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Inferno Drainer Scam

‘Inferno Drainer’ Scam Sees Nearly $6 Million In Crypto Stolen

Dalmas Ngetich
by Dalmas Ngetich
2 years ago
·
Posted in Scams And Fraud
Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

A new scam dubbed the “Inferno Drainer,” has successfully siphoned off approximately $6 million from unsuspecting cryptocurrency users.

Scam Sniffer, a reputable company that monitors web-based fraudulent activities, uncovered this alarming trend, shedding light on the evolving landscape of scams targeting the crypto community.

Details Of The Scam

The Inferno Drainer offers fraudsters readily available code that enables them to steal cryptocurrencies, in exchange for a significant share, typically around 20%, of the ill-gotten gains.

Related Reading: Crypto Scam Story From Morocco Reveals BTC Purchases Gone Wrong

Scammers, targeting unsuspecting crypto holders, employ this scam-as-a-service model, resulting in substantial losses for victims who fall prey to their deceptive tactics.

1/ Inferno Drainer, a scam vendor specializing in multi-chain scams, has stolen $5.9 million in assets from nearly 4,888 victims through over 689 phishing websites targeting popular projects.https://t.co/OEjdzHm2Ls

— Scam Sniffer | Web3 Anti-Scam (@realScamSniffer) May 19, 2023

The discovery of the Inferno Drainer scam came to light when a security enthusiast known as 0xSaiyanGod, stumbled upon a booster for the service while perusing the Scam Sniffer Telegram channel. After reporting the con artist to the channel, 0xSaiyanGod’s actions triggered a swift response from the security agency, initiating an investigation into the matter.

Scam Sniffer’s investigation revealed a snapshot that captured a drain transaction exploiting a vulnerability called “Permit2,” which led to the loss of $103,000.

The Permit2 exploit leverages a streamlined version of the token approval procedure, allowing scammers to capitalize on unsuspecting victims. The snapshot provided critical evidence, including the transaction hash, which enabled the team to track down the address associated with the exploiter.

Further analysis by Scam Sniffer revealed that the identified address was linked to an alarming number of phishing websites, totaling over 689 since March 27, 2023.

These fraudulent websites targeted victims across multiple networks, including Ethereum, Arbitrum, Polygon, and BNB Chain, resulting in $5.9 million in stolen funds.

Polygon (MATIC) Price On May 21| Source: MATICUSDT On Binance, TradingView
Polygon (MATIC) price on May 21 | Source: MATICUSDT On Binance, TradingView

To substantiate their findings and provide transparency, Scam Sniffer created a dedicated dashboard on Dune analytics, showcasing the evidence and the process undertaken to reach these conclusions.

Scams In Crypto

Inferno Drainer didn’t stop providing scamming services; it even offered to construct custom phishing sites for clients in exchange for a 30 percent share of the profits.

However, this offer was selectively limited to “good customers” or those perceived to have significant potential for generating substantial revenues.

The rise of scams disguised as services has become a growing concern within the cryptocurrency ecosystem.

Last year, the “Monkey Drainer” phishing scam drained at least $1 million worth of ETH from users before it closed in March 2023.

Related Reading: Metaverse Scam Unraveled: Las Vegas Resident Charged In $45 Million Fraud Scheme

In 2021, the United States Federal Trade Commission (FTC) received over 7,000 reports of cryptocurrency scams, with losses totaling over $80 million.

In response, the agency has offered tips, including not clicking on unsolicited emails and even setting up a help page on their website and that of the Cybersecurity and Infrastructure Security Agency (CISA).

-Feature Image From Canva, Chart From TradingView
Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.
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Dalmas Ngetich

Dalmas Ngetich

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Dalmas is an experienced journalist with over a decade in Forex, general finance, technology, and blockchain developments. He is currently a crypto reporter for Bitcoinist, where he covers DeFi, blockchain, DeFi, and latest industry news. His work and that of his partners have been featured in top news outlets, including Forbes, investing.com, CoinTelegraph, and Entrepreneur, among others. He is passionate about technology and politics and is always on the lookout for the latest trends in these fields. He also loves spending time with his family and friends, exploring nature, and traveling to new places. Connect on X: @Dalmas_Ngetich, or message him directly on Telegram here: @Dalmas_Ngetich.

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