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Crypto Frauds Surge 40% in 2024: $3.6 Billion Lost to ‘Pig Butchering’
A recent report has revealed a staggering surge in crypto frauds, with losses reaching a record-breaking high of $3.6 billion in 2024. This significant increase of 40% compared to the previous year highlights the alarming rate at which cybercriminals are exploiting vulnerabilities in the cryptocurrency market.
The report states that around 800,000 fraudulent transactions were recorded throughout the year, resulting in devastating losses for investors and industry participants alike. The most concerning aspect is the dramatic rise in access control breaches, which accounted for a staggering 40% of all reported incidents. This type of attack resulted in an astonishing $1.9 billion in losses.
Other notable incidents included smart contract exploits and “address poisoning,” which collectively led to hundreds of millions of dollars in additional losses. The report highlights the importance of robust security measures and continuous vigilance against these increasingly sophisticated attacks.
The most significant losses were experienced by well-known crypto exchanges, with WazirX suffering a $235 million loss due to a vulnerability in its multi-sig wallet, DMM Exchange losing nearly $305 million due to a compromised Bitcoin private key, and BingX experiencing a $52 million loss resulting from a weakness in its hot wallet.
However, the report also highlights a positive trend: despite the surge in frauds, losses decreased by 37% compared to 2022. This improvement is largely attributed to the efforts of investigators such as ZachXBT, who successfully traced lost funds and recovered $1.3 billion throughout the year.
The data also reveals that the first quarter of 2024 was the most active period for frauds, with 53 incidents reported. Conversely, the fourth quarter saw a significant decline in activity, suggesting a possible shift in tactics by cybercriminals or improved security measures by exchanges and platforms.
In light of these findings, it is essential for industry participants to remain vigilant and proactive in addressing the growing threat of crypto fraud.
Source: crypto-economy.com
