A terrible phishing assault has cost one Chainlink (LINK) holder an astounding $4.66 million in bitcoin, which is a depressing turn of events. A well-known data analytics company called Lookonchain revealed the incident in a tweet, detailing the sad fate of a holder who witnessed 275,700 LINK tokens—worth $4.42 million—disappear in a devious phishing scheme.
Between June 7, 2022, and October 14, 2023, the victim painstakingly amassed 290,750 LINK tokens, worth at $2.26 million, by trading on many markets. With the market going well, this astute investor had made about $2.4 million in profit. But when the person unintentionally confirmed a transaction by clicking on a phishing link, the windfall quickly turned into a nightmare.
https://x.com/lookonchain/status/1740628771961774490?s=20
The severity of the incident was summed up in a tweet by Lookonchain, which said that the LINK holder was tricked into signing the approved transaction after inadvertently clicking on the phishing link. In the end, it was shown that the individual lost $2.4 million in earnings and $2.26 million in expenses, for a total loss of $4.66 million.
Prevalence of approval phishing scams
The event is a clear warning of the risks associated with phishing attempts in the bitcoin domain. According to a new analysis from blockchain analytics platform Chainalysis, since May 2021, at least $1 billion in cryptocurrencies has been stolen through the use of approval phishing schemes. According to the research, victims of approval phishing attacks lost an estimated $516.8 million in 2022 alone, which is a worrying trend.
Compared to the $374.6 million in data from 2023 through November, this was a notable rise. Under the guise of approval phishing, individuals are tricked into authorising transactions without realising it, which results in unapproved financial transfers. To carry out these assaults, cybercriminals frequently take advantage of human mistake and faith in links that appear trustworthy.
With the cryptocurrency community still reeling from this prominent phishing attack, professionals in the field are advising users to be cautious and adopt strong security protocols to protect their digital assets. The latest Chainlink event should serve as a lesson, highlighting the importance of continual education and awareness on the changing strategies used by bad actors in the bitcoin space.
