Crypto phishing losses fell 83% in 2025, but wallet drainers and “approval” scams still hit users in 2026

TL;DR (3 bullets)

• Reported crypto phishing losses declined sharply in 2025, but wallet drainers and token “approval” scams continue to affect users in 2026.
• Most modern thefts rely on tricking you into signing something (a transaction, message, or token approval) rather than “hacking the blockchain.”
• If you suspect a drainer or bad approval, act quickly: stop interacting, move remaining funds to a safer wallet, revoke approvals, and preserve evidence.

Problem overview

Industry reporting suggests crypto phishing losses fell substantially in 2025 (often summarized as an “83% drop”), but that doesn’t mean scams went away. Instead, tactics shifted toward high-conversion lures that target wallet signing behavior: malicious dApps (“wallet drainers”), fake support chats, counterfeit airdrops, and “verify your wallet” prompts that lead to dangerous approvals.

In 2026, many victims aren’t entering seed phrases into obvious fake websites. They’re approving token spending, signing deceptive messages, or confirming transactions they don’t fully understand—often on mobile, in a hurry, or while following step-by-step instructions from a convincing impersonator.

Why it happens

1) Approvals are confusing by design. Token approvals (commonly “approve” or “permit”) are legitimate features that let apps spend your tokens. Scammers abuse them by asking for approvals that are unnecessary, overly broad, or tied to malicious contracts.

2) Wallet prompts can be hard to interpret. Many wallet pop-ups show limited context: contract addresses, generic function names, or unreadable data. Users may click “Confirm” because it looks like a login step.

3) Impersonation is cheap and effective. Fake accounts, cloned websites, and lookalike QR codes can mimic real brands. Scammers push victims to “act now” to claim a reward, fix an issue, or avoid losing access.

4) Cross-chain and new-token complexity. Multiple networks, token wrappers, and bridging create more opportunities for confusion. Attackers exploit unfamiliar chains and new assets where users have less intuition about normal behavior.

Solutions (numbered)

1. Freeze interaction and isolate the risk.

   Stop connecting your wallet to unknown sites, disconnect active sessions in your wallet settings, and avoid signing anything else “to fix it.” If you believe a wallet is compromised, consider it unsafe for future storage.

2. Move remaining assets to a safer wallet.

   Create a new wallet (ideally protected by a hardware wallet) and transfer remaining funds promptly, starting with the most valuable assets. If you must keep the old wallet for investigation, treat it as “burned.”

3. Revoke suspicious token allowances.

   Use a reputable allowance management tool or the token’s official ecosystem tooling to revoke approvals you don’t recognize. Focus on high-value tokens and any “unlimited” approvals. Revocation can cost network fees, and it does not reverse theft that already happened.

4. Check for signature-based permissions.

   Some scams rely on signed messages (including permit-style signatures) rather than on-chain approvals. Review recent signatures and connected sites. If your wallet app supports it, inspect recent dApp connections and remove anything unfamiliar.

5. Preserve evidence and report through official channels.

   Save transaction hashes, timestamps, screenshots of chats, domain names (written down, not clicked), and wallet addresses involved. Report impersonation to the platform where you saw it, and contact the legitimate project’s official support channel (found via their verified website or app, not via a link sent to you).

Prevention checklist

• Verify the destination: type addresses manually or use bookmarks you created yourself.
• Assume DMs are hostile: ignore “support” messages that you didn’t request.
• Read the wallet prompt: be wary of approvals, “set approval for all,” and unlimited allowances.
• Use a hardware wallet for meaningful funds and keep a separate “hot” wallet for experimenting.
• Limit allowances: approve only what you need, then revoke later.
• Slow down: urgency is a common manipulation tool.
• Keep devices clean: update OS/browser, avoid unknown extensions, and lock down your primary email.
• Maintain records: note your normal balances and keep a habit of checking approvals periodically.

FAQ (5 Q&A)

1) If phishing losses fell in 2025, why are people still getting drained in 2026?

Aggregate loss estimates can decline while specific scam types remain active. Attackers adapt: when obvious seed-phrase phishing becomes less effective, they shift to approvals, drainer contracts, and impersonation—techniques that can still work against careful users who are rushed or misled.

2) What is a wallet drainer, in plain terms?

A wallet drainer is typically a malicious app or website that persuades you to sign transactions or permissions that let an attacker transfer your assets. It often looks like an airdrop claim, mint page, staking portal, or “verification” flow.

3) What does an “approval scam” look like?

Common patterns include: requesting an unnecessary token approval before you can “claim,” asking for unlimited spending allowance, or presenting a vague prompt that looks like login. The harm happens when the attacker later uses that approval to pull tokens from your wallet.

4) Can I reverse a scam transaction?

Usually not. Most public blockchains are designed to be irreversible once confirmed. Your best options are to secure remaining funds, revoke approvals where applicable, preserve evidence, and report to relevant platforms or compliance teams if a centralized service is involved.

5) What evidence should I save if I might pursue recovery or reporting?

Record the wallet address, transaction hashes, token contract addresses, the exact text of messages received, screenshots of the site or chat, and any identifiers used by the impersonator. Keep notes on how you arrived there (search, ad, DM). Avoid interacting further with the scammer.

Key takeaways (3 bullets)

• Modern crypto phishing often succeeds through signatures and approvals, not by “breaking” blockchain security.
• Fast containment matters: disconnect, move remaining assets, revoke allowances, and document everything.
• Prevention is procedural: verify through official channels, minimize approvals, and separate wallets by risk.

Sources

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