Crypto scams and security debivations have remained serious concern since the advent of cryptocurrencies about 15 years ago.
With global crypto losses estimated at $ 10 billion in only 2024, vulnerabilities have left some investors worried about what they can do to protect themselves.
Main to remember
- Reports suggest that Crypto scams and hacks cause billions of dollars to annual losses.
- Ponzi patterns, phishing and false exchanges are common scams, while hackers concentrate their attacks on vulnerable exchanges and smart contracts.
- Use only deemed platforms alongside two-factor authentication (2FA) and keep your private keys safely.
Types of cryptocurrency and hacks
Although blockchain technology is designed to prevent falsification, fundamental weaknesses are generally in the ecosystem that exists around it.
The fraud of people of their money is a tip as old as time. The cryptocurrency space simply provided the crooks with new tools and techniques to do so. The bad players take advantage of the natural inclination of people for the greed combined with a limited understanding of blockchain technology and the irreversibility of transfers to separate victims from their digital assets with little chances of recovery.
Common cryptographic scams
- Ponzi / Pyramid diagrams: Paying the first investors with new investor funds while demanding wrongly returns from legitimate growth.
- High -performance promises: The most popular investors, these investors with false guarantees of exceptional and risk -free returns.
- Pump: Artificially inflate the prices of assets by disinformation, then sell assets at the top.
- Pig butcher: This involves cultivating online relationships before persuading the victims to send the crypto.
- Pullying carpet / scam outings: Abandon projects and run away with investor funds after generating an initial excitement.
- Phishing / Crypto-Doreur: Create false websites or emails to steal identification information or encourage users to approve transactions that drain the wallets.
- Identity scam / Livestream: Imitate celebrities / influencers to promote false gifts, often requiring initial deposits.
- ATM scams: Create an urgent justification for consumers to take money from their bank accounts and put it in an ATM Bitcoin.
- Poisoning at the address: Sending tiny quantities from similar addresses to encourage recipients to use the bad address for future transactions.
- Recovery scams: Target the previous victims with false promises to recover lost funds for fees.
Bitforex, based in Hong Kong, executed a suspected traction of carpets in February 2024, withdrawing approximately 56.5 million dollars of cryptocurrency before switching to darkness.
Cryptography hacks
While scams have people who involuntarily put their crypto, hacks target vulnerabilities in the code, infrastructure or security protocols, third-party exchanges and wallets, allowing attackers to bypass security measures and steal funds directly from the system.
Common crypto hacks
- Hacking of intelligent contract: Operate vulnerabilities in the Blockchain application code.
- 51% of attacks: Control the majority mining power to manipulate blockchain transactions.
- Personal attacks in the middle: Intercept communications between users and Crypto services.
- Exchange of violations: Attack crypto exchanges through security vulnerabilities.
- DNS Divers: Redirect users of legitimate cryptography websites to malicious clones.
- Brute: Test all possible password combinations to obtain unauthorized access.
| Some notable crypto hacks 2024 | ||
|---|---|---|
| Incident | Stolen amount | Description |
| DMM Bitcoin | $ 3055 million | Japanese Exchange pirated |
| Playdapp | $ 290 million | Patient South Korean Blockchain Pirated Blockchain |
| Wazirx | $ 235 million | Pirated Indian crypto exchange |
| Radiant capital | $ 50 million | Flash loan attack on the DEFI loan platform |
| Gala games | $ 22 million | Blockchain Gaming Company hacked |
| Prism finance | $ 12 million | White Cart of intelligent contract |
North Korea has been the largest cryptographic hack sponsor, stealing more than $ 6 billion in cryptographic assets since 2017.
How to protect your crypto
Crypto protection requires certain measures:
- Use renowned platforms: Choose regulated exchanges and wallets with proven safety files and positive examinations.
- Activate 2fa: This adds an additional safety layer.
- Reject unrealistic statements: If it seems too good to be true, this is probably the case.
- Secure private keys: Never share the keys and use cold storage for long -term assets.
- Strong passwords: Use unique and complex passwords.
- Update the software: Keep portfolio applications and up -to -date safety fixes.
- Check the websites: Check URL and safety certificates before entering identification information.
- Remain informed: Discover emerging scams and best safety practices.
- Monitor the activity: Regularly examine transactions for unauthorized access.
- Report a suspicious activity: Alert of platforms and authorities immediately if fraud is suspected.
The bottom line
In 2024, the cryptographic space experienced significant losses against scams and hacks, thieves and net fraudsters. Investors and holders can protect themselves by adopting best practices, thus ensuring a smoother and safer commitment with the cryptography market.
