFi) breaches have become the most typical kind of crypto assault. DeFi platforms have become increasingly popular and complicated, making them perfect targets for bad actors looking for weaknesses to exploit.
The introduction of cryptocurrencies has created enormous opportunities as well as new concerns. The constant threat posed by con artists inside the cryptocurrency ecosystem is starkly illustrated by Inferno Drainer. Users must exercise caution and take the necessary precautions to protect their valuables. The identification and exposure of these bad actors is made possible by platforms like Scam Sniffer, which promotes a safer environment for all players in the crypto ecosystem. We can collectively fight the rising flood of cryptocurrency scams and safeguard the survival and integrity of this ground-breaking technology by staying educated and exercising due diligence.