As the crypto industry continues to grow and evolve, so do the threats to its security. In a recent report, blockchain security firm CertiK has sounded the alarm on the rising threat of phishing scams, which emerged as the most significant security threat of 2024.
Phishing Scams: The Most Costly Attack Vector in Crypto Industry
Phishing attacks involve hackers sharing fraudulent links with victims to steal sensitive information, such as crypto wallet private keys. These types of attacks were the most costly attack vector for the crypto industry in 2024, netting attackers over $1 billion worth of stolen digital assets across 296 incidents, according to CertiK’s annual Web3 security report published on January 2.
"Phishing was the most costly attack vector last year," a CertiK spokesperson told Cointelegraph. "Our figures are conservative, the actual figure is higher when you consider unreported incidents and other types of phishing scams like pig butchering."
Incidents and Losses in 2024 by Month
The report highlights the scale of damage possible from phishing attacks, with at least three incidents resulting in losses exceeding $100 million. In May, a trader lost $68 million worth of crypto in a single transaction due to an address-poisoning incident.
Address-Poisoning Incident: A Cautionary Tale
In this type of incident, victims are tricked into sending their digital assets to fraudulent addresses belonging to scammers. Fortunately, the unknown attacker returned all the stolen funds after 10 days, likely due to pressure from heightened attention by blockchain security firms.
Private Key Compromises: The Second-Largest Threat
Private key compromises were the second-largest threat after phishing scams, resulting in over $855 million worth of stolen crypto across 65 incidents in 2024. "Phishing tactics will certainly evolve in 2025, especially as AI develops," a CertiK spokesperson added.
Crypto Attacks by Type and Month (Q4 2024)
Despite the growing threat of crypto phishing scams, the yearly amount of crypto hacks was still down 52% from the $3.5 billion stolen during 2022, according to CertiK’s report.
Industry Participants Take Measures Against Phishing Attacks
The anti-hack response team, Security Alliance, led by white hat hacker and Paradigm researcher Samczsun, has received over 900 hack-related tickets since it launched in August 2023. The world’s largest exchange is also battling crypto scammers, with Binance’s security experts developing an "antidote" against the growing instances of address poisoning scams.
Beyond Phishing Incidents: Crypto Hacks Cost Industry Over $2.3 Billion
Beyond phishing incidents, crypto hacks cost the industry over $2.3 billion worth of value in 2024, which marks a 40% increase over the previous year when hackers stole $1.69 billion worth of crypto, according to a report shared by onchain security firm Cyvers.
Conclusion
As the crypto industry continues to grow and evolve, it is essential for investors to be aware of the rising threat of phishing scams and take necessary precautions to protect their assets. With the increasing use of AI in phishing attacks, it is crucial for industry participants to stay vigilant and adapt to emerging threats.
Recommendations
To avoid falling victim to phishing scams:
- Verify links: Be cautious when clicking on links shared by unknown sources.
- Use two-factor authentication: Enable two-factor authentication to add an extra layer of security to your accounts.
- Keep software up-to-date: Regularly update your operating system and browser to ensure you have the latest security patches.
- Monitor your accounts: Regularly check your account balances and report any suspicious activity.
Stay Informed, Stay Secure
To stay informed about the latest developments in blockchain security, follow CertiK’s Web3 security reports and subscribe to industry news outlets. By staying vigilant and adapting to emerging threats, you can protect your assets and contribute to a safer crypto ecosystem.
Related Articles
- Top Crypto Investments in 2025: Bitcoin, AI Projects, Tokenized Assets
- Crypto Whale Up $11.5M on AI Token Position in 19 Days
- Down to $200 One Day, Pixels Founder Had $2.4M the Next: Luke Barwikowski, X Hall of Flame
Subscribe to Finance Redefined
Get the latest DeFi developments, sharp analysis, and new financial opportunities delivered straight to your inbox every Friday. Subscribe now and make smart decisions with confidence.
By subscribing, you agree to our Terms of Service and Privacy Policy
Stay ahead of the curve and protect your assets in the ever-evolving crypto landscape.
