Hardware Wallets are Advised by Singaporean Police to Prevent currency Drainer

February 5, 2024

By Anjali Kochhar

Authorities in Singapore have warned residents about the growing prevalence of cryptocurrency drainers, also known as wallet drainers, which steal money from investors throughout the ecosystem.

A joint alert was released by the Cyber Security Agency of Singapore (CSA) and the Singapore Police Force (SPF) to increase awareness of cyberattacks that use crypto drainers, a kind of malware that targets cryptocurrency wallets. Crypto drainers are used by phishing attacks to steal money from users’ wallets without permission.

Commercial crypto-draining kits, which provide inexperienced criminals with sophisticated malware at no upfront expense, have drawn the attention of the authorities. As an alternative, attackers that employ the drainer-as-a-service (DaaS) model will divide the booty with the service provider according to a predetermined percentage.

Crypto-drainer-related attacks begin with phishing operations, as the SPF and CSA have noted. These tactics typically entail breaking into well-known social media accounts or sending fake messages to users from databases that have been compromised by big service providers.

When unsuspecting victims click on the phishing links, they are taken to a fake trading website where they are prompted to link their Web3 wallets. The victim’s system is then compromised with a malicious smart contract, which gives hackers access to take money from it without further permission.

The advisory states that there have been no reports of this kind of attack in Singapore. Nonetheless, hackers are now aware of the tactic. In 2023, hackers used MS Drainer, a well-known off-the-shelf cryptocurrency drainer, to help them steal $59 million worth of cryptocurrencies.

Cryptocurrency mixers and other services that prevent traceability are frequently used to siphon off stolen assets, drastically decreasing the likelihood of recovery.

In addition to other security measures, Singaporean officials advised using hardware wallets to guard against wallet drainer attacks. The advice urges Singaporeans to report any such event to the authorities and the cryptocurrency service providers, while also recommending cryptocurrency investors conduct extensive research.

About the author

Anjali Kochhar covers cryptocurrency stories in India as well as globally. Having been in the field of media and journalism for over three years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.

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