What are address poisoning attacks in crypto and how to avoid them?
Address poisoning attacks in cryptocurrencies deceive users into sending funds to malicious addresses that closely resemble legitimate ones. Common techniques include phishing, transaction interception, fake QR codes, and address spoofing, exploiting human error rather than blockchain vulnerabilities. Victims often suffer significant losses, with confirmed losses exceeding $83 million. These attacks can disrupt blockchain operations and degrade user trust. Notable incidents include a $2.6 million loss from a zero-value transfer scam and a $68 million loss from a single address-poisoning attack. To mitigate risks, users should rotate addresses, utilize hardware wallets, exercise caution with public addresses, choose reputable wallets, implement whitelisting, and regularly update wallet software. Blockchain analytics tools can aid in detection by identifying suspicious transaction patterns. Immediate reporting of suspected attacks can also protect the wider crypto community.
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