Crypto Phishing Scams Surge to $12M Losses in August Amid Rising EIP-7702 Exploits

Phishing Scams in Crypto Spike to $12 Million in August

Phishing scams targeting cryptocurrency users resulted in losses exceeding $12 million in August, reflecting a 72% increase compared to July, according to data from Web3 anti-scam platform Scam Sniffer. The number of victims surged by 67% to over 15,000, with the largest single theft surpassing $3 million.

Rise of EIP-7702 Signature Scams

Scam Sniffer highlighted a notable escalation in scams exploiting Ethereum Improvement Proposal 7702 (EIP-7702). This protocol enables Externally Owned Accounts (EOAs) to function as smart contract wallets capable of executing transactions autonomously. Attackers leveraged this functionality in three separate incidents, siphoning more than $5.6 million in August alone.

Broader Crypto Security Landscape

Overall, malicious activities including phishing, hacks, and exploits drained over $163 million from crypto users during August 2025. These figures underscore the persistent and evolving threats within the cryptocurrency ecosystem, emphasizing the need for robust security practices.

Best Practices to Mitigate Phishing Risks

Phishing schemes often masquerade as communications from legitimate exchanges, employing fake websites with URLs closely resembling authentic ones or sending deceptive messages via email, text, and even physical mail. These tactics aim to extract sensitive information such as wallet seed phrases and account passwords.

Users are advised to:

• Verify website URLs carefully and use bookmarks instead of search engines to access exchange sites.
• Be suspicious of messages containing spelling or grammatical mistakes.
• Avoid clicking on links or downloading attachments from unknown sources.
• Use virtual private networks (VPNs) to conceal IP addresses and locations.
• Never disclose seed phrases or passwords.
• Enable two-factor authentication (2FA) on all sensitive accounts.

With losses from crypto hacks and scams surpassing $3.1 billion in the first half of 2025, vigilance and adherence to security protocols remain critical for users navigating the increasingly sophisticated threat landscape.