Fake LayerZero airdrop drains victims’ wallets

A recent phishing attack involving a fake LayerZero airdrop targeting Twitter users has drained multiple crypto wallets.

In a recent tweet, the security firm Certik advised users to be careful about any airdrops. They further said that the fake giveaway is being promoted on Twitter by accounts impersonating Layer Zero.

The tweets include links to a fake LayerZero website. When users click on the links, they are taken to a website that looks like the official LayerZero website.

The fake platfrom asked users to connect their cryptocurrency wallets to claim their airdrop. Once users connected, the website drained their wallets of all cryptocurrency holdings.

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Crypto scams on the rise

According to the recent Chainalysis Crypto Crime 2022 Report, crypto-related crimes saw a staggering global increase of 79% in 2021. In just one year, illicit addresses received a staggering $14 billion.

The Federal Trade Commission (FTC) further revealed that between January 2021 and June 2022, over $1 billion in cryptocurrency was lost to various scams, impacting more than 46,000 individuals who reported losses. Among these crimes, scams emerged as the highest-revenue form of cryptocurrency-based criminal activity, and their overall revenue continues to be significant in 2023.

Numerous crypto scams have inflicted significant financial harm on market participants in recent years. One such example is the infamous OneCoin scam, estimated to have led to losses exceeding $25 billion. This makes it one of the most substantial cryptocurrency scams ever recorded.

Another notable case is the BitConnect scam, which caused investors to suffer losses totaling around $4 billion. Additionally, the Bitclub Network scam is believed to have resulted in losses reaching up to $722 million.

Other crypto scams, such as fake bitcoin investment schemes, rug pulls, romance scams, phishing attacks, and fraudulent employment offers, have also been recorded in recent years.

Interestingly, cryptocurrency frauds, such as pig butchering (a fraudulent scheme promising high returns), have become increasingly common and represent a significant portion of scams. Cryptocurrency-related fraud saw a staggering 183% increase from 2021.

As the cryptocurrency industry progresses, governments globally are intensifying their endeavors to establish regulations that mitigate risks and safeguard investors. Notable events, including the collapse of FTX and regulatory measures taken against exchanges like Binance, have emphasized the necessity for robust oversight.