Phishing, Social Engineering, and Wallet Drainers

What you'll learn

• Why Social Engineering Wins
• Phishing: The Most Common Attack
• Pig Butchering: The Long-Game Scam
• Building Defensive Habits
• For Deeper Reading

Key terms

Phishing

Fraudulent communications (email, SMS, DMs, fake websites) that appear legitimate but are designed to steal credentials or trick users into harmful actions.

Wallet drainer

Malicious dApp or smart contract that, when interacted with, drains all approved tokens or assets from a victim's wallet. Inferno Drainer and Pink Drainer are dominant 2024 platforms.

setApprovalForAll

An ERC-721/ERC-1155 function that grants permission to move ALL tokens of a specific type. Frequently abused by drainers to take all NFTs at once.

Permit2 (Uniswap)

An off-chain signature standard that authorizes token spending without an on-chain transaction. Convenient but a major attack vector when phished.

Pig butchering / Sha zhu pan

A long-game romance-investment scam that builds emotional connection over months before pivoting to fake investment platforms. FBI estimates $4-5B+ annual losses.

SIM swapping

An attack transferring your phone number to a SIM controlled by the attacker, defeating SMS-based 2FA. Why hardware tokens or authenticator apps are preferred.

Hardware token / U2F (YubiKey)

A physical USB device that produces cryptographic 2FA tokens. Phishing-resistant: cannot be tricked into producing tokens for fake sites.

Authenticator app (TOTP)

Apps like Google Authenticator, Authy, or 1Password that produce time-based one-time passwords. Stronger than SMS but weaker than hardware tokens.

revoke.cash

A web tool for reviewing and revoking token approvals across many networks. Periodic use is part of basic hygiene.

Scam Sniffer

A browser extension that warns users about known phishing domains and suspicious dApps. Among the standard defenses.

Burner wallet

A separate wallet with minimal funds, used for experimental or risky dApp interactions. Compromise of the burner does not affect main holdings.

Whitelisted withdrawal addresses

A security feature on many exchanges that restricts withdrawals to pre-approved addresses, often with a time delay. Limits damage if the account is compromised.