Crypto Hacks Jump 15% in 2024, Costing $3 Billion

Cryptocurrency wallet providers are continually enhancing their security measures, but so are the malicious actors targeting them. This ongoing battle between security and threats has reached a stalemate, according to an executive from a hardware wallet firm. The chief experience officer at Ledger, Ian Rogers, described the situation as a perpetual "cat and mouse game," where crypto wallet firms are constantly adding new security features while hackers find more advanced ways to access victims’ wallets.

Rogers emphasized that the simplest scams are often the most effective because they exploit human error. He warned that people frequently share their 24-word recovery phrases with others, making it easy for scammers to target them. "Anyone who asks for your 24 words is a criminal," Rogers stated. He highlighted a common crypto scam where victims are tricked by replies under posts on social media platforms, with messages like "DM me, and I’ll help you."

Scammers often hijack the accounts of well-known industry figures to post malicious links, making it even harder for users to spot the scam. In a recent incident, Ethereum co-founder Vitalik Buterin’s account was compromised, leading to a fake NFT giveaway that tricked followers into clicking, resulting in the loss of over $691,000 from their wallets. This incident underscores the importance of being aware of phishing attacks on social media, which can drastically increase a user’s crypto security.

Rogers noted that scams are not limited to the crypto industry. Traditional scams, such as fake emails from the "Nigerian president," have been around for years. The cost of an attack is always commensurate with the size of the prize, he said. In 2024, crypto hacks jumped 15% from 2023, with over $3 billion stolen. Pig butchering scams have emerged as one of the most pervasive threats to crypto investors, with losses on the Ethereum network costing the industry $5.5 billion across 200,000 identified cases in 2024. Pig butchering is a type of phishing scheme that involves prolonged and complex manipulation tactics to trick investors into willingly sending their assets to fraudulent crypto addresses.

The security of private keys remains one of the most critical and challenging aspects of blockchain security. Despite the implementation of best practices, sophisticated attackers can sometimes bypass these measures, highlighting the need for continuous innovation in security protocols. The ongoing battle between security measures and cyber threats in the crypto industry is a testament to the need for constant vigilance and adaptation. As the landscape of cyber threats evolves, so too must the strategies employed to protect digital assets and maintain the integrity of the crypto ecosystem.