Significant Decline in Crypto Phishing Losses Despite Emerging Threats

By: Eva Baxter

In recent developments within the cryptocurrency landscape, there has been a notable decline in phishing attacks, with a significant reduction in financial losses related to such scams. According to a comprehensive analysis by Scam Sniffer, phishing losses in the crypto sector plummeted by 83% in 2025, amounting to approximately $83.85 million compared to around $494 million in the previous year. This drastic reduction is a result of increased security measures and the evolution of anti-phishing strategies that have been implemented across the crypto ecosystem.

The reduction in financial losses from phishing, while significant, comes with a caveat — attackers have shifted strategies instead of completely halting their activities. The number of affected wallets also fell, with approximately 106,000 incidents recorded in 2025, a decrease of about 68% from the prior year. Notably, fewer incidents topped the $1 million mark as attackers favored more frequent, low-value exploits rather than large-scale thefts. The largest reported theft in 2025 involved a malicious Permit signature attack valued at roughly $6.5 million.

Throughout the year, specific methods such as Permit and Permit2 signature abuses were responsible for substantial losses, indicating a shift towards exploiting user approval flows rather than direct vulnerabilities in smart contracts. Furthermore, the third quarter of 2025 saw heightened activity, with losses peaking alongside market fluctuations and Ethereum’s rally, illustrating a pattern where financially motivated criminals tend to capitalize on busy trading periods.

Despite the positive trend in loss reduction, cybersecurity experts caution that these improvements do not indicate the cessation of threats. Instead, they predict a cyclical nature to phishing losses that may increase during market rallies or with the introduction of new protocols, such as EIP-7702 batch signature techniques. Users and exchanges are urged to stay vigilant, employing tools to revoke approvals and conduct thorough checks on transaction requests, as personal responsibility remains pivotal in combating these evolving threats.

Overall, the crypto landscape is witnessing a transformation in its approach to security, backed by better wallet warnings and enhanced tracking by onchain monitors, though the persistent threat from phishing necessitates continued attentiveness from all crypto participants.