Users of the Solana-based crypto wallet Phantom are being targeted by phishing scammers attempting to steal their private keys through fake update prompts, CoinTelegraph reported.

Scam Sniffer, a Web3 scam detection platform, issued a warning on Feb. 6, alerting users to the fraudulent activity involving a bogus “update extension” signature request that connects to real Phantom wallets.

The scam operates by tricking users into approving a signature request, which then prompts them to enter their seed phrase. If the victims comply, scammers gain full access to the wallet, enabling them to drain its contents. This follows a previous alert from Scam Sniffer in late January about malicious pop-ups on websites that imitate Phantom’s interface, asking users to input their seed phrase for a fake connection request.

Scam Sniffer has provided tips to help users distinguish between legitimate and malicious pop-ups. One method is to right-click on the pop-up links; phishing pages typically block this function, whereas genuine Phantom wallet windows do not. Additionally, users are advised to verify the URL, as authentic Phantom pop-ups include "chrome-extension" in the link, which scam pages cannot replicate.

Phantom wallet has seen an uptick in usage, largely due to the growing interest in Solana-based memecoins. The wallet's 24-hour revenue from fees was approximately $470,000 over the past day, surpassing that of Coinbase (NASDAQ: COIN ) Wallet, as reported by DefiLlama. Phantom's daily revenue reached a record high of $3.6 million on Jan. 19.

The wallet platform has recently achieved significant milestones, claiming over 10 million monthly active users and more than 850 million total transactions in 2024. On Feb. 6, Phantom announced the introduction of multicurrency support for 16 different currencies.

Earlier, on Jan. 17, Phantom completed a $150 million Series C funding round, with Sequoia Capital and Paradigm leading the investment, bringing its valuation to $3 billion. The company also dispelled rumors of a token airdrop associated with its upcoming social discovery feature earlier in the month.

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