$3.6B Lost in Crypto Scams and Cyber Threats in 2024: Cyvers Report

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As a researcher who has spent countless hours delving into the intricacies of cybersecurity within the crypto space, the events of 2024 have been both eye-opening and disheartening. The relentless onslaught of scams and cyber threats has left many investors reeling, with the pig butchering tactic proving to be a particularly pernicious predator.

2024 turned out to be a challenging year for me as a crypto investor, with an estimated $3.6 billion lost to scams and cyber threats predominantly through exploits on the Ethereum network. Among these incidents, pig butchering – a deceptive technique employed by swindlers to entice victims with false promises of high returns on non-existent crypto investments – was the most prevalent tactic I encountered.

Based on findings from a comprehensive study by Cyvers, a Web3 security company, pig butchering scams were a significant contributor to the total crypto fraud in the year under review. The analysis covered approximately 150,000 addresses and traced over 800,000 transactions. Apart from pig butchering, unauthorized access control breaches emerged as a significant concern, accounting for 41.6% of all fraud incidents and causing 81% of the monetary losses. These breaches resulted in approximately $1.9 billion in damages across 67 reported cases.

As a crypto investor, I’ve learned the hard way that smart contract exploits and address poisoning can be major roadblocks. In fact, these vulnerabilities have cost investors approximately $456.8 million in 98 instances. What’s more, a single case of address poisoning resulted in a staggering loss of $68.7 million. These incidents serve as a stark reminder to always exercise caution when investing in cryptocurrencies.

Quarterly Analysis of Crypto Scams

During the initial three months of 2024, we encountered an unprecedented spike in fraud instances, totaling 53 cases. In contrast, the second quarter was marred by a significant cyberattack against DMM Exchange, resulting in a loss of approximately $305 million when unauthorized individuals managed to breach the platform’s Bitcoin hot wallet’s private key.

In the third quarter, I experienced the most substantial financial setbacks, amounting to approximately $760 million. This was primarily due to two significant incidents: first, the WazirX hack in July, which resulted in a loss of around $235 million, stemming from a security flaw in its multi-signature wallet system; second, the attack on BingX’s hot wallets in September, leading to a loss of roughly $52 million.

To highlight, the fourth quarter experienced the least amount of fraud incidents and financial losses. Primarily, Radiant Capital suffered a $50 million breach following an attack where hackers took advantage of vulnerable devices in their system.

Need for Awareness

As an analyst, I’m seeing a significant surge (up by 40%) in cyber threats compared to the year 2023, which clearly emphasizes the increasing demand for robust security measures within the crypto sphere. In light of this, my observation is that we require tougher defenses and heightened awareness to counter these digital assaults. Cyvers on X aptly put it: “It’s evident that the crypto space needs stronger fortifications and sharper vigilance.” Interestingly, despite the escalating intricacy of cybercriminals, the total losses in 2024 were a noteworthy 37% less than those experienced in 2022.

Notably, according to the findings, the restoration efforts have been praiseworthy, as $1.3 billion has been retrieved through recuperation services and bug bounty initiatives. Detectives like ZachXBT have contributed substantially by locating stolen assets and aiding in their return. Deddy Lavid, CEO of Cyvers, emphasized that increased awareness and education could greatly reduce the risk of access control violations.

In light of recent advancements, governments across the globe are stepping up their initiatives to educate their populations more thoroughly. They’ve been issuing alerts about the escalating number of pig butchering scams, encouraging citizens to exercise caution when encountering uninvited investment proposals, steer clear from unfamiliar links, and report any suspicious behavior to the relevant authorities.

Today, SlowMist issued a cautionary advisory to investors about an increase in phishing incidents that appear as Zoom meeting invitations. In a recent occurrence, an investor lost a significant amount of money by downloading harmful software via a fake link.

By the end of 2024, crypto investors are wishing for a more secure landscape that features robust safety precautions.

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2024-12-27 15:45