As crypto market conditions turn bullish, the number of decentralized applications (DApps) using the notorious Inferno Drainer tool has increased threefold as scammers ramp up their efforts to steal people’s crypto.
According to data from Web3 security firm Blockaid, the number of new Inferno Drainer DApps deployed had increased to 40,000 by the end of July 2024. Oz Tamir, from the Blockaid team, told Cointelegraph that the number of new malicious DApps using the tool has increased threefold.
Malicious DApps using Inferno Drainer skyrocketed to 40,000 by the end of July. Source: Blockaid
“At the beginning of the year, we saw about 800 new malicious Inferno Drainer DApps per week. Now, that number has tripled to 2,400 per week,” Tamir explained.
Inferno Drainer rises as Pink Drainer shuts down
Crypto drainers are phishing tools designed specifically for crypto. These applications allow phishing scammers to access wallets by tricking users into signing token approvals. Ultimately, this gives the malicious actors a way to steal their funds.
The Inferno Drainer helped steal $70 million before claiming to have shut down in 2023. However, the scam-as-a-service tool resurfaced and has become increasingly active this year.
Inferno Drainer (red) grows as Pink Drainer (yellow) shuts down. Source: Blockaid
While the Inferno tool seems sophisticated, Tamir believes it’s nothing special and says it’s just a tool currently available to scammers. The security researcher explained that scammers often switch tools depending on whatever’s available:
“To be honest, we don’t think that Inferno has any specific capabilities that make it stand above others. Scammers often choose their drainer based on what is available at the moment and what commission is taken by the drainer.”
Tamir believes the increase correlates with increased scam attempts across different threat actors. The Blockaid researcher explained that at the start of 2024, they saw a weekly average of 180,000 malicious scan results.
Related: Inferno Drainer fails attempt to launder ETH — ‘not welcome’ in Railgun
Increase in scammers tied to the bull market
Tamir also believes the trend is tied to the current bull market conditions the crypto space has experienced in the last few months. The Web3 researcher explained:
“As more users and money are entering the ecosystem, attackers are increasingly motivated to invest in new, novel attacks.”
The researcher added that attackers are also capitalizing on new chains being deployed. Tamir claims these new chains have “lesser security measures in place” and believes that attackers see them as an opportunity to make a quick buck.
Magazine: Inside Pink Drainer — Security analyst defends his crypto scam franchise