Crypto Scammers Awaken: Back Pulls A Danger Again

Crypto hackers have recently woken up again after relatively few crypto investors saw their money go up in smoke through scams in the first quarter. In April and May, however, the hackers were very active again and more than $ 150 million was stolen. Blockchain security firm Beosin has now announced that the amount of crypto lost to so-called back pulls exceeded the amount stolen through DeFi exploits.

$45 million in crypto back pulls

A back pull is a popular way for scammers to make off with investors’ money. The literal meaning is “to pull the carpet under one’s feet” and this analogy describes the fraudulent activity very well.

A back pull occurs when someone or a group of people completely drains a liquidity pool, making it impossible for investors to trade their tokens and as a result are stuck with a worthless mountain of crypto coins.

From the data from Beosin shows that in the past month, losses due to back pulls exceeded $45 million, spread over 6 incidents. At the same time, there were 10 exploits on DeFi protocols that brought the scammers a total of $19.7 million. This amount is down nearly 80 percent from April, and losses from these types of exploits had been falling for two months, according to the blockchain security firm.

The biggest back pull, also known as an exit scam, of the past month was from Morgan DF Fintoch. On May 24, the company managed to make a whopping $31.7 million.

The $7.5 million flash loan exploit of Jimbos Protocol was the biggest DeFi exploit of the past month. Hackers made off with a total of four thousand ethereum (ETH).

Advice to crypto investors

Beosin’s article also advised crypto users to “raise their anti-fraud awareness”, due diligence on a project before investing and learning how to better protect their crypto.

Beosin also warned against using shared or public mobile phone charging devices, as they may be modified to inject malicious programs that private keys can compromise.

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