Phantom Wallet Users Targeted by Sophisticated Phishing Scam

Phishing scammers have launched a new campaign targeting users of the Solana-based crypto wallet Phantom, attempting to gain unauthorized access to private keys through deceptive pop-ups disguised as legitimate update requests.

Fake Updates and Seed Phrase Requests

On February 6, Web3 scam detection platform Scam Sniffer issued a warning on X, alerting Phantom users to a coordinated phishing attack. According to the platform, scammers connect to real Phantom wallets and trick users by generating a fraudulent “update extension” signature request.

If unsuspecting victims approve the request, a prompt appears, demanding the input of the wallet’s seed phrase. Once entered, this sensitive information grants scammers full control over the wallet, enabling them to drain funds.

This isn’t the first such attack. In late January, Scam Sniffer flagged similar malicious pop-ups on fake websites imitating Phantom’s user interface. These deceptive prompts urged users to share their wallet seed phrases under the guise of establishing a secure connection.

To help users detect fraudulent attempts, Scam Sniffer advised right-clicking on suspicious links. Genuine Phantom pop-ups do not block this action, while phishing pages typically restrict it. Additionally, Scam Sniffer emphasized that legitimate Phantom windows display “chrome-extension” in their URLs and behave like system windows that can be minimized, resized, or maximized — unlike fake pop-ups trapped within browser tabs.

Phantom Grows

The increasing adoption of Phantom amid the rising popularity of Solana-based memecoins has made it a prime target for attackers. According to DeFiLlama, Phantom’s 24-hour revenue from fees recently stood at approximately $470,000, surpassing that of Coinbase Wallet. On January 19, Phantom achieved a record-breaking $3.6 million in daily revenue.

As of 2024, the platform claims to have more than 10 million monthly active users and over 850 million total transactions. On January 17, Phantom secured $150 million in a Series C funding round, achieving $3 billion valuation.

Despite its successes, Phantom has faced challenges, including rumors of a token airdrop. In January, the platform firmly denied speculation that it would launch a token alongside its upcoming social discovery feature.

As phishing scams evolve in complexity, the crypto community continues to stress the importance of vigilance.