Crypto Scam: Total Losses In 2024 Tops $2B Despite Fewer Hacks

A new report shows that losses from crypto scam incidents have topped $2 billion from majorly phishing and private key hacks

Despite ongoing efforts to safeguard digital assets, the industry faces persistent crypto scam threats. Cybersecurity firm CertiK recently released its Web3 security report for the third quarter of 2024, highlighting a striking trend. 

Although the number of crypto-related hacks has decreased, the value of stolen assets has skyrocketed. A CertifK report shows that the total losses for the year are about $2 billion. 

Most Common Crypto Scam Model: Phishing and Private Key Hacks 

CertiK’s latest report reveals that hackers successfully siphoned off a staggering $750 million in Q3 alone, spread across 155 incidents. 

This represents a 9.5% increase in the value stolen, even though there were 27 fewer crypto scam incidents than in the previous quarter. This data underscores how the sophistication and impact of these attacks are growing, even if the frequency has diminished.

The report identifies phishing and private key compromises as hackers’ most prevalent and damaging methods. Phishing led with $343 million in losses across 65 incidents, while private key vulnerabilities were responsible for about $317 million in crypto scam losses across just 10 incidents. 

The most notable private key breach occurred in July. Bad actors exploited vulnerabilities within the WazirX exchange. They stole $231 million in assets across more than 200 cryptocurrencies, including Ethereum (ETH), Shiba Inu (SHIB), and Polygon (MATIC).

The report also showed a sharp decline in the recovery of stolen funds. Only 4.1% of funds were recovered in Q3, a significant drop from the 14.4% recovered in the previous quarter. 

Ethereum: The Prime Target for Bad Actors

Ethereum continues to wear a target on its back, with hackers zeroing in on the leading blockchain more than any other. CertiK’s Q3 report revealed that the network saw a staggering $387.8 million stolen in 86 separate incidents. These total losses far outpaced other blockchains. 

Beyond Ethereum, multichain hacks have become another rising threat, accounting for $89.8 million in losses across various networks. As the crypto ecosystem becomes more interconnected, the risks associated with cross-chain technologies are becoming more apparent. 

As such, users need to be more cautious.

Disclaimer: The information provided in this article is for informational purposes only. It does not constitute investment, financial, trading, or any other sort of advice. You should not treat any of BGECrypto’s content as such. BGEcrypto does not recommend that any cryptocurrency should be bought, sold, or held by you. Do your due diligence and consult your financial advisor before making any investment decisions.