The Shady World of Cryptocurrencies: How Cyberattacks and Scams Cost $3 Billion in Losses in 2024
The world of cryptocurrencies continues to be a hot spot for hackers and scammers. In 2024, a staggering $3 billion was stolen in illicit activities, as reported by [source]. Even though the number of attacks may be on the decline, their financial impact keeps growing, posing challenges that could escalate in 2025 due to advancing technology and new phishing tactics.
Cyberattacks: the main cause of losses
In 2024, cyberattacks in the cryptocurrency realm led to around $2.15 billion in losses, making up over 70% of the total. Decentralized finance (DeFi) platforms were prime targets due to their lack of strict regulations and high concentration of digital assets. [source] pointed out that exchanges faced the brunt of attacks in the first quarter of 2024, indicating a trend of well-planned incursions.
Scams: a lurking danger
Apart from hacks, scams contributed $834.5 million to the cumulative losses. [source] emphasized that phishing attempts were the most expensive attack vector, resulting in over $1 billion stolen across 296 incidents. These scams employed increasingly sophisticated methods to target unsuspecting individuals seeking quick profits.
An increase in losses, but fewer incidents
Despite a 15% rise in economic losses compared to 2023, the number of hacks and scams showed a downward trajectory since 2022. PeckShield attributed this decline to a less active market and enhanced security measures by certain platforms. However, experts cautioned that the impact of each attack is more severe, indicating hackers are concentrating efforts on fewer but more lucrative targets.
A positive note amidst the gloom: $488.5 million in stolen funds were recovered in 2024, per PeckShield data. This marks a significant breakthrough, thanks to collaboration between blockchain security firms and regulatory bodies. Nonetheless, this amount only represents a fraction of the total losses.
Future challenges: artificial intelligence and advanced scams
Looking ahead to 2025, new obstacles arise. CertiK warned that the evolution of artificial intelligence could heighten the sophistication of phishing tactics and other attack methods. Furthermore, the increasing institutional adoption and regulatory acceptance are drawing malevolent actors seeking to capitalize on this surge.
Despite a drop in the number of incidents, the cryptocurrency sector remains a prime target for illicit activities. Strengthening security systems and educating users to mitigate risks are crucial tasks for the industry. Reports from [sources] and experts stress the importance of global collaboration in combatting cybercrime. With a constantly evolving landscape, security measures must proactively protect users and uphold trust in the cryptocurrency market.
