Crypto Phishing Scams Surge 72% — How to Keep Your Wallet Safe

Cryptocurrency has brought millions of people new ways to send, save, and invest money. But alongside these opportunities, it has also attracted criminals who are finding smarter ways to steal funds. One of the most worrying trends in 2025 is the sharp rise of crypto phishing scams.

In August 2025 alone, phishing attacks jumped by 72%, leading to over $12 million stolen from more than 15,000 victims worldwide. Security researchers are sounding the alarm, warning that the weekend could bring even more attacks as scammers continue to refine their tricks.

What Is Crypto Phishing?

Phishing is not unique to cryptocurrency. It has long been used in emails or fake websites to trick people into giving away passwords or bank details. In crypto, phishing takes on a more dangerous form, instead of just asking for login information, scammers try to trick users into signing fraudulent blockchain transactions. Once a victim signs these transactions, the scammer can instantly drain all the funds from the wallet. Because blockchain transactions are irreversible, the money cannot be recovered once stolen.

How Scammers Are Exploiting Ethereum

Most of the recent surge in phishing attacks has targeted Ethereum wallets and tokens built on the Ethereum blockchain (ERC-20 tokens). According to the security firm Scam Sniffer, criminals are taking advantage of EIP-7702, a technical feature meant to improve how signatures and permissions work on Ethereum. Scammers have found loopholes that allow them to disguise malicious requests as legitimate transactions. Unsuspecting users, often misled by professional-looking websites or links shared in online communities, end up approving these fraudulent requests. As a result, losses in August 2025 reached $12.17 million, up sharply from July.

On-chain investigations reveal that a few criminal groups dominate the wallet-draining business. Tools with names like Angel and Inferno are responsible for more than 60% of attacks. Angel even acquired Inferno in late 2024, consolidating its hold on this illegal market. These tools are effectively “scam kits” that allow even less-skilled criminals to launch phishing websites. Combined with AI-generated content, such as fake airdrops, deepfake videos, and realistic chatbots, the scams look more believable than ever.

Real-World Impact

The numbers are alarming. In one shocking case, a user lost $3 million worth of Tether (USDT) in a single click after approving a malicious smart contract without carefully checking the address.

This is part of a wider issue. According to Chainalysis, scams across the crypto industry generated $9.9 billion in illegal revenue in 2024, and losses could climb to $12.4 billion in 2025 as more fraudulent wallets are discovered.

These attacks are not only affecting everyday users. Even major platforms have fallen victim. The well-known ByBit exchange suffered a breach worth $1.5 billion, proving that both individuals and institutions face serious risks.

Phishing groups are not working in isolation. Platforms like Huione Guarantee have become hubs for selling scam infrastructure. Since 2021, they have processed $70 billion in transactions, many linked to fraudulent services. AI-driven scam tools on these platforms saw sales grow by an astonishing 1,900% in 2024, showing how quickly the criminal ecosystem is expanding.

How to Stay Safe from Phishing

Experts emphasize that most phishing scams succeed not because of technical flaws in blockchains, but because criminals exploit human trust and inattention. Protecting a crypto wallet requires both technology and awareness. Some of the most effective safety steps include:

• Use hardware wallets: These store private keys offline, making it much harder for phishing websites to steal them.
• Enable multi-factor authentication (MFA): Adding a second layer of protection, such as SMS or app-based codes, can block unauthorized access.
• Double-check addresses: Always verify that the wallet address or website is correct before signing any transaction. Even a small change in one letter can send funds to a scammer.
• Be cautious with airdrops and links: Free token giveaways are often used as bait. Avoid clicking unknown links or connecting your wallet to unverified platforms.
• Stay updated on scams: Following trusted security reports and official announcements can help identify new threats early.

As Scam Sniffer explains, “phishing exploits human trust, not just technology.” The best defense is a careful, skeptical approach whenever dealing with unfamiliar links, apps, or offers.

Timeline of 2025 Phishing Attacks

To understand how quickly phishing scams have escalated this year, here is a look at key incidents so far:

• Q1 2025: Criminal group CryptoCore uses deepfake videos during political inauguration events, stealing $4 million.
• March 2025: Phishing activity peaks, with $75 million stolen in a single month.
• June 2025: Total losses for the month hit $410 million across 132 major incidents.
• August 2025: Phishing surges 72%, with 15,230 victims and $12.17 million in direct losses.
• September 2025: Regulators begin pushing for stronger oversight as losses continue to rise.

The Road Ahead

The battle against phishing is far from over. On the one hand, blockchain transparency allows security experts to track stolen funds and identify scam wallets. On the other, scammers continue to evolve, using artificial intelligence and new blockchain features to trick users. The rising losses in 2025 show that technology alone cannot solve the problem. User education, regulatory frameworks, and personal responsibility all play a role in protecting funds.

For anyone holding cryptocurrency, the message is clear, scams are becoming more advanced, but simple precautions can make a huge difference. Staying alert, using secure tools, and verifying every transaction can mean the difference between keeping assets safe and losing them forever.