Crypto investors beware! The rise of crypto drainers, also known as wallet drainers, has caught the attention of Singapore authorities. In light of this growing threat, they have issued a cybersecurity warning to citizens to stay vigilant and protect their hard-earned funds.
Singapore Police Force Advises About the Dangers of Cyberattacks
Recently, the Singapore Police Force (SPF) and the Cyber Security Agency of Singapore (CSA) collaborated to issue an advisory to inform individuals about the dangers of cyberattacks perpetrated by crypto drainers, a particular type of malware targeting cryptocurrency wallets. Attackers often use this type of malware in phishing attacks, enabling cybercriminals to gain unauthorized access to users’ wallets and withdraw funds.
Singaporean authorities have expressed worry regarding the availability of commercial crypto-draining kits that enable amateur cybercriminals to access advanced malware with no initial expenses. These attackers operate using the drainer-as-a-service (DaaS) business model, wherein the service provider and attackers split a predetermined percentage of the stolen funds.
How do Crypto Drainers operate?
According to the advisory issued by the SPF and CSA, cyberattacks linked to crypto drainers begin with phishing campaigns. These campaigns usually involve hacking into popular social media accounts. Or sending deceptive emails to users using hacked databases of well-known service providers.
When unsuspecting victims click on the phishing links. They redirect them to a fake trading website that asks them to connect their Web3 wallets. Once they do so, a malicious smart contract injects into their system. Furthermore, allowing hackers to withdraw funds without further authorization.
The advisory mentioned that no such attack has been reported in Singapore so far. However, experts note that hackers are becoming increasingly drawn toward this practice. One of the popular commercial crypto drainers was MS Drainer. It was responsible for helping hackers steal a whopping $59 million worth of cryptocurrency back in 2023.
To make tracing difficult and reduce the chances of recovery, the stolen funds are usually transferred through services like cryptocurrency mixers.
Also Read- The Case for Bitcoin as a Long-term Investment Asset
Hard Wallets Against Cyber Threats
To protect against wallet drainer attacks and other cyber threats, Singaporean authorities have recommended the use of hardware wallets. However, this is among other precautions, for crypto investors. The advisory also urges individuals to conduct thorough research. Thereafter, to report any incidents to both the authorities and the crypto service providers to combat these types of attacks.
In the event of such attacks, victims must take immediate action by revoking any suspicious token approvals. Thereafter, transfer any remaining funds to a different and secure wallet address to prevent further loss of funds.
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