In the year 2024, it seems that cryptocurrency hackers and exploiters are preparing for a more successful run than they had in 2023. The first quarter of 2024 saw hackers making away with digital assets worth $542.7 million, a significant 42% increase compared to the same period in the previous year.
The driving force behind this surge in hacking activity is the hackers’ continuous evolution in their attack strategies, always on the lookout for easier targets, as explained by Mriganka Pattnaik, the co-founder and CEO of Merkle Science, a crypto risk and intelligence platform.
One common method used by hackers is phishing attacks, where they try to steal sensitive information such as private keys to crypto wallets. Another tactic, known as address poisoning scams, involves tricking investors into sending funds to a fake address that resembles one they have interacted with before.
In a high-profile incident in May, a trader fell victim to a phishing attack and lost $71 million worth of crypto after sending 99% of their funds to the hacker’s address. Surprisingly, the thief returned the $71 million to the trader over a week later, following the involvement of blockchain investigators and the identification of the attacker’s location.
Smart contracts, which were previously a prime target for hackers, have become more secure over time. The “2024 Crypto HackHub Report” by Merkle Science revealed that losses due to smart contract vulnerabilities dropped by 92% to $179 million in 2023, down from $2.6 billion in 2022.
Despite the improvement in smart contract security, private key leaks remain a major concern, accounting for over 55% of hacked digital assets in 2023, according to Pattnaik.
The surge in cryptocurrency prices this year has not only increased the potential rewards for hackers but has also attracted more of them to the crypto space. The total market capitalization of all cryptocurrencies has risen by 54% year-to-date, making it a lucrative target for cybercriminals.
In May 2024 alone, over $574 million worth of digital assets were lost in 30 individual crypto hacks, marking a staggering 666% increase from the previous month, according to a report by PeckShield.
Overall, the cryptocurrency landscape in 2024 appears to be a battleground between hackers and security measures, with both sides constantly adapting and evolving in their strategies.