Recent reports from blockchain security firm Scam Sniffer reveal that address poisoning scams have recently cost two victims over $62 million. This type of attack, which preys on users' inattentiveness when copying and pasting crypto addresses, continues to be a significant threat in the digital asset space.

Address poisoning is a crypto scam where fraudsters send a small amount of cryptocurrency or an NFT to a user's wallet from an address crafted to resemble one the user frequently interacts with. The scammer's address is designed to closely mirror a recipient's legitimate address, often by matching the first and last few characters. This manipulation aims to deceive victims into copying the scammer's address from their transaction history when making a future transaction. Unknowingly, the user then sends funds to the scammer's address instead of the intended recipient.

Scammers often study a target's transaction patterns to identify frequently used addresses. They then generate new crypto addresses until they find one that closely resembles the target's common addresses. Once a convincing "lookalike" address is created, the scammer sends a small, seemingly harmless transaction from this address, effectively "poisoning" the target's address book.

The consequences of falling victim to address poisoning can be severe, as demonstrated by the recent $62 million losses. These scams are prevalent on blockchains with low transaction fees, such as Polygon, Tron, Tezos, Solana, and Binance Smart Chain, but can occur on any chain.

To protect against address poisoning, users must develop a habit of carefully verifying every single character of an address before sending a transaction. It is crucial to double-check the address each time, rather than relying on previously copied addresses or those stored in your transaction history.

The rise of address poisoning scams highlights the importance of vigilance and security awareness in the cryptocurrency world. Users are encouraged to stay informed about the latest scam techniques and to adopt proactive measures to safeguard their digital assets.