[//]:content-type-MARKDOWN-DONOT-DELETE ![](https://gimg2.gateimg.com/image/article/17303433661690791857hotspot.jpeg) ## [TL; DR] On 18 October some bad actors breached the Eigenlayer X account and posted phishing links. During Q3, 2024 more than $314 million was stolen through crypto phishing scams In September a single crypto phishing scam led to a loss of cryptocurrencies valued at around $32.43 million. ## Introduction Bad actors in the crypto sector are becoming more daring and innovative in order to steal from unsuspecting individuals. Frauds, hacks and phishing scams are some of the means the malicious actors are using to steal cryptocurrencies. However, the players in the decentralized digital sector are promoting unity to prevent or reduce incidences of crypto thefts. Today, we discuss how scammers used phishing to trick crypto users. ## Eigenlayer Suffers Another Phishing Scare On 18 October bad actors breached Eigenlayer’s X account in a bid to steal cryptocurrencies from its users through phishing. They wanted to capitalize on Eigenlayer’s history of successful airdrops. After taking over the [Eigenlayer](https://www.gate.io/learn/articles/a-comprehensive-interpretation-of-eigenlayer-a-new-favorite-project-both-loved-and-hated-by-ethereum/1784 "Eigenlayer") X account the scammers posted a message purporting that the blockchain has another airdrop. They claimed that all the users who were eligible during the previous airdrop round should participate in the current one. They included a link through which the Eigenlayer users would claim the airdrop. Nevertheless, the link directed the users to the scammers’ phishing site. PeckShieldAlert, the blockchain security firm, was the first to alert crypto users about the fake airdrop program. In its scam alert on X, PeckShieldAlert warned the crypto users not to click on the provided URL links . ![](https://gimg2.gateimg.com/image/article/17303435381.jpeg) PeckShieldAlert Scam Alert - x.com/PeckShieldAlert After the PeckShieldAlert X post alerting the crypto community about the phishing scam, Eigenlayer informed its members about the development. It said, The @EigenLayer handle has been compromised. Please do not engage with any suspicious links and actively double-check and verify you are engaging with 'eigenlayer.xyz.' An update will be provided once secured.” If the two crypto firms had not acted quickly many members of the Eigenlayer X community might have been defrauded. This is because the scammers used a sophisticated method of obscuring the link. For example, its scammers' message had a seemingly legitimate image of the Eigenlayer restaking website, including its blog URL. This is because the attacker added an antiscam image onto the tweet thread to enhance its credibility. Also, the scammers used several versions of the scam link. They rotated the URLs to avoid easy detection. It is vital to note that the purported airdrop came several weeks after the official season 2 stakedrop had ended. Read also: [Exploring the Re-Staking Potential of EigenLayer](https://www.gate.io/learn/articles/exploring-the-re-staking-potential-of-eigenlayer/4069 "Exploring the Re-Staking Potential of EigenLayer") The good thing is that there was quick scam link detection. As a result, the scammers’ post was removed within a short time. The popularity of the Eigenlayer, the second biggest protocol on Ethereum network, has resulted in [many phishing scams](https://www.gate.io/blog/1425/What-is-phishing-and-how-to-protect-ourselves-from-phishing-attacks "many phishing scams") So far, the protocol had two phishing scams in October alone. First, on 4 October, the team announced that it was investigating an “unapproved selling activity” that involved an address ending with “f10D.” Eigenlayer purported that the wallet had sold about 1.6 million of [EIGEN tokens](https://www.gate.io/how-to-buy/eigenlayer-eigen "EIGEN tokens") valued at around $5.7 million. However, on 5 October the team informed its X community that the transaction was a result of a crypto hack. Read about [Risk Management at Eigenlayer](https://www.gate.io/learn/articles/eigenlayers-risk-management/1955 "Risk Management at Eigenlayer") ## The Growing Threat of Social Media Account Takeovers and its Effects on the Crypto Sector The Eigenlayer X account hack highlights the growing threat of social media account takeovers and phishing. A recent report by Security.Org has shown that cases of account takeovers among residents of the United States have increased by 29% since 2021. In the report it identified ways of preventing social media account takeovers. They include the use of strong unique passwords, enabling security questions and the use of multi-factor authentication. In the crypto sector some scammers trick the users to connect their digital wallets to fraudulent services. If someone connects his/her crypto wallet to the phishing websites the scammers drain their digital assets. In that situation there won’t be any need for any authentication. On the other hand, if the fraudsters take over accounts of crypto projects they may use them to advertise fake investment programs and airdrops. Such attacks are mostly successful because they are carried out on trustworthy social media platforms such as the Eigenlayer’s X profile. ## Prevalence of Phishing Scams in Crypto According to Chainanalysis, approval phishing - where the victims have been tricked into conducting malicious transactions - has resulted in theft of billions of digital assets that include cryptocurrencies and NFTs. Social media platforms owned by legitimate crypto projects are the scammers’ main targets. For example, some impostors use deceptive links in comments in social media platforms of well-known crypto projects. In September crypto phishing scams resulted in the loss of $46 million worth of cryptocurrencies. During this period over 10,800 victims were affected. On the other hand, over $127 million worth of cryptocurrencies were stolen in Q3, 2024 due to phishing. The biggest crypto phishing scam in September led to the loss of crypto assets valued at around $32.43 million. Read also: [Common phishing methods and security prevention suggestions in Web3](https://www.gate.io/learn/articles/common-phishing-methods-and-security-prevention-suggestions-in-web3/3061 "Common phishing methods and security prevention suggestions in Web3") ![](https://gimg2.gateimg.com/image/article/17303437712.jpeg) The Biggest Crypto Phishing Incident in September 2024 - x.com/scamsniffer In the above case, the victim lost 2,083 spWETH. During September the bad actors mainly targeted Optimism, MATIC and Polygon. Another report by Scam Sniffers shows that more than $314 million worth of cryptocurrencies were stolen through phishing scams during Q3, 2024. ![](https://gimg2.gateimg.com/image/article/17303438003.jpeg) Incidences of Crypto Phishing Scam in Q3,2024 - Scam Sniffer As the above figures show, more than $314 million worth of digital currencies were stolen. On the other hand, 266, 713 individuals were affected. Of note is that most of these are approved social media losses. This calls for the need for individuals to improve their crypto account safety. One way of achieving this is to avoid clicking links from unknown parties. On the other hand, crypto project teams should ensure that there is very low chances of social media phishing. For instance, they can assign people to keep a close eye on all activities on their social media platforms. The following graph depicts the trend regarding phishing scams. ![](https://gimg2.gateimg.com/image/article/17303438344.jpeg) Phishing Scams Trend in 2024 - Scam Sniffer As seen in the above graph, the level of crypto phishing scams has remained very high. This shows the need to improve blockchain security. In fact, both crypto projects and users should adopt approved and tested crypto security measures. ## Conclusion On 18 October some malicious actors hacked the Eigenlayer X account. As a result, they advertised a fake EIGEN airdrop in a bid to steal from the users. In their post they included a link to their phishing website. However, both PeckShieldAlert, the blockchain security firm, and Eigenlayer were able to notice the hack. Thus, they alerted the crypto community of the development. Also, Eigenlayer removed the post and the accompanying links within a short period. ## FAQs on Phishing Scams ### What happened to the Eigenlayer X account? The Eigenlayer X account was compromised through sophisticated phishing tactics, leading to the dissemination of scam links hidden behind legitimate-looking preview images. ### How did hackers hide scam links in the Eigenlayer X account hack? Hackers obscured scam links by utilizing X's platform design to display a preview image of the legitimate Eigenlayer website, misleading users with the appearance of authenticity. ### What are the risks of social media account takeovers in the crypto space? Social media account takeovers, like the Eigenlayer X account hack, pose significant risks including the spread of phishing scams, loss of user trust, and potential financial losses due to deceptive practices. ### How prevalent are phishing scams in the cryptocurrency community? Phishing scams have become increasingly prevalent in the cryptocurrency community, exploiting the trust users place in official channels to disseminate malicious content and conduct approval phishing, leading to billions in losses since 2021. ### How can users protect against phishing attempts on platforms like X? Users are advised to verify information through multiple channels, exercise caution when interacting with links, and remain vigilant for signs of phishing, such as misleading previews or unexpected requests for information or approvals. ### How can users identify and avoid phishing links on social media platforms? Users can identify and avoid phishing links by carefully examining URLs, avoiding clicking on unsolicited links, and checking the authenticity of the message source before engaging with any content. ### What are approval phishing scams and their impact on the crypto industry? Approval phishing scams trick victims into signing malicious transactions, leading to unauthorized access and financial losses. Such scams have significantly impacted the crypto industry, with billions lost since 2021. ### What recent statistics highlight the severity of hacks in the crypto space? Recent statistics from PeckShieldAlert report over 200 major hacks in the crypto space in the first half of 2024 alone, resulting in approximately $1.56 billion in losses, of which only a fraction was recovered.

Author: Mashell C., Gate.io Researcher

\*This article represents only the views of the researcher and does not constitute any investment suggestions.

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Eigenlayer X Account Got Compromised: Beware of Phishing Scams