A crypto investor has fallen victim to the same scam twice, mistakenly sending $1.7 million to a wrong wallet address after previously losing $843,166 in a similar incident.
The repeated losses stem from a scam known as a “contaminated transfer history” attack.
This technique involves malicious actors sending small amounts of crypto to a victim’s wallet from scam addresses. These scam addresses then get saved in the user’s transaction history, making it easy for unsuspecting users to copy and reuse the wrong address when transferring funds.
Victim Reuses Contaminated Address, Loses $2.5M in Total Crypto Scam
In this case, the victim copied a previously used address from their wallet’s transaction history, assuming it was correct.
However, it had been contaminated, and the copied address belonged to the attacker. The result was another massive transfer to a scam wallet, bringing the victim’s total losses to over $2.5 million.
This incident highlights the critical importance of verifying wallet addresses manually and avoiding reliance on wallet history for large transactions.
As blockchain transactions are irreversible, even a small error—or a scam like this—can result in devastating financial losses. With such scams on the rise, users are urged to double-check every transaction and use trusted address books or secure contact lists instead of recent histories.
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Rising Sophistication in Crypto Scams Puts Even Experts at Risk
Crypto scams are becoming increasingly sophisticated, making it harder for even experienced users to detect and avoid them.
Attackers are no longer relying on basic phishing emails or obvious fake websites—instead, they’re using complex tactics like address poisoning, contaminated transfer histories, and smart contract exploits.
These scams manipulate the way users interact with wallets and blockchain interfaces, often exploiting trust in transaction history or familiar-looking addresses.
Some scams even involve malware that silently changes wallet addresses at the moment of transfer. Social engineering tactics have also become more advanced, with scammers impersonating trusted brands or individuals. As crypto adoption grows, so does the incentive for cybercriminals to innovate.
This evolution underscores the urgent need for users to exercise caution, verify every detail of a transaction, and adopt security best practices such as using hardware wallets and whitelisting addresses.
In today’s environment, even a small lapse in attention can lead to significant losses.
Experts Warn Crypto Users Against Unsolicited Messages and Verification Scams
Security experts are warning cryptocurrency users to stay extremely cautious when dealing with unsolicited messages, addresses, links, etc, especially those requesting verification codes or claiming urgent withdrawals.
These are common tactics used in phishing scams to trick users into revealing sensitive information or authorizing fraudulent transactions.
Scammers often pose as trusted platforms or support teams to create a sense of urgency and panic.
Experts advise users never to share verification codes, always double-check URLs and sender details, and enable two-factor authentication.
Vigilance and skepticism are essential, as even a brief lapse in judgment can result in the loss of funds or account access.
Also Read: Blockchain Security Firm SlowMist Warns of Fake Telegram Groups Running Phishing Scams