Cryptocurrency Scams Cost $3.6 Billion in 2024
Date: 2024-12-27 Author: Oliver Abernathy Categories: CRYPTO PAYMENTS
Cyvers data shows that cyberattacks increased 40% compared to 2023, reaching 165 incidents that caused $2.3 billion in losses. Despite a 37% decline in losses compared to the record highs of 2022, sophisticated scams and breaches were much larger in 2024.
The largest losses were caused by attacks on access control systems, which accounted for 67 incidents with a total loss of $1.9 billion. Vulnerabilities in smart contracts caused losses of $456.8 million in 98 cases, and attacks using address poisoning resulted in a one-time loss of $68.7 million. These cases demonstrate how scammers continue to exploit weaknesses in blockchain networks and decentralized applications.
Ethereum was the main platform for scammers, with 150,000 addresses and 800,000 suspicious transactions. The ease of access to the Ethereum network allowed the attackers to send over 100,000 small transfers as part of the preparation of victims.
Cyvers CEO Deddy Lavid emphasized the importance of informing users about such incidents, as well as the need for transparency on exchanges and increased vigilance on the part of customers to reduce the number of successful attacks.
The term “pigs for slaughter” describes a technique in which scammers contact victims through spam messages, luring them into fictitious cryptocurrency projects. Having gained their trust, the attackers persuade victims to invest small amounts, which then turn into multi-million dollar losses. These funds, most often in the stablecoin Tether (USDT), are laundered through centralized and decentralized exchanges such as Binance, OKX, and Coinbase.
In 2024, a number of major incidents confirmed the presence of systemic vulnerabilities on crypto exchanges. For example, WazirX lost $235 million due to problems with the multi-signature system. $305 million was stolen from DMM Exchange after the private key for a Bitcoin wallet was compromised. Radiant Capital lost $50 million due to hacking of devices used to access the platform, and BingX lost $52 million due to leaks in hot wallets.
Despite the scale of the damage, about $1.3 billion was recovered in 2024 thanks to the efforts of on-chain detectives like ZachXBT and bug bounty programs. The largest number of attacks occurred in the first quarter, and the most significant losses — $760 million — were recorded in the third quarter. By the fourth quarter, fraudulent activity had significantly decreased.
