Crypto Industry Suffers Over $1 Billion in Hack and Fraud Losses in 2024: Report
Global — The cryptocurrency industry has suffered significant financial setbacks in 2024, with losses from hacks and fraud surpassing $1.19 billion, according to a recent report by cybersecurity firm Immunefi. The report highlights a 16.3% increase in losses compared to the same period in 2023, when the industry faced losses totaling $1.02 billion.
The data for the first seven months of the year reveals a persistent and growing threat posed by cybercriminals. In July alone, the crypto sector recorded losses of $269.4 million across 14 separate incidents, marking a staggering 90% increase from June. This makes July the second most damaging month of the year, only behind May, which saw losses reach $358 million.
Despite the monthly surge, there was a 15.9% decrease in July losses compared to the previous year. A significant portion of these losses is attributed to a major hack on the Indian centralized exchange WazirX, which resulted in a devastating $235 million loss. The report indicates that centralized finance (CeFi) platforms have been the primary targets of these attacks, accounting for 87% of the total losses in July. In contrast, decentralized finance (DeFi) platforms experienced $34.4 million in losses spread across 13 incidents.
The report also underscores that hacks remain the predominant cause of these financial setbacks, with $266.5 million lost to such incidents in July alone. In comparison, fraud and scams constituted only 1.1% of the total losses for the month.
Immunefi’s findings further highlight the involvement of North Korean hacker groups, notably the infamous Lazarus Group, in some of the most significant attacks. The WazirX hack is suspected to have been orchestrated by North Korean actors, emphasizing the global nature of these threats.
Ethereum and BNB Chain emerged as the most targeted blockchain networks in July, collectively accounting for 71.4% of the total losses. Ethereum alone was hit by seven attacks, representing half of the total incidents, while BNB Chain experienced three significant breaches.
In response to these findings, ChainSwap’s founder and CEO, Fitzy, shared insights with BeInCrypto, noting that while Web3 technology fosters innovation, it also creates new opportunities for financial crimes and fraud. He emphasized that Web3 tools are not inherently criminogenic but are exploited as new mediums by scammers.
As the cryptocurrency industry continues to evolve, the Immunefi report serves as a stark reminder of the need for enhanced security measures and vigilance to protect against increasingly sophisticated cyber threats.
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Source: beincrypto
