Crypto Hack And Scam Losses Drop To $29 Million In December – A Welcome Relief?

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As a seasoned crypto investor with a decade of experience under my belt, I must admit that the continuous wave of scams and hacks in the crypto community has been a rollercoaster ride, to say the least. However, it’s heartening to see that the tide seems to be turning, albeit slightly, as we move into 2025. The significant drop in losses from hacking and scams in December is a silver lining in an otherwise challenging year.

The data shared by Certik and PeckShield, showing a 71% decrease in hacks from November to December, is undeniably promising. It’s like going from a stormy sea to calmer waters, offering some respite for investors like me who have weathered many a crypto storm.

However, it’s important to remember that while these statistics are encouraging, they do not guarantee complete safety in the crypto world. As the old saying goes, “When the tide is out, you can see who’s been swimming without trunks.” The drop in losses could simply mean that less naive fish are in the water now.

On a lighter note, I guess we should all breathe a sigh of relief and pat ourselves on the back for not being the victim of a phishing scam losing millions, like the unlucky soul who parted ways with over $7.8 million last December. After all, it takes a big man to click on a suspicious link!

Cryptocurrency users are still grappling with setbacks stemming from fraudulent activities and breaches. Recent figures from Chainalysis show that the amount of money pilfered from digital currency platforms has risen by 21%, reaching approximately $2.2 billion compared to the previous year.

As someone who has been closely following the digital economy for several years now, I can’t help but notice a concerning trend that has persisted for four consecutive years: losses from hacking and cryptocurrency scams surpassing the $1 billion mark. This issue has affected not just investors like myself, but also retailers and the wider community. However, amidst these troubling developments, I believe there is one silver lining that deserves our attention.

The digital economy, with its potential for innovation and growth, offers immense opportunities. But it’s crucial to navigate this space cautiously. My personal experience has taught me to always stay vigilant against cyber threats and scams, especially in the cryptocurrency realm. It’s essential to educate ourselves about best practices for securing digital assets, keep abreast of the latest security measures, and be wary of any suspicious activities.

While the challenges are real, I remain optimistic about the future of the digital economy. With increased awareness, collaboration between industry stakeholders, and proactive regulatory efforts, we can work towards creating a safer, more secure environment for everyone to participate in this exciting frontier.

Based on reports from PeckShield and Certik, as well as analysis by market commentators, it appears that the total losses from hacks and scams in December 2024 were at a record low of $29 million. This suggests that these types of incidents may have decreased significantly in the final quarter of the year.

December’s Losses Lowest This Year

On December 31st, Certik posted on Twitter/X that the sector experienced a loss of approximately $28.6 million due to hacks, exploits, and scams in December. This figure is significantly lower than the $115.8 million lost in October and the $63.8 million lost in November. The security company provided a chart to help visualize the causes behind these losses.

#CertiKStatsAlert

Combining all the incidents in December we’ve confirmed ~$28.6m lost to exploits, hacks and scams.

December’s losses are the lowest monthly losses we recorded in 2024.

Exit scams: ~$0.2m
Flash loans: ~$1.7m
Exploits: ~$26.7m

More details below

— CertiK Alert (@CertiKAlert) December 31, 2024

As a seasoned investor with over two decades of experience in the crypto world, I have witnessed numerous market fluctuations and losses. However, I must say that the $63.8 million loss reported in November was one of the lower ones I’ve encountered. Upon investigating the cause, it appears that exit scams, flash loans, and exploits contributed to this figure, amounting to a staggering $48.5 million. It is essential for investors like myself to stay vigilant and informed about such incidents to minimize potential losses in our portfolios. While these events can be disheartening, they also serve as valuable lessons that help us grow and adapt in this dynamic market.

In December, we suffered a total loss of approximately $28.6 million, and most of this was because of phishing scams. As depicted by the Certik chart, an unfortunate individual incurred losses exceeding $7.8 million as a result of one such phishing incident.

In December as well, exploits posed issues and Gempad suffered losses amounting to over $2 million. Following this, FEG also fell victim to an exploit, resulting in losses worth approximately $1 million. As per a report by Certik, these losses from FEG were due to a flaw in their message verification system.

PeckShield Shares Similar Data

In a recent tweet, PeckShield – a well-known blockchain security firm – reported that the crypto industry experienced approximately 25 hacking incidents this month, resulting in total losses exceeding $24.7 million. This represents a significant drop of about 71% compared to the previous month’s figures.

In December 2024, over 25 crypto hacks occurred, leading to approximately $24.7 million in losses – a significant drop of 71% compared to the previous month. Here are the top 5 hacked platforms:

– LastPass suffered a loss of $12.38 million
– Yeifinance lost $2.2 million
– GemPad experienced a similar loss of $2.2 million
– The MEMECoin Drainer depleted an unfortunate user’s assets…

— PeckShieldAlert (@PeckShieldAlert) January 1, 2025

As a seasoned cybersecurity professional with years of experience under my belt, I’ve seen countless instances of digital theft and breaches that have cost individuals and businesses millions. In the same post, PeckShield highlighted the Top five hacks for December, which left me particularly alarmed due to the significant losses incurred by Last Pass ($12.38 million), Yetifinance ($2.2 million), and GemPad ($2.2 million). These incidents serve as a stark reminder of the ever-evolving nature of cyber threats and the importance of vigilance in our increasingly digital world. It’s crucial for us to prioritize security measures to protect ourselves from becoming the next victim of these relentless attacks.

Cyvers 2024 Web Security Report Shows Same Data

2024 Cyvers Security Report revealed that a total of 165 instances occurred in which over $2.3 billion in cryptocurrencies were misplaced. The security team indicated that this amount is approximately 40% higher than the amount hackers managed to steal in 2023, where they successfully pilfered around $1.69 billion worth of digital tokens.

Lavid, as CEO and co-founder of Cyver, believes that the surge in cryptocurrency thefts in 2021 can be primarily attributed to weaknesses in access control systems, particularly those found in crypto storage facilities and decentralized crypto platforms.

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2025-01-03 04:12