Scam Sniffer, a renowned platform dedicated to unmasking scams, dropped a bombshell last Friday, revealing the alleged mastermind behind thousands of crypto scams and the subsequent pilfering of millions of dollars. Meet Inferno Drainer, the notorious perpetrator believed to be responsible for a string of thefts across the largest blockchains, including Ethereum, Arbitrum, and BNB Chain.
Through meticulous analysis of both off-chain and on-chain data, the security firm has identified a staggering 4,888 victims who collectively suffered losses exceeding $5.9 million in cryptocurrencies and NFTs. Uncovering the extent of the scams became possible when a suspected member of Inferno Drainer, going by the name of “Mr. Inferno,” emerged in a Telegram group monitored by Scam Sniffer.
This breakthrough led to the discovery of a website shamelessly promoting the scammer’s services. Scam Sniffer explained that their platform, which provides Web3 malicious website scanning, played a pivotal role in linking the scammer’s activities together.
The modus operandi of Inferno Drainer involves the creation of fraudulent websites using their malicious software, which can be acquired for a fee ranging from 20% to 30% of the stolen assets. Since March 27 alone, Inferno Drainer is said to have generated a staggering 689 phishing websites, with potential activity predating this period.
Scam Sniffer labeled the operation as a “malware-as-a-service” product, offering both the software and malicious site hosting while charging a percentage based on the value of stolen assets. One unfortunate victim fell prey to Inferno Drainer’s scam, losing nearly $400,000 worth of assets, and even attempted to negotiate with the scammer, offering them a 50% cut of the stolen goods.
This recent revelation follows the discovery of a similar “Scam as a Service” entity known as Venom Drainer, which, according to Scam Sniffer, drained a massive $27 million from 15,000 victims. Among the high-profile targets were popular crypto brands like Pepe, Collab.Land, zkSync, MetaMask, and Nakamigos. In total, approximately 220 brands were exploited to deceive unsuspecting users.
While the crypto market has endured its fair share of bearish conditions, scams persist. A study by Crystal Blockchain revealed that 2022 witnessed a record-breaking 120 separate incidents of crypto fraud, marking a 28% increase compared to the previous year. However, the total value lost in 2022 was less than half of that in 2021, as the bear market took its toll.
Notably, the study highlighted that decentralized finance (DeFi) breaches have now become the most prevalent form of crypto attacks. As the crypto industry evolves, it becomes crucial for investors and users to remain vigilant and exercise caution when engaging with unfamiliar platforms or services.
Inferno Drainer and its malicious counterparts serve as a stark reminder that, in the world of crypto, security should always be a top priority. Stay informed, stay alert, and safeguard your digital assets against the flames of deceit.
