Crypto Phishing Crashes 83% in 2025 — But Q3 Market Rally Triggers the Year’s Most Brutal Scam Losses

Crypto Phishing Report 2025: Losses Plunge 83%, But Scams Spike During Market Rallies

The global crypto industry recorded a sharp decline in phishing-related losses in 2025, marking one of the strongest improvements in digital asset security in recent years. However, despite the dramatic reduction in total losses, scammers have not disappeared. Instead, they have adapted, becoming more strategic, more technical, and increasingly synchronized with market momentum.

According to Scam Sniffer’s 2025 Annual Anti-Scam Report, total losses from wallet drainer phishing attacks across EVM-compatible blockchains fell to approximately $83.85 million, down from nearly $494 million in 2024. This represents an 83 percent year-over-year decline in financial damage. The number of victims also dropped significantly, falling to 106,106 wallets, compared to far higher figures in previous years.

At first glance, these numbers suggest a major victory for crypto security. Improved wallet warnings, enhanced detection systems, and rising user awareness have clearly reduced the effectiveness of broad, low-skill phishing campaigns. Yet a deeper look at the data reveals a more complex reality: scams remain highly active, particularly during periods of rising prices, and attackers are increasingly targeting high-value victims using advanced signing mechanisms.

Nyohoka Crypto reviews the key findings of the report and explains what they mean for users, developers, and the broader crypto ecosystem.

Crypto Phishing in 2025: Fewer Attacks, Smarter Strategies

Scam Sniffer’s data shows that mass phishing attacks declined sharply throughout 2025. Wallet-level security improvements played a central role in this shift. Modern wallets now flag suspicious contract interactions more clearly, limit dangerous permissions, and warn users when signing high-risk transactions.

Source: ScamSniffer X

As a result, attackers were forced to abandon many low-effort scams that previously relied on users blindly approving malicious links. Instead, phishing activity evolved toward more technical attack vectors, focusing on advanced signature mechanisms and exploiting new protocol features.

The report makes it clear that phishing has not ended. It has simply changed shape.

Year-by-Year Comparison Shows Strong Improvement

When comparing 2025 to previous years, the progress is unmistakable. Total losses dropped by 83 percent year-over-year, while the number of victims declined by approximately 68 percent. The scale of individual thefts also decreased dramatically.

Source: Website of Scam Sniffer

In 2024, the largest single phishing incident exceeded $55 million. In 2025, the biggest confirmed theft reached $6.5 million, a significant reduction that highlights the effectiveness of improved defenses. The average loss per victim also fell to around $790, suggesting that even when scams succeeded, their overall financial impact was lower.

This trend aligns closely with the maturation of wallet infrastructure and broader user education across the crypto ecosystem.

Market Momentum Still Drives Scam Activity

Despite the overall decline, Scam Sniffer’s quarterly data shows a strong correlation between phishing activity and market conditions. Losses increased noticeably during periods of rising prices and heightened trading activity.

Source: webisite

In the first quarter of 2025, losses reached approximately $21.94 million as markets remained cautious. Activity slowed further in the second quarter, with losses falling to $17.78 million. However, during the third quarter, a strong Ethereum rally triggered a surge in phishing attacks, pushing losses to $31.04 million, nearly 37 percent of the total annual figure.

By the fourth quarter, market momentum cooled, and losses dropped to $13.09 million, making it the quietest period of the year.

This pattern confirms a long-standing reality in crypto security: scammers are opportunistic. They strike hardest when optimism is high, volumes increase, and users are more likely to interact with unfamiliar platforms in pursuit of quick gains.

Monthly Trends Reveal Targeted Attacks

Monthly data further supports this conclusion. Losses ranged widely throughout the year, from just $2.04 million in December to $12.17 million in August. Nearly 30 percent of annual losses occurred in August and September alone.

Source: website

December recorded the lowest losses, coinciding with reduced trading activity and lower user engagement. November, however, stood out as an unusual case. While the number of victims declined, the average loss per incident increased, suggesting that attackers were targeting fewer but more valuable wallets.

This shift reflects a move away from broad phishing campaigns toward precision-based attacks designed to extract maximum value from individual targets.

High-Value Phishing Cases Tell a Clear Story

Only 11 phishing incidents in 2025 resulted in losses exceeding $1 million, together accounting for $22.98 million. While this is a small fraction of total incidents, it highlights where attackers are now focusing their efforts.

The largest single theft occurred in September, when a victim lost $6.5 million through a malicious Permit signature. Permit and Permit2 signatures were responsible for 38 percent of high-value losses, underscoring their continued misuse in advanced phishing schemes.

Source: website

Notably, new attack methods emerged following Ethereum’s Pectra upgrade. Two major incidents linked to EIP-7702 batch signature exploits resulted in losses of approximately $2.54 million in August. These attacks demonstrate how quickly scammers adapt to protocol upgrades, often identifying weaknesses before average users fully understand the changes.

Ethereum Upgrades Create New Attack Surfaces

While Ethereum upgrades aim to improve efficiency and user experience, they can also introduce new risks if misunderstood. The misuse of EIP-7702 batch signatures highlights how complex transaction flows can be weaponized against users who do not fully grasp what they are signing.

According to Scam Sniffer, attackers are increasingly relying on social engineering combined with advanced transaction structures, making it harder for victims to recognize malicious intent.

This trend reinforces the importance of continuous education and transparent wallet interfaces that clearly explain the implications of each signature request.

What the 2025 Data Really Tells Us

The 2025 phishing data does not suggest that scams are disappearing. Instead, it shows that low-quality attacks are declining while high-skill, high-impact scams are becoming more common. Fraud is no longer about volume alone. It is about timing, technical sophistication, and psychological manipulation.

Losses are no longer constant throughout the year. They spike during periods of excitement, when users are more likely to act quickly and lower their guard. This makes market rallies the most dangerous moments for crypto security.

Are Losses Truly Under Control?

While 2025 demonstrates that modern prevention tools work, the report also serves as a warning. Attackers evolve rapidly, and complacency can quickly reverse recent gains. Without continuous wallet updates, protocol-level safeguards, and user education, future bull markets could once again lead to massive losses.

Moreover, Scam Sniffer’s report focuses primarily on wallet drainer phishing. Other threats, such as private key theft, malware infections, fake browser extensions, and supply chain compromises, remain difficult to track and are not fully reflected in these figures.

Security in crypto can no longer focus solely on malicious links. It must address the entire user journey, from device security to transaction understanding.

Conclusion

Crypto phishing losses fell sharply in 2025, marking a major milestone in the industry’s fight against digital fraud. However, the emergence of advanced attack techniques, combined with market-driven surges in scam activity, proves that the threat remains serious.

As Nyohoka Crypto observes, the future of crypto security will depend not just on technology, but on awareness, transparency, and constant adaptation. Fewer scams during downturns do not mean fewer risks overall. When markets rise again, attackers will be ready.

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