In 2024, crypto phishing incidences surge, culminating in a staggering $497 million in losses for a tragic 330,000 victims.
Crypto Phishing Snares Users, Snags $500 Million in 2024
In a chilling reminder of the darker side of the crypto world, phishing attacks by wallet drainers climbed to staggering heights in the year 2024, with an alarming $500 million STolen, leaving over 330,000 addresses compromised. This alarming surge represents a shocking 67% leap from the previous year, pointing towards the relentless evolution of these harmful schemes, as per Scam Sniffer.
Ethereum Takes the Phishing Hit as Attacks Mutate
This mass theft occurred in distinct waves, with the first quarter (Q1) of 2024 proving to be the most devastating, recording a whopping $187.2 million in losses and over 175,000 victims. More ominously, March alone claimed $75.2 million in losses, making it the bloodiest single month of the year.
The carnage continued in Q2 and Q3, together accounting for $257 million in losses from 90,000 addresses. Interestingly, the number of victims and the total losses notably decreased in Q4, with $51 million stolen from 30,000 users. This significant reduction suggests improvements in user awareness and security measures towards the end of the year.
Large-scale thefts stayed a persistent problem, with a whopping 30 events exceeding $1 million each, cumulatively swallowing $171 million. The first half of the year primarily featured smaller-scale thefts ranging from $1 million to $8 million per incident.
However, the second half witnessed titanic attacks, with August and September causing massive losses of $55 million and $32 million, respectively. These two months alone contributed over half of the year's total from large-scale incidents.
Ethereum bore the brunt of the losses, followed by Arbitrum, Base, Blast, and BNB Chain. It's worth noting that staking and restaking tokens took the heaviest toll, followed by stablecoins, Aave collateral, and Pendle yield-bearing assets.
The Phishing Minefield mutated through 2024. In the first half of the year, three principal players – Angel, Pink, and Inferno – ruled the roost. Angel reigned supreme with 41% market control, while Pink and Inferno claimed 28% and 22%, respectively. In May, Pink bid adieu, leaving Angel and Inferno to square off. By Q4, Angel had managed to gobble up Inferno, hinting at further consolidation. Newcomers also popped up, adding layers of complexity to the ever-shifting landscape.
The relentless rise in phishing attacks and wallet drainers in 2024 serves as a clarion call for the importance of adopting ironclad security practices and educating users to counter the growing risks in the ever-evolving crypto sphere.
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Inside Scoop:
- Scams and phishing remained the top illicit activities in 2024's digital realm, with thousands of phishing and investment scam sites sprouting monthly[1].
- Approximately 23% of global phishing attacks targeted social media in the final quarter of 2024[2].
- In the United States alone, crypto scams resulted in losses worth $9.3 billion in 2024, with fraudulent investment schemes contributing to over half ($5.8 billion) of those losses[5].
- Scammers adopted advanced methods, such as "pig butchering," involving personal relationships with victims before convincing them to invest in sham projects[5].
- Crypto ATMs, QR codes, stablecoins, DeFi platforms, and AI-generated personas were employed by fraudsters to target victims worldwide[1].
- Seniors were disproportionately affected, with over $2.8 billion in losses reported by victims aged 60 and above[5].
- The staggering surge in phishing attacks in 2024, totaling $500 million, highlights the urgent need for improved cybersecurity measures in the crypto industry, particularly in web3 technology.
- Ethereum was heavily targeted in these phishing attacks, bearing the brunt of the losses, followed by other platforms like Arbitrum, Base, Blast, and BNB Chain.
- Staking and restaking tokens, stablecoins, Aave collateral, and Pendle yield-bearing assets were among the most compromised tokens, underlining the need for vigilance and security in crypto finance.
- The phishing landscape evolved throughout 2024, with three principal players, Angel, Pink, and Inferno, dominating the first half, followed by consolidation and the emergence of newcomers in the second half.
- Crypto scams continued to pose a significant threat, with crypto platforms such as Uphold, eToro, Plus500, Coinbase, and Moonacy experiencing a plunge in 2024.
- Globally, phishing attacks targeting social media accounted for approximately 23% of all attacks in the final quarter of 2024, emphasizing the importance of general-news and crime-and-justice awareness in the digital realm.
