Aug 3, 2024
Acording to Beincrypto, The crypto industry has experienced considerable financial setbacks in 2024, with losses due to hacks and fraud surpassing $1.19 billion, according to a recent report by Immunefi. This marks a 16.3% increase compared to the same period in 2023, when losses totaled $1.02 billion, highlighting the growing threat posed by cybercriminals to the crypto sector.
July proved to be particularly detrimental, with the crypto sector suffering $269.4 million in losses across 14 incidents. This represents a staggering 90% increase from June, making July the second most damaging month of 2024. May remains the most severe month, with losses reaching $358 million. Despite the monthly surge, year-over-year data shows a 15.9% decrease in July's losses.
A major contributor to July's losses was a devastating hack on the Indian centralized exchange WazirX, which alone accounted for $235 million of the total losses. Centralized finance (CeFi) bore the brunt of these attacks, representing 87% of the losses, while decentralized finance (DeFi) platforms incurred $34.4 million in losses across 13 incidents.
Predominance of Hacks in Crypto Losses
Hacks remain the leading cause of losses in the crypto industry, with $266.5 million attributed to such incidents in July. In contrast, fraud and scams accounted for only 1.1% of the total losses for the month. Notably, North Korean hacker groups, particularly the infamous Lazarus Group, have been implicated in several significant attacks, including the WazirX hack.
Ethereum and BNB Chain were the most targeted blockchain networks in July, collectively accounting for 71.4% of the total losses. Ethereum alone faced seven attacks, representing half of the total incidents, while BNB Chain experienced three significant breaches.
Industry Leaders Stress the Need for Enhanced Security Measures
ChainSwap's founder and CEO, Fitzy, emphasized that while Web3 technology fosters innovation, it also creates new opportunities for financial crimes and fraud. He noted that Web3 tools themselves are not inherently criminogenic but are exploited by scammers. "Web3 tools do not cause crime; they are just used as a new medium to commit some scams. The best way to protect oneself from scams and fraud is to proceed with caution," Fitzy stated.
Slava Demchuk, CEO of AMLBot, highlighted the urgent need for robust security measures in response to the substantial losses from hacker attacks and fraud. He recommended regular audits and penetration tests, as well as personal training in handling sensitive data and stricter employee hiring processes. Demchuk cited the Fractal ID hack and the Coinspad hack as examples of vulnerabilities in KYC data handling and inadequate employee vetting.
Fitzy also advised individual investors to exercise caution and knowledge, particularly when using decentralized applications. He suggested looking for indicators such as volume, community size, and credible founders or partners as signs of a likely safe application.
The persistent and growing threat of cybercriminals in the crypto industry underscores the need for enhanced security measures and vigilance. As centralized and decentralized platforms continue to face significant risks, the industry must adapt to safeguard against increasingly sophisticated attacks.
#Market_Update #July_NonFarmPayrolls_Shock #US_Job_Market_Slowdown #6thTrade