Prominent web3 security outfit Scam Sniffer reports that crypto investors suffered an increased number of phishing scams in August. Notably, total assets lost to these scams during the last month represent an estimated 72% increase from July, representing a concerning development for the general crypto industry.
For context, phishing often involves fake websites, malicious smart contracts, or deceptive wallet prompts that trick users into giving hackers access to their digital assets. Once approved or shared, the funds are usually stolen instantly and cannot be reversed.
While phishing attacks often target retail investors, August’s data from Scam Sniffer highlights the disproportionate impact on crypto “whales.” ScamSniffer revealed that the top three single incidents drained $3.08 million, $1.54 million, and $1.00 million, respectively, totaling $5.62 million. Collectively, these cases made up 46% of overall monthly losses, demonstrating how hackers increasingly focus on high-value wallets.
The August report also draws attention to a new wave of batch-signature scams enabled by Ethereum’s EIP-7702 upgrade. EIP-7702 temporarily allows externally owned addresses (EOAs) to function like smart contract wallets.
This means users can access smart contract–level features without migrating to a new address. With EIP-7702, actions such as batching multiple transactions, setting automated spending caps, or integrating passkeys become seamless for everyday Ethereum interactions.
However, malicious actors have now exploited this mechanism to trick users into authorizing malicious bulk transactions, often bundled with legitimate requests. In parallel, attackers continue to exploit direct transfer scams, luring victims into sending funds straight into phishing contracts.
These vectors are harder to detect than traditional phishing attempts, as they appear embedded within standard DeFi and NFT interactions.
