Ethereum's Pectra upgrade has led to a surge in EIP-7702 transactions, with daily interactions nearing 1,000. This upgrade converts external accounts into smart contract wallets, offering batch actions, sponsored gas, passkey authentication, spending limits, and wallet recovery. The process involves signing a transaction and delegating execution to a smart contract, enhancing user control. While praised for improving user experience and accessibility to DeFi, security experts warn of phishing threats exploiting the upgrade. Attacks now bundle authorization permissions, making them harder to detect and execute. Recent phishing campaigns by groups like Inferno Drainer have utilized EIP-7702 features to drain user assets. As Ethereum balances functionality with security, the community must prioritize user education and interface improvements to mitigate risks associated with the upgrade. Read more AI-generated news on: https://app.chaingpt.org/news