Ethereum's (CRYPTO:ETH) ERC-20 standard has emerged as a double-edged sword, fostering innovation while simultaneously presenting opportunities for scammers to exploit security gaps, resulting in significant losses to phishing attacks.

The discovery of an inherent flaw within the ERC-20 design, particularly in functions like "permit" and "increaseAllowance," has led to a surge in phishing scams, affecting a wide array of users across the Ethereum network.

Despite efforts to amend these vulnerabilities through updates and additional functionalities, the immutable nature of blockchain technology complicates the process of rectifying these design issues, leaving the door open for continued exploitation.

Security researchers and developers are engaged in a constant battle against social engineering tactics that prey on the complexities and technical nuances of ERC-20 tokens, emphasising the need for more user-friendly and secure interaction methods.

The debate among experts highlights a divide on how to address the security challenges posed by ERC-20 tokens, with some attributing the rise in scams to social engineering, while others call for a fundamental reevaluation of the token standard to enhance security measures and protect users.