Coinspeaker $3.6B Lost in Crypto Scams and Cyber Threats in 2024: Cyvers Report
The year 2024 proved to be a harsh one for cryptocurrency investors, with scams and cyber threats draining $3.6 billion in funds, primarily through Ethereum-based exploits. Among these, pig butchering, a manipulative method used by scammers to lure victims with promises of high returns on fake crypto investments, was the most common type of tactic used by the scammers.
According to a detailed report by Cyvers, a Web3 security firm, pig butchering scams accounted for a considerable portion of the year’s crypto fraud. It analyzed over 150,000 addresses and tracked more than 800,000 transactions. Beyond pig butchering, access control breaches emerged as another major issue, contributing to 41.6% of all fraud incidents and causing 81% of the financial losses. These breaches led to $1.9 billion in damages across 67 reported cases.
Moreover, smart contract exploits and address poisoning also posed significant challenges. Smart contract vulnerabilities caused losses amounting to $456.8 million across 98 incidents, while a single address poisoning case led to a $68.7 million loss.
Quarterly Analysis of Crypto Scams
The first quarter of 2024 witnessed the highest number of fraud cases, with 53 reported incidents. The second quarter saw DMM Exchange’s $305 million loss when hackers gained access to the private key of its Bitcoin hot wallet.
However, the third quarter saw the largest monetary losses, totaling $760 million. This included July’s WazirX hack, which resulted in a loss of $235 million due to a vulnerability in its multi-signature wallet system, and September’s BingX $52 million hot wallets attack.
Notably, the fourth quarter recorded the lowest scams and losses, with mainly Radiant Capital facing a $50 million breach after attackers exploited compromised devices.
Need for Awareness
The rise in cyber threats, up 40% compared to 2023, underscores the growing need for robust security measures. “It’s clear that the crypto space needs stronger defenses and sharper awareness to fight back,” wrote Cyvers on X. Notably, despite the rising sophistication of cybercriminals, the total losses in 2024 were 37% lower than in 2022.
Interestingly, as per the report, recovery efforts have been commendable, with $1.3 billion reclaimed through recovery services and bug bounty programs. On-chain sleuths like ZachXBT played an important role in identifying stolen funds and assisting in their recovery. Deddy Lavid, the CEO of Cyvers, stated that awareness and education could significantly help in mitigating the threat of access control breaches.
Amid these developments, governments worldwide have intensified their efforts to raise awareness. Many issued warnings about the increasing prevalence of pig butchering scams, urging citizens to approach unsolicited investment offers with caution, avoid unfamiliar links, and report suspicious activity to authorities.
In related news, SlowMist today warned investors of rising phishing scam cases disguised as Zoom meeting links. In one instance, a victim lost millions of dollars after installing malicious software through a fraudulent link.
As 2024 draws to a close, the crypto investors hope for a safer environment with advanced security measures.
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$3.6B Lost in Crypto Scams and Cyber Threats in 2024: Cyvers Report
