Ethereum Wallet Feature Criticized Over Security Issues

A new Ethereum wallet feature called EIP-7702 has been found to have security issues after researchers detected attacker-linked contracts tied to 63% of its authorization transactions.

The study, which was peer-reviewed and presented for USENIX Security '26, tracked 3.66 million authorization transactions across seven chains through July 2025 and found that attackers were behind most of the early activity tied to this new feature.

Of these transactions, 2,322,548, or 63%, were linked to contracts identified as malicious by researchers. The study also measured $2,362,848.76 in confirmed losses across three attack types and found that attackers have prepared these authorizations ahead of time and gotten victims to sign them, sometimes through a wallet prompt that does not clearly show which code is being approved.