Cryptocurrency security is still a major concern, even though the number of hacks is decreasing. While there were fewer attacks in the third quarter of 2024, the amount of money stolen actually went up.
Hackers Getting Smarter, Not Just More Numerous
The number of crypto hacks has been steadily going down throughout the year. In the third quarter, there were 155 hacks, which is a 30% drop from the first quarter. However, the total amount of money stolen increased by almost 10% compared to the previous quarter. This means that while there are fewer attacks, the attacks that are happening are more successful and are taking more money.
$735 Million Stolen in Q3
In the third quarter, hackers stole around $735 million in cryptocurrency. This is a significant increase from the previous quarter, and it brings the total amount of money stolen in 2024 to almost $2 billion.
Phishing and Private Key Compromises Are the Biggest Threats
The majority of the money stolen in the third quarter was due to phishing scams and private key compromises. These two methods accounted for a whopping 91% of the total losses.
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Phishing scams: These scams trick people into giving up their private keys or other sensitive information. In the third quarter, phishing scams resulted in over $343 million being stolen. One notable case involved a crypto investor who lost 4,100 Bitcoin after being tricked by sophisticated social engineering tactics. The scammers used the stolen money to fund a lavish lifestyle, but they were eventually caught and arrested.
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Private key compromises (PKC): These attacks involve hackers gaining access to a person’s or organization’s private keys, which allows them to control the associated cryptocurrency. In the third quarter, PKC attacks resulted in over $324 million being stolen. The largest victim of this type of attack was the Indian crypto exchange WazirX, which lost $235 million in cryptocurrency.
The Need for Better Security and Education
The report highlights the need for better security measures and user education to protect cryptocurrency assets. Even though there are improvements in security, hackers are constantly finding new ways to exploit vulnerabilities. The increase in the amount of money stolen in the third quarter is a reminder that everyone needs to be more careful and take steps to protect themselves from these threats.
