Cryptocurrency hackers and exploiters are expected to have a successful year in 2024, potentially surpassing their achievements in 2023.
During the first quarter of 2024, hackers managed to steal digital assets worth $542.7 million, marking a 42% increase compared to the same period in 2023. According to Mriganka Pattnaik, co-founder and CEO of crypto risk and intelligence platform Merkle Science, hackers are constantly adapting their attack methods and targeting easier victims.
Pattnaik explained that phishing attacks are a common tactic used by hackers to steal sensitive information such as crypto wallet private keys. Address poisoning scams, a type of phishing attack, deceive investors into sending funds to a fraudulent address that appears similar to ones they have interacted with previously.
In a notable incident in May, a trader fell victim to a phishing attack and lost $71 million worth of crypto. Surprisingly, the attacker returned the stolen funds to the victim over a week later, after the incident attracted the attention of blockchain investigation firms.
While smart contracts are becoming more secure, hackers are still searching for vulnerabilities in other areas. The “2024 Crypto HackHub Report” from Merkle Science revealed that losses due to smart contract vulnerabilities decreased by 92% in 2023. Private key leaks are now a major concern, with over 55% of hacked digital assets lost to this type of breach in 2023.
The decrease in smart contract exploits can be attributed to improved security tools and hackers focusing on easier targets, according to Pattnaik. The rising value of cryptocurrencies is also attracting more hackers to the space, with the total market capitalization of all cryptocurrencies increasing by 54% year-to-date.
In May 2024, over $574 million worth of digital assets were lost in 30 individual crypto hacks, marking a 666% month-over-month increase, as reported by PeckShield. This surge in hacking incidents highlights the growing risks faced by investors in the crypto space.
Overall, the cryptocurrency landscape is evolving rapidly, with hackers finding new ways to exploit vulnerabilities and target unsuspecting victims. Vigilance and robust security measures are essential to protect digital assets from malicious actors in the ever-changing world of cryptocurrencies.