Crypto Users Lose Far Less To Phishing As Losses Drop 83% – Details

Overview

In 2025, cryptocurrency phishing losses experienced a significant decline, dropping by 83% compared to the previous year. Despite this reduction, experts warn that the threat of phishing scams has not vanished but has instead evolved, with attackers adopting new strategies in response to changes in protocols.

Decline in Phishing Losses

According to Scam Sniffer’s analysis for 2025, losses from wallet-draining phishing scams fell to approximately $83.85 million. This marks a substantial decrease from around $494 million in 2024. The number of wallets affected by these scams also dropped to about 106,000, representing a year-on-year decline of about 68%. These findings were highlighted in Scam Sniffer’s annual study, which received attention from major cryptocurrency news outlets.

Fewer Major Incidents

The analysis indicated that only 11 phishing incidents exceeded $1 million in losses in 2025, a notable decline from 30 incidents the previous year. Although fewer high-profile scams occurred, there was an increase in smaller-scale attacks. The largest theft recorded in 2025 was linked to a malicious Permit signature attack, amounting to roughly $6.5 million. The average loss per victim decreased to around $790, suggesting that attackers shifted their strategy towards more frequent, lower-value scams.

Market Activity Influences Losses

Phishing losses appeared to correlate with market activity, with the third quarter of 2025 recording the highest losses at approximately $31 million. This spike coincided with a rally in Ethereum, which attracted more users and on-chain approvals. Notable monthly peaks included August, with losses estimated at about $12.17 million, while December saw the lowest activity, with losses around $2 million. This pattern indicates that scammers are more active during busy trading periods.

Evolving Threats

Reports highlighted that malicious Permit and Permit2 signature abuses were significant contributors to the larger thefts, accounting for many multi-million dollar cases. Scam Sniffer also pointed out the use of EIP-7702 batch signature techniques in several complex attacks following network upgrades. Security experts noted that these methods exploit user approval flows, rather than traditional smart contract vulnerabilities.

Reasons for the Decrease

Analysts attribute the decline in phishing losses to several factors:

• Improved Wallet Warnings: Enhanced alerts have made users more vigilant against potential scams.
• Use of Approval Revocation Tools: Wider adoption of tools that allow users to revoke approvals has mitigated risks.
• Active On-Chain Monitoring: Increased oversight by on-chain monitors has helped in detecting and preventing scams.
• Reduced Market Froth: A less volatile market in certain periods has lowered the number of high-value targets for scammers.

Despite the drop in losses, experts caution that reduced totals do not equate to a safer environment. They believe that phishing scams could resurge during significant market rallies or when new signing features are introduced.

From Author

The significant drop in phishing losses is a positive sign for the cryptocurrency community, but the evolving nature of threats requires ongoing vigilance. Users must remain proactive in securing their digital assets, especially as attackers adapt their techniques.

Impact on the Crypto Market

• Decreased Losses: A substantial reduction in phishing losses may boost user confidence in cryptocurrency investments.
• Shift in Attack Strategies: Attackers are likely to adopt new methods, indicating that security measures must continuously evolve.
• Market Correlation: Phishing activity appears to increase during market rallies, suggesting that user behavior influences vulnerability.
• Increased Awareness: Enhanced wallet warnings and approval revocation tools may lead to a more informed user base, reducing the potential for future losses.
• Regulatory Scrutiny: As phishing tactics evolve, regulators and exchanges may increase oversight, affecting market dynamics and user practices.