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Scammers Target Phantom Wallet Users with Fake Pop-Ups Mimicking Genuine Updates

7 February 2025
in Crime, News
Reading Time: 3 mins read
114 3
Home News Crime

Cryptocurrency scammers have adopted a new phishing tactic targeting Phantom Wallet users by using deceptive pop-ups that appear to be legitimate update requests. 

Web3 security firm Scam Sniffer revealed that this sophisticated scam aims to drain user wallets by tricking them into providing sensitive information. The fake pop-ups prompt users to sign fraudulent “update extension” requests. Once they comply, the scam escalates by requesting seed phrases so that the attackers get full access to the wallet and its funds.

Unlike previous phishing attempts that mimicked Phantom’s website, this method directly connects to legitimate Phantom wallets, making the scam appear more convincing. Scam Sniffer advises users never to share their seed phrases and to update their extensions only through the official Chrome Web Store.

The firm also shared tips on how to differentiate genuine Phantom pop-ups from fraudulent ones. According to Scam Sniffer, deviations from these observed behaviours may be evidence of the scam’s tactic: 

  • Legitimate Phantom pop-ups behave like standard system windows that can be resized or minimized. Fake pop-ups remain confined to the browser tab.
  • Right-clicking is disabled on phishing pop-ups, preventing users from inspecting URLs. Genuine Phantom pop-ups allow right-clicking and always display a “chrome-extension://” prefix, which scammers cannot replicate.

This phishing scam is not the only issue Phantom Wallet users have encountered recently. A critical bug in a recent iOS update caused wallets to reset, locking users out and requiring them to re-enter their recovery phrases. Although the bug was later fixed, the incident raised concerns about the reliability of non-custodial wallets during unexpected disruptions.

Phantom was initially launched in 2021 as a Solana-based wallet, and it has since expanded to support Ethereum layer 2 Base and the layer 1 Sui network. The company has also demonstrated strong investor confidence, securing $150 million in a Series C funding round last month, with backing from Sequoia Capital, Paradigm, and a16z Crypto.

 

If you want to read more news articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram, and CoinMarketCap Community.

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Tags: PhantomScam sniffer
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