Surge in Phishing Scams on Base Coincides with Memecoin Craze

Phishing Thefts on Ethereum Layer-2 Chain Base Skyrocket

Ethereum layer-2 chain Base has experienced a staggering increase in funds stolen through phishing scams, with a nearly 1,900% surge since January. According to data from blockchain anti-scam platform Scam Sniffer, approximately $3.35 million was stolen on Base in March alone, marking a 334% increase from February and a significant rise from January’s $169,000 loss.

Comparison with BNB Chain

The BNB Chain, operated by Binance, has also seen a similar uptick in phishing scams in March. Overall, the crypto industry faced $71.5 million in losses to phishing scammers across all chains in March, surpassing the previous months’ figures.

Tactics and Trends

Scam Sniffer highlighted that fake X (formerly Twitter) accounts sharing phishing links remain a primary tactic for scammers. The platform detected over 1,500 such incidents in March. The increase in phishing scams on Base is occurring alongside a memecoin craze on the Coinbase-backed chain, which has pushed Base’s total value locked to over $3.2 billion, a 370% increase so far in 2024.

Hacks versus Phishing

While phishing scams are on the rise, crypto hack thefts have seen a decrease, falling 48% to $187.2 million in March, according to blockchain security firm PeckShield. This decrease is partly due to the recovery of $98.8 million in stolen funds during the month, including a significant recovery from the $97 million Munchibles exploit.

Notable Hacks and Recoveries

Notable incidents include the loss of $40 million from Curio’s MakerDAO-based smart contract and an $11.6 million hack targeting Prisma Finance. Negotiations are currently underway with the hacker for the return of the stolen funds from Prisma Finance.