A recent report by web3 security firm Cyvers reveals that pig butchering scams have emerged as the most significant fraud scheme of 2024, resulting in a staggering $3.6 billion in crypto losses.
Pig Butchering Scams on the Rise
According to the report, Cyvers tracked over 150,000 addresses and 800,000 transactions linked to pig butchering scams, highlighting the scale of the problem. This type of long-term fraud involves scammers grooming victims over time to make substantial investments. The report notes that $3.6 billion in stolen funds were traced to the Ethereum (ETH) blockchain alone.
Sophisticated Scammers
The report emphasizes that scammers are becoming increasingly sophisticated, using dating apps and social media platforms to lure victims. Scammers create fake profiles, build trust over weeks or months, and convince victims to invest in fraudulent crypto platforms that appear legitimate.
Cyber Threats and Recoveries
In addition to pig butchering scams, the report highlights a 40% increase in cyber threats in 2024, resulting in $2.3 billion in losses across 165 incidents. Despite this surge, overall losses remained 37% lower than in 2022. Ethereum was the primary target for scammers, with access control breaches driving $1.9 billion in losses.
Recommendations and Efforts to Combat Fraud
In response to the rise in pig butchering scams, Cyvers recommends increased user education, enhanced wallet security measures, and stricter regulations for crypto platforms. The firm also highlights the importance of real-time monitoring and advanced threat detection systems to mitigate potential losses. Efforts to combat fraud have recovered $1.3 billion this year, thanks to on-chain investigators and bug bounty programs.
Notable Incidents
The report notes several significant incidents, including a $305 million breach of DMM Exchange due to a compromised private key, a $235 million hack targeting WazirX through a multi-signature wallet vulnerability, and $52 million in losses suffered by BingX after hot wallet exploits.
Source: Cryptoslate.com
