Address Poisoning Scams Cost Crypto Users Over $1.2 Million in March 2025

• Address poisoning scams led to $1.2M losses in March 2025, exploiting nearly identical wallet addresses.
• Weak security and lack of real-time verification leave crypto users vulnerable to scams.
• Experts call for AI tools and whitelists to combat rising phishing and address poisoning threats.

Address poisoning attacks on cryptocurrency through phishing scams exceeded $1.2 million in  March 2025. Attackers who conduct address poisoning send small transactions to victims using wallet addresses that nearly match trusted ones. Users who copy-paste addresses from their transaction history into sending boxes expose themselves to the possibility of committing accidental fund transfers to the wrong addresses.

According to the recent report, Cyvers reported that address poisoning scams continue to rise after victims suffered total losses of $1.8 million during February according to its security analysis. As crypto scammers become more skilled, attacks continue to grow because security measures on wallets and platforms remain inadequate.

Lack of Pre-Transaction Security Measures

Scammers exploit the lack of real-time transaction verification during pre-transaction processes to execute their schemes. Transaction systems operating through cryptocurrency lack native functionality to stop poisoned addresses from completing transactions. CEO Deddy Lavid of Cyvers observed that popular automated crypto transaction systems lack essential verification functions which leaves users exposed.

Crypto enthusiasts have experienced an ongoing bull Market, which has triggered an increase in phishing scams. Because of elevated transaction volumes, attackers have more opportunities to execute fraudulent schemes. Real-time address screening systems would decrease phishing attacks while blocking unauthorized transfers to deceitful addresses.

Growing Threat of Crypto Phishing Scams

The cryptocurrency sector experiences a generalized increase in phishing scams, with address poisoning as one component. Review findings show that phishing attacks caused $1 billion in losses through 296 incidents in 2024. The pig butchering scam, which employs extended manipulation schemes, has resulted in billions of dollars in losses by attacking investors.

Security experts suggest double-checking wallet addresses before transactions and implementing AI security tools and whitelists for known and trusted addresses. Cryptocurrency users face rising financial losses because of an increasing number of phishing attacks which demands better security measures.