Introduction

Wallet Drainers belong to the recently introduced dangers for owners of cryptocurrencies when criminals manage to deceive people and obtain access to their wallets in order to take away the money stored there. In most cases, no hacks of the blockchain itself are required from criminals because they use phishing, fake websites, and social engineering techniques.

In 2024, the problem of wallet drainers became even more relevant than before. Chainalysis reports that there was a considerable growth in the revenues of crypto drainers as the amount of funds they managed to steal grew by about 170% compared to the last year. The same report states that there were 75% more deposits made via drainers. Another recently conducted research proves that approval phishing is quite common as well.

It is especially important to discuss this issue since it can be quite hard to spot such attacks as they look like normal interactions on the web3 platform. Users might think that they participate in an NFT claiming or token sale or interact with some kind of DeFi product. The issue comes from the moment when the user’s wallet receives a transaction approval which grants attackers access to transfer money.

Knowing about these types of scams will allow people to prevent such attacks.

Key Takeaways

• Crypto wallet drainers utilize malicious websites, contract tricks, and social engineering for cryptocurrency asset theft.
• Most often, cyberattacks do not start with attacking a blockchain directly but with phishing.
• Phishing with fake airdrops, minting NFTs, customer support accounts, and sponsored promotions is quite common.
• Approval of an operation allows a fraudster to spend particular tokens from the wallet.
• Using hardware wallets is one way to increase safety; however, they cannot secure malicious transactions approved by users.
• The verification of a website and careful wallet prompts are two measures that need to be taken.
• When a malicious transaction has been made, timely actions can prevent further losses.

Why Wallet Drainers Are a Growing Threat

The wallet drainers are turning out to be increasingly well-organised participants in the crypto-scam ecosystem. There is no longer a need for every hacker to craft his or her own malware or smart contracts. In fact, some may simply avail themselves of drainer services and phishing infrastructures already available to them.

According to Check Point Research in 2025, a new campaign of Inferno Drainer had attacked over 30,000 wallets over six months with damages of at least $9 million through Discord-based phishing and transaction signing. 

In the meantime, the whole of the crypto fraud is turning increasingly convincing. Chainalysis estimated that there were at least $14 billion in inflows into crypto scams and fraud schemes in 2025, with the total likely to exceed $17 billion as further illicit addresses come to light. The AI-enabled scams proved to be 4.5 times more profitable than regular scams.

It does not imply that all of the wallet connections are dangerous, but scammers get increasingly skilled at masking their malicious activity.

What Is a Wallet Drainer?

Definition

A wallet drainer is a piece of malicious software or smart-contract infrastructure designed to help criminals take crypto assets from a victim’s wallet.

In many cases, the drainer does not need to know the user’s seed phrase. Instead, it takes advantage of permissions granted when the victim signs a malicious transaction.

For example, a website may ask a user to approve access to a particular token. The user may think the approval is needed to claim an airdrop. However, the approval can allow another address to spend those tokens from the wallet. For more information on crypto security risks, users can also explore Bitavolt.

This is commonly known as approval phishing. Chainalysis describes it as a scam where the victim signs a transaction that gives a malicious address permission to spend tokens held in the wallet. 

How Wallet Drainers Work

The basic idea is simple. The criminal creates a convincing website or online message and gets the victim to interact with it.

The website may show a familiar logo or use language that looks official. After connecting a wallet, the victim receives a transaction request. If the user approves it without understanding what it does, the attacker may gain permission to move assets.

The actual theft can then happen through blockchain transactions. Because many blockchain transactions cannot simply be reversed, recovering the stolen assets can be difficult.

Why They Target Web3 Users

Web3 applications are built around users connecting their own wallets and signing transactions. This gives users more control, but it also means they are responsible for understanding what they approve.

Attackers take advantage of this model. Rather than trying to break through a major exchange’s security system, they can target individual users with a fake website, social-media post or message.

The growing value held in personal wallets is another reason they are attractive targets. Chainalysis reported in 2025 that compromises of personal wallets represented 23.35% of stolen-fund activity in its year-to-date data. 

How a Wallet Drainer Attack Happens

Fake Website or Advertisement

The attack often begins with a fake website. A scammer may copy the design of a legitimate crypto project and create a similar-looking domain.

Another common route is an advertisement. A user searching for a real project may see a sponsored result that leads to a fraudulent website.

Social media is also widely used. Attackers can post fake announcements or compromise accounts to make their links appear more trustworthy.

Wallet Connection Request

The fake website then asks the user to connect a crypto wallet.

Connecting a wallet does not automatically mean that the wallet has been drained. The more important step is what happens after the connection.

The site may ask the user to sign a message or approve a transaction. This is where users need to slow down and examine the request.

Malicious Transaction Approval

The victim is shown a transaction that may appear to be part of a normal activity, such as claiming tokens or minting an NFT.

The transaction may actually grant the attacker permission to spend specific tokens.

This is why simply looking at the amount being paid is not enough. A transaction that appears to cost little or nothing can still contain a dangerous approval.

Asset Transfer

After the required permission is granted, the attacker can use it to move assets from the victim’s wallet.

The victim may notice several unexpected transactions. In some cases, the attacker acts immediately. In others, the permission remains available until the wallet contains valuable assets.

Laundering Stolen Funds

Once assets are stolen, criminals may move them through several wallet addresses, swap tokens or transfer funds between networks. They may eventually send the assets to cryptocurrency exchanges or other services where they attempt to cash out.

Blockchain transactions are generally visible, which can help investigators trace stolen funds. However, tracing money does not guarantee that victims will recover it.

Why Researchers Are Concerned

More Sophisticated Phishing Campaigns

Phishing is becoming more convincing because attackers can copy legitimate websites, messages and branding. Some campaigns also use multiple stages to make the victim feel comfortable before presenting the malicious transaction.

Check Point’s research into Inferno Drainer showed how attackers used Discord communities and redirect systems to guide users towards phishing pages. 

Fake Airdrops

Airdrops are particularly attractive because they promise free tokens. Scammers may announce that users can claim a new cryptocurrency by connecting their wallets.

A well-known example occurred after the legitimate SEC X account was compromised. A fake token claim was promoted and users were encouraged to connect their wallets. 

The lesson is simple: a free token is not worth risking the contents of your wallet.

Impersonation of Trusted Brands

Scammers may pretend to represent exchanges, blockchain projects, wallet providers or other well-known organisations.

This tactic works because users are more likely to trust a familiar name. Chainalysis reported a major increase in impersonation scams during 2025, estimating year-over-year growth of 1,400%. 

AI-Assisted Scam Content

AI tools are also making scam messages easier to produce. Criminals can create better-written emails, fake support conversations and convincing promotional content with less effort.

Researchers therefore expect users to face scams that look more professional than older phishing attempts. Good spelling and a polished website should no longer be treated as proof that a crypto service is genuine.

Most Common Wallet Drainer Tactics

Fake Token Claims

A scammer promises free tokens and asks users to connect their wallets to claim them. The claim page then presents a malicious approval request.

NFT Mint Scams

Fake NFT collections may advertise a limited mint or exclusive release. Users are encouraged to connect their wallets and sign a transaction before the supposed mint closes.

Fake Customer Support

Scammers sometimes create fake support accounts on social media, Discord or Telegram. They may tell users that their wallet or transaction has a problem and ask them to visit a website or sign a transaction.

Sponsored Search Ads

Paid advertisements can be used to place fraudulent websites above legitimate results. Users searching for a wallet, exchange or Web3 project may click the first result without checking the domain carefully.

Social Media Links

Fake announcements can spread quickly through X, Facebook, Instagram and other platforms. A post may use the name and logo of a legitimate project while directing users to a different website.

Discord & Telegram Impersonation

Crypto communities are common targets because users already expect to receive links and announcements through messaging channels. A fake administrator or support agent can therefore appear convincing.

Warning Signs Before Connecting Your Wallet

Before connecting a wallet to a website, look for several warning signs.

• The domain is unfamiliar or slightly different from the official website.
• The offer promises an unusually large or guaranteed reward.
• The site creates pressure by saying an offer will expire within minutes.
• The transaction asks for an unlimited token approval without a clear reason.
• The website contains broken pages, strange wording or copied content.
• The link came from an unverified social-media account.
• A person claiming to be support asks you to sign a transaction.
• The website cannot be confirmed through the project’s official channels.

One warning sign does not always prove that a website is fraudulent. Several warning signs together, however, should be treated seriously.

How to Protect Your Wallet

Verify URLs

Never use links from ads or social media sites for accessing a crypto provider’s site. You should type the URL manually or use your bookmarked link.

Be careful about domain name. Phishing sites may use a slightly altered domain that differs from the legitimate site’s domain just a bit.

Transaction Details Check

This step is one of the most important for preventing wallet drainers.

You should never confirm transactions just because you were told that they are mandatory. Read the instructions for yourself and be very careful about signing token approvals or other permissions to spend your crypto with another address.

When there is something you don’t understand – don’t confirm this transaction.

Use Hardware Wallets

This is another important tool that will protect your wallet from many possible threats online.

However, hardware wallet is not going to solve all problems. It may still sign any transaction you confirmed.

Withdraw Unnecessary Permits

Token permissions could stay alive even when you have finished using that service. Going through your permissions and withdrawing those that you don’t use anymore could minimize potential risks related to misuse of such an old permission.

Update Your Wallet Software

Install the latest versions of your wallet software and OS wherever possible because these could contain some security upgrades and patches for known vulnerabilities.

Don’t Visit Unknown Websites

Do not attach your primary wallet to any websites offering airdrop tokens, NFT, or giveaways. For testing purposes, if you wish to explore a new service, it would be better to use a different wallet with small amounts of money on it.

But most importantly, keep in mind that carefully evaluating transaction approvals could be among the best protection methods against wallet-drainer schemes. The point is not to avoid any web3 interactions, but to know what you sign up for.

What to Do If You Approve a Malicious Transaction

Move Remaining Assets

If you find that you have approved a malicious transaction, act quickly. Move remaining assets to a new wallet that has not been used for the malicious approval.

Do not interact with the suspecting website any further.

Revoke Token Approvals

It is best to revoke any malicious or unnecessary token permission as soon as you can. This will prevent the attacker from using the existing permission to approve more tokens.

However, if the rest of your wallet has already been compromised in some other way, simply revoking one approval will not work. You might want to move remaining assets to a completely new wallet.

Report the Issue

Keep all the transaction hashes, wallet addresses, website addresses and screenshots. Then, report this issue to the appropriate wallet provider, exchange, platform and cybercrime or law-enforcement agency.

This information will allow the investigators to discover any related scams and possibly even trace stolen money.

Monitor Wallet Activity

Make sure to keep track of the activity on the affected wallet for any suspicious transactions. Check for new approvals, transfers or interaction with unknown contracts.

Blockchain transaction information is public, and thus can be used as an evidence when reporting the theft.

Secure Related Accounts

If the scam targeted your email address, your social media account or another online service, make sure to secure the related accounts as well. Use strong passwords and two-factor authentication and disconnect any suspicious applications.

Frequently Asked Questions

What is a wallet drainer?

A wallet drainer is malicious software or smart-contract infrastructure used to steal crypto assets from a wallet. Many drainers work by tricking users into approving transactions or token permissions that allow an attacker to move their assets.

Can a wallet drainer steal my seed phrase?

A typical approval-based wallet drainer does not need your seed phrase. It can steal assets by abusing permissions you have granted through a malicious transaction.

However, some crypto scams use separate methods to steal seed phrases, such as fake wallet websites. Never enter your recovery phrase into a website, message or form unless you are absolutely certain you are using the legitimate wallet recovery process.

Can hardware wallets prevent wallet drainers?

Hardware wallets provide stronger protection for private keys, but they cannot automatically identify every malicious transaction. If you approve a dangerous transaction on the hardware wallet, the transaction can still be executed.

How do I revoke wallet permissions?

The exact process depends on the blockchain and wallet you use. Many wallets and blockchain security tools provide a way to review token approvals and remove permissions. Only use a trusted service and verify that you are interacting with the correct website before connecting your wallet.

Are wallet drainer attacks increasing?

Research indicates that wallet-drainer activity has become a significant and evolving part of crypto fraud. Chainalysis reported strong growth in crypto drainer activity during 2024, while more recent research has continued to document approval-phishing campaigns and attacks against individual wallets.