Ethereum Dust Attacks Surge After Fusaka, Fueling Address Poisoning and Signature Phishing Losses

Ethereum dust attacks have increased sharply following the Fusaka network upgrade, with blockchain security firms reporting a spike in address poisoning and signature phishing incidents. 

Lower transaction fees have made it cheaper for attackers to send tiny “dust” transfers at scale, creating new opportunities for wallet manipulation scams.

Recent reports highlight multiple high-value losses, including a $12.2 million January crypto loss and a $50 million December crypto scam tied to address poisoning tactics. Combined cases show over $62 million lost address poisoning incidents in just a short period.

As attack frequency rises, understanding how these scams work and how to avoid copying the wrong wallet address has become critical for everyday crypto users.

Key Takeaways

• Dust attacks surged after Fusaka upgrade transaction costs dropped

• Address poisoning scams caused tens of millions in recent losses

• Signature phishing attacks are rising alongside dust transactions

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Dust Attacks Rise After Fusaka Upgrade

Source: freepik

Security analysts link the recent spike in dust attacks to reduced Fusaka upgrade transaction costs on Ethereum. 

With lower fees, attackers can cheaply broadcast massive numbers of micro-transactions across thousands or even millions of wallets.

Dust attacks involve sending extremely small token amounts to victim addresses. These transfers are not meant to steal funds directly. Instead, they are designed to manipulate transaction history and visually trick users.

On-chain analytics firms estimate that tiny-value stablecoin transfers now account for a significant share of daily Ethereum activity, with a large portion consistent with poisoning-style behavior.

Lower costs have effectively made large-scale scam infrastructure more affordable to run.

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How Address Poisoning Works

Address poisoning is a social-engineering scam executed on-chain. Attackers generate wallet addresses that closely resemble addresses a victim has previously used, typically matching the first and last characters.

They then send dust transactions from these lookalike addresses so they appear in the victim’s transaction history. When the victim later copies an address from their history to send funds, they may accidentally select the attacker’s spoofed address.

This simple deception has led to major losses, including:

• A $12.2 million January crypto loss from copying the wrong address

• A $50 million December crypto scam using similar poisoning tactics

• More than $62 million lost address poisoning cases across two victims reported by security trackers

Because blockchain transfers are irreversible, a single mistaken paste can permanently send funds to the wrong wallet.

Signature Phishing Is Growing Alongside Dust Attacks

Dust attacks are not the only threat increasing. Security monitors also report a sharp rise in signature phishing campaigns.

Signature phishing does not rely on copying addresses. Instead, it tricks users into signing malicious blockchain approvals or transactions. Victims may unknowingly grant unlimited token spending permissions or authorize hidden transfers.

Recent monthly data shows:

• Millions of dollars lost through signature phishing

• Thousands of victims affected in a single month

• A small number of attacker wallets responsible for most damage

These attacks often use fake websites, spoofed dApps, and malicious ads to lure users into signing harmful requests.

Why Stablecoins Are Frequently Used in Poisoning Attacks

Stablecoins are commonly used in dust and poisoning attacks because they are widely transferred and easily recognized. 

Attackers often send tiny fractions of dollar-pegged tokens so the transaction looks harmless and blends into normal activity.

Some decentralized stablecoins are also harder to freeze at the protocol level, which can make them more attractive to illicit actors once funds are misdirected. However, the scam method itself is chain-agnostic and can target many token types.

READ ALSO: Rethinking Ethereum Layer 2s: So, Vitalik Just Killed Generic L2s?

How to Avoid Copying the Wrong Wallet Address

Understanding how to avoid copying wrong wallet address mistakes is now a core crypto safety skill.

Best practices include:

• Never copy recipient addresses from transaction history alone

• Always paste from your saved whitelist or verified contact list

• Compare the full address, not just the first and last characters

• Use wallet address labeling features where available

• Send a small test transaction before large transfers

• Enable wallet warnings and anti-phishing protections

Users who move large amounts should rely on address books and hardware wallet confirmation screens whenever possible.

Conclusion

The surge in Ethereum dust attacks after the Fusaka upgrade shows how lower transaction costs can unintentionally benefit malicious actors. 

Address poisoning and signature phishing campaigns are scaling quickly, with documented cases including a $12.2 million January crypto loss and a $50 million December crypto scam.

With more than $62 million lost address poisoning incidents recently reported, wallet hygiene and verification habits are no longer optional. Careful address checking, whitelist usage, and signature awareness are now essential defenses for anyone transacting on-chain.

READ ALSO: Why Vitalik Buterin Moved $29 Million in Ethereum and Its Market Impact

FAQ

What is an Ethereum dust attack?

It is when attackers send tiny transactions to manipulate wallet history and support scams like address poisoning.

What is address poisoning in crypto?

It’s a scam where attackers use lookalike wallet addresses to trick users into sending funds to the wrong address.

Did the Fusaka upgrade cause these scams?

It didn’t cause them directly, but lower Fusaka upgrade transaction costs made attacks cheaper to run.

What is signature phishing?

It tricks users into signing malicious approvals or transactions instead of sending funds directly.

How can I avoid copying the wrong wallet address?

Use address whitelists, verify full addresses, and avoid copying from transaction history alone.

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