Crypto Phishing Losses Plummet to $84 Million in 2025, Down 83%
Crypto phishing attacks related to wallet hogging fell sharply in 2025, with total losses falling to $83.85 million, an 83% decline from nearly $494 million the year before. According to a new report from Web3 security platform Scam Sniffer, the number of affected users also fell to approximately 106,000, a 68% decrease year-over-year.
Crypto Phishing Losses Spike During Market Rallies, Report Warns
Despite the sharp decline, the report warned that phishing activity has not gone away. Instead, losses closely followed broader market cycles. Periods of increased on-chain activity were followed by spikes in phishing incidents, while losses eased in calmer markets. The third quarter of 2025, which coincided with Ethereum’s strongest rally this year, saw the highest losses at $31 million. August and September alone accounted for almost 29% of the annual total losses.
Scam Sniffer described phishing as a “probability function of user activity,” noting that higher transaction volumes tend to increase the number of potential victims. Monthly losses ranged from just $2.04 million in December, the quietest month, to $12.17 million in August, when trading activity peaked.
Crypto Phishers Shift from Large-Scale Heists to Mass Retail Attacks
Large-scale attacks became rarer: there were only 11 cases over $1 million in 2025, compared to 30 the previous year. At the same time, attackers appeared to be focusing on lower-value, higher-volume campaigns. The average loss per victim fell to $790, suggesting the focus is on retail users rather than isolated, high-profile thefts.
As reported, an attacker siphoned funds from hundreds of crypto wallets on Ethereum Virtual Machine (EVM) compatible networks, withdrawing small amounts from each address. On-chain investigator ZachXBT described this as a large-scale, low-value operation. While individual losses were limited and typically less than $2,000 per wallet, the scale of the incident suggests a coordinated campaign rather than an isolated breach.
For more information, you can read the full report from Scam Sniffer: https://cryptonews.com/news/wallet-drainer-phishing-losses-fall-to-84m-in-2025-down-83/
