Scammers Target Phantom Wallet Users with Fake Pop-ups and Steal Cryptocurrency
- Scammers use fake pop-ups to steal Phantom wallets
- Users should avoid entering seed phrases on suspicious websites
- Phantom grows and attracts more cyber attacks
Scammers are targeting Phantom wallet users with fraudulent pop-ups that mimic legitimate upgrade requests. The scam involves tricking victims into approving a fake upgrade extension and then asking them to enter their seed phrases, allowing the criminals to access and empty their wallets. Security platform Web3 Scam Sniffer has warned that these attacks have evolved from being restricted to malicious websites to connecting directly to real Phantom wallets, making the scam even more convincing.
🚨 UPDATE: Sophisticated Seed Phrase Phishing Tactic!
Scammers now connect to REAL Phantom wallets first, then trick users with a fake "update extension" signature request. After approval, a FAKE modal appears demanding seed phrases.
⚠️ REMEMBER: NEVER enter seed phrases… https://t.co/Nvq3qxySa0 pic.twitter.com/aYwJgGNsqB
— Scam Sniffer | Web3 Anti-Scam (@realScamSniffer) February 6, 2025
To trick users, scammers use pop-ups within the browser that mimic official Phantom notifications. Once the victim approves the fraudulent request, a new message appears asking for the seed phrase to “complete the update.” If provided, the criminals take control of the wallet and can transfer funds without restrictions. Experts recommend that users never enter their seed phrases on any website and only perform updates through official browser stores, such as the Chrome Web Store.
There are ways to spot these fake pop-ups. Genuine Phantom windows behave as a standalone system, allowing you to minimize, maximize, and resize them, while fraudulent ones remain stuck in a browser tab. Additionally, the URL of a legitimate pop-up displays the “chrome-extension://” prefix, which phishing pages cannot imitate. Another way to check for authenticity is to test the right-click function in your browser, as fraudulent sites often block this function to prevent users from inspecting suspicious links.
Phantom has become an increasingly frequent target for scams due to its rapid growth. As memecoins on Solana have become more popular, the number of users of the wallet has increased significantly. According to data from DeFiLlama, Phantom’s transaction fee revenue exceeded $470.000 in a single day, surpassing Coinbase Wallet. On January 19, the platform reached its all-time high, collecting $3,6 million in daily fees. As of 2024, Phantom has processed over 850 million transactions and surpassed 10 million monthly active users.
In addition to growing its user base, Phantom has also been expanding its capabilities. In February, the wallet added support for 16 new coins, expanding its compatibility to different blockchain networks. The previous month, the company raised $150 million in a Series C funding round led by Sequoia Capital and Paradigm, reaching a valuation of $3 billion.
As Phantom adoption increases, cyberattacks are also becoming more sophisticated. Experts warn that users should remain vigilant and follow security best practices to avoid falling victim to scams, and protect their cryptocurrencies from increasingly sophisticated threats.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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