Malicious attack on the poisoning of the address cost users $12.3 million

Sophisticated address poisoning attack leads to significant losses on the Ethereum network. According to information from NS3.AI, the victim of the scam was about to transfer funds to a verified legitimate address but was deceived and instead sent the funds to a fake address that looks visually similar. In this way, the attackers seized digital assets worth $12.3 million.

How Address Poisoning Attacks Work

Address poisoning attacks are among the most insidious threats in the cryptocurrency ecosystem. Attackers create fake addresses that closely resemble legitimate user or well-known institution addresses. Victims often fail to notice the slight difference in the string of characters and trust that they are sending funds to the correct destination. Once the funds are sent to the fraudulent address, retrieving them is practically impossible.

Security Challenges in Ethereum Transactions

This incident highlights the ongoing security risks associated with cryptocurrency transactions, as noted by the analytics company Cyvers Alerts. The Ethereum ecosystem and other blockchains require increased user vigilance because the irreversibility of transactions makes such attacks particularly dangerous. Users should always carefully verify addresses before sending funds and prefer using address directories instead of manually entering addresses to minimize the risk of falling victim to this type of attack.