Cybercriminals in the world of cryptocurrency are expected to have a more successful year in 2024, potentially surpassing their achievements in the previous year. In the first quarter of 2024, hackers managed to steal digital assets worth $542.7 million, showing a 42% increase compared to the same period in 2023.
According to Mriganka Pattnaik, the co-founder and CEO of Merkle Science, a crypto risk and intelligence platform, hackers are continuously changing their attack methods and seeking out easier targets. Pattnaik explained that phishing attacks, where hackers try to obtain sensitive information like crypto wallet private keys, are a common tactic. Additionally, there are address poisoning scams where investors are tricked into sending funds to a fraudulent address that appears similar to ones they have previously used.
In a notable incident in May, a trader fell victim to a high-profile phishing attack and lost $71 million worth of cryptocurrency. Surprisingly, the thief returned the stolen funds a week later after blockchain investigation firms got involved and identified the attacker.
Smart contracts, which were previously a prime target for hackers, have become more secure. However, hackers are now focusing on easier targets like private key leaks. According to Pattnaik, over 55% of hacked digital assets in 2023 were lost due to private key leaks.
The increase in cryptocurrency prices has not only attracted more investors but also more hackers to the space. The total market capitalization of all cryptocurrencies has risen by 54% year-to-date, creating a larger bounty for exploiters. In May 2024, over $574 million worth of digital assets were lost in 30 different crypto hacks, marking a significant increase from the previous month.
Overall, the evolving tactics of hackers combined with the growing value of cryptocurrencies are posing significant challenges to the security of the crypto space in 2024.