Crypto hacks and frauds led to over $2.3 billion in losses this year, highlighting the persistence of security vulnerabilities in the industry. This figure spans 165 incidents, marking a 40% increase from the previous year.
While the total is lower than the $3.7 billion lost in 2022, the continued rise in attacks signals that the industry’s defenses remain inadequate against the advanced threats.
Ethereum and Access Control Failures Dominate Losses
According to Cyvers’ annual report, access control vulnerabilities stood out as a primary driver of losses, responsible for 81% of the total stolen funds.
Although these incidents accounted for just 41.6% of the cases, their outsized impact reflects the dangers of mismanaged security protocols. Ethereum was the most affected blockchain this year, recording over $1.2 billion in losses.
A rather disturbing trend this year was the prevalence of “Pig Butchering” scams. These elaborate fraud schemes swindled over $3.6 billion from unsuspecting users, with most activity concentrated on the Ethereum blockchain.
“The surge in access control breaches and sophisticated scams like Pig Butchering underscores the importance of implementing AI-powered risk assessment, transaction validation, and anomaly detection tools. Security must evolve to stay ahead of increasingly complex and coordinated attack,” Cyvers told BeInCrypto.
Also, smart contract vulnerabilities dominated the attack landscape, particularly in DeFi. The third quarter of 2024 was the worst for losses, with $790 million stolen during this period.
“If crypto platforms want to avoid becoming the next victim o
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Author: Mohammad Shahid
