Crypto fraud losses surge 9.5% to $753 million in Q3 2024, with phishing attacks leading the way
Key theft and phishing are the most common types of fraud
According to the Hack3d: The Web3 Security Quarterly Report by blockchain security firm CertiK, over $753 million was stolen by attackers in 155 security incidents during Q3 2024.
The losses for crypto asset owners increased by 9.5% compared to Q2, although the total number of incidents decreased by 27.
CertiK found that key theft and phishing are among the most common types of fraud in the cryptocurrency sector.
Two of the most significant security incidents in October were caused by phishing attacks. In one case, an attacker gained control of private keys and smart contracts from several signatories and was able to withdraw $58 million from the Radiant Capital lending protocol. In another incident, a "whale" lost $36 million due to a phishing attack.
Fewer attacks, but higher losses
In total, about $129.7 million was lost in October due to exploits, hacks, and fraud.
“Phishing attacks are particularly effective because they typically target human vulnerabilities rather than technical ones,” a CertiK representative told Cryptopolitan.
Additionally, attackers often create fake websites or impersonate well-known platforms to trick users into providing sensitive information. Since private keys provide full access to your crypto assets, losing them can be financially devastating.
Overall, CertiK estimates losses in the cryptocurrency space for 2024 to exceed $2 billion. In 2023, crypto projects lost around $1.7 billion, and in 2022, the total was $4 billion.
The report from cybersecurity firm PeckShieldAlert underscores the persistence of threats in the crypto space, with substantial amounts stolen despite increased security measures.
