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Crypto Frauds Surge 40% in 2024: $3.6 Billion Lost to ‘Pig Butchering’
A staggering 40% increase in cyber frauds has been reported for the year 2024, with a devastating total loss of $3.6 billion. The alarming rise in fraudulent activities has raised concerns about the security and integrity of the crypto industry.
According to a recent report, over 165 fraud incidents were registered, resulting in significant financial losses. Most of these breaches occurred due to access control vulnerabilities, which accounted for nearly 40% of the reported incidents. Additionally, smart contract exploits and “address poisoning” also contributed to substantial financial losses.
One notable incident involved the Indian platform WazirX, which lost a staggering $235 million after a vulnerability in its multi-sig wallet was exploited. Similarly, DMM Exchange suffered an attack where nearly $305 million was extracted from their Bitcoin private key. Another incident occurred at BingX, resulting in the theft of $52 million due to a hot wallet vulnerability.
Despite these devastating losses, it is noteworthy that a significant portion of the stolen funds has been recovered. The efforts of investigators such as ZachXBT have helped trace and recover around $1.3 billion of lost assets.
The report also highlighted some positive trends, with losses in 2024 being 37% lower than those reported in 2022. This slight improvement in cybersecurity is a welcome development in the face of an otherwise dire situation.
Interestingly, the first quarter of 2024 proved to be the most active period for fraud incidents, with 53 cases reported during this time. On the other hand, the third quarter witnessed the highest losses, with $760 million lost due to these malicious activities.
In conclusion, it is essential that the crypto community remains vigilant and proactive in addressing the growing threat of cyber frauds. With over $3.6 billion lost in 2024, there can be no room for complacency when it comes to protecting the integrity of our digital assets.
Source: crypto-economy.com
