Crypto Hacks Hit $735 Million, Total Value Lost Rises 9.5% In Q3 – Report

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As a seasoned crypto investor with over a decade of experience in this ever-evolving digital frontier, I find myself both alarmed and unsurprised by the latest security report from CertiK. Alarmed because the numbers continue to paint a grim picture of our sector’s vulnerabilities, and unsurprised because it seems like every time we take a step forward in innovation, we also open ourselves up to new threats.

In simple terms, the blockchain security company CertiK released their Q3 report, highlighting an almost 10% rise in the overall value of crypto hacks from the previous quarter. Interestingly, phishing scams and unauthorized access to private keys made up a staggering 91% of the total losses during this period.

Crypto Hacks’ Value Rises In Q3

CertiK published its HACK3D Security Report for Q3 2024, revealing that crypto hacks continue to be a critical issue for the sector. The blockchain security firm underscored the “need for stronger security measures across the industry” as malicious actors continue to adapt and develop new methods to target the industry.

Between July and September, we saw a decrease of 14% in hacking incidents, amounting to 155 occurrences. This is 27 fewer than what was recorded during the second quarter. Notably, this figure marks a 30% reduction compared to the 224 attacks experienced in the first quarter of the year, indicating a steady decline in hacking activity throughout 2022.

However, the total value lost in Q3 increased by 9.5% from Q2, suggesting that the hacks were more substantial on average. During this quarter, the industry saw around $735 million lost to attacks.

In the first two quarters, CertiK found losses totaling approximately $2 billion, with $505.5 million and $687.4 million lost respectively. This report also pointed out that the percentage of stolen funds returned has decreased noticeably from quarter to quarter. It was 14.4% in Q2 but dropped to just 4.1% by Q3.

In summary, Ethereum suffered the most attacks out of all networks, losing approximately $387.8 million in 86 incidents. Bitcoin followed closely behind as the second-largest target, with a total theft of $238 million, which occurred in a single instance. Furthermore, cybercriminals managed to swipe an estimated $89.83 million from attacks that spanned multiple blockchain networks.

Crypto Hacks Hit $735 Million, Total Value Lost Rises 9.5% In Q3 – Report

$668 Million Lost To Phishing And PKC

In the third quarter, phishing scams and private key breaches resulted in approximately $668 million being stolen, which accounted for about 91% of the total value lost during that period. The report indicated that in Q3, phishing remained the most expensive method, with around $343 million taken across 65 incidents, making it the costliest in two out of the top three attacks.

A significant instance involved the theft of 4,100 Bitcoin from a cryptocurrency investor in Washington. The perpetrators employed intricate strategies of psychological manipulation, or social engineering, to deceive the victim and finance their extravagant lifestyle. Nevertheless, the two individuals suspected of this crime have been apprehended and indicted for conspiracy to steal and money laundering.

In the past three months, private key breaches (PKB) were the second most common method used by scammers, resulting in a staggering $324.4 million being stolen across ten separate instances. The Indian cryptocurrency exchange WazirX suffered the largest loss due to this type of attack during the third quarter.

1) The trading platform suffered a security attack that cost it approximately $235 million worth of various cryptocurrencies like SHIB, ETH, MATIC, PEPE, and USDT. So far in 2024, CertiK has documented 49 incidents of this kind, estimating total losses at around $675 million for the year to date.

In summary, the blockchain security company found that while there has been advancement, the sector still faces vulnerabilities. They emphasized that enhancing users’ understanding of safety protocols is crucial in combating harmful entities.

Even with ongoing improvements in security, hacking incidents remain a persistent issue within the cryptocurrency sector. As the industry expands and matures, so too do the strategies used by cybercriminals, who seize opportunities to exploit weaknesses in both centralized and decentralized systems. Although there has been a reduction in the frequency of hacks this quarter, the rise in total funds stolen underscores the importance of investing in user education and developing advanced security methods to safeguard assets and preserve trust within the ecosystem.

Crypto Hacks Hit $735 Million, Total Value Lost Rises 9.5% In Q3 – Report

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2024-10-04 18:12