Crypto Investors Warned: Phishing Scams Emerge as Most Significant Security Threat of 2024
As the crypto industry continues to grow, so does the number of security threats that investors and traders face. In its annual Web3 security report published on January 2, blockchain security firm CertiK has issued a warning to crypto investors about the rising threat of phishing scams, which emerged as the most significant security threat of 2024.
What are Crypto Phishing Attacks?
Crypto phishing attacks involve hackers sharing fraudulent links with victims to steal sensitive information, such as crypto wallet private keys. This type of attack is particularly effective because it preys on the victim’s trust and relies on their willingness to click on a link or provide sensitive information.
Phishing Scams: The Most Costly Attack Vector in 2024
According to CertiK’s annual Web3 security report, phishing attacks were the most costly attack vector for the crypto industry in 2024. Netting attackers over $1 billion worth of stolen digital assets across 296 incidents, this type of attack has proven to be a significant threat to the industry.
Losses from Phishing Incidents in 2024
Out of the 296 phishing incidents in 2024, at least three resulted in losses exceeding $100 million. This highlights the scale of damage possible and the need for investors and traders to be vigilant when it comes to phishing scams.
Private Key Compromises: The Second-Largest Threat
Private key compromises were the second-largest threat after phishing scams, resulting in over $855 million worth of stolen crypto across 65 incidents in 2024. This type of attack involves hackers gaining access to a victim’s private keys and using them to steal their digital assets.
The Evolution of Phishing Tactics
As AI develops, phishing tactics will certainly evolve, making it even more important for investors and traders to be aware of the latest threats and take steps to protect themselves. "Phishing tactics will certainly evolve in 2025, especially as AI develops," a CertiK spokesperson added.
Crypto Attacks by Type and Month (Fourth Quarter of 2024)
| Month | Phishing Incidents | Private Key Compromises |
| — | — | — |
| Oct-2024 | 24 | 10 |
| Nov-2024 | 26 | 8 |
| Dec-2024 | 22 | 9 |
Source: CertiK
Despite the growing threat of crypto phishing scams, the yearly amount of crypto hacks was still down 52% from the $3.5 billion stolen during 2022, according to CertiK’s report.
Industry Participants Taking Measures Against Phishing Attacks
The anti-hack response team, Security Alliance, led by white hat hacker and Paradigm researcher Samczsun, has received over 900 hack-related tickets since it launched in August 2023. Binance’s security experts have also developed an "antidote" against the growing instances of address poisoning scams.
Crypto Hacks Cost Industry Over $2.3 Billion Worth of Value in 2024
Beyond phishing incidents, crypto hacks cost the industry over $2.3 billion worth of value in 2024, which marks a 40% increase over the previous year when hackers stole $1.69 billion worth of crypto, according to a report shared by onchain security firm Cyvers.
Conclusion
Phishing scams have emerged as the most significant security threat for the crypto industry in 2024. With losses exceeding $1 billion and at least three incidents resulting in losses exceeding $100 million, it’s clear that this type of attack is a major concern for investors and traders.
To protect themselves from phishing attacks, investors and traders need to be vigilant and take steps to educate themselves about the latest threats. This includes being aware of the tactics used by hackers and taking measures to secure their digital assets.
Recommendations
- Be cautious when clicking on links: Avoid clicking on suspicious links or providing sensitive information.
- Use two-factor authentication: Enable two-factor authentication (2FA) to add an extra layer of security to your accounts.
- Keep software up-to-date: Regularly update your operating system, browser, and other software to ensure you have the latest security patches.
- Use a reputable antivirus program: Install a reputable antivirus program to protect against malware and viruses.
By following these recommendations and staying informed about the latest threats, investors and traders can reduce their risk of falling victim to phishing attacks.
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