Address poisoning is done to deceive unwary users into sending valuable cryptocurrencies to the attacker's wallet address by mistake. To achieve this, threat actors use sophisticated software to create fake addresses that closely resemble the user's poisoned address, often sharing the same few beginning or ending characters.
When a user intends to make a transaction, they might inadvertently select the scam address from their wallet's transaction history, which now contains the unwanted zero-value tokens. This can lead to the user sending their funds to the attacker's address instead of the intended recipient.
Address poisoning scams are thus classified as phishing attacks. The unwanted tokens or the addresses receiving them cannot directly compromise the users' funds. However, unwanted non-fungible tokens (NFTs) may potentially compromise an address through interactions such as moving them between accounts or user profiles.
To mitigate the risks of address poisoning, users should avoid retrieving deposit or destination addresses from their transaction history. It is crucial to double-check each character of the destination address and ensure it matches the intended recipient's address when sending cryptocurrencies. Blockchain explorers play a crucial role to balance information and data across blockchains, and their stability and security is key to maintaining a robust crypto ecosystem.
Etherscan will still allow zero-value transfers to be viewed, but this must be manually enabled by a user through an option on the blockchain explorer's settings.
In a recent statement, Etherscan acknowledged the challenges in addressing scams and attacks, calling it "an infinite cat-and-mouse game." Between late November 2022 and February 13, 2023, zero-value token transfers resulted in a loss of $19 million from victims' wallets, according to a study conducted by Coinbase.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.