TL;DR
- Despite a decline in the number of crypto hacks, cybercriminals stole $750 million in Q3 2024 according to CertiK, a 9.5% increase from the previous quarter.
- Phishing attacks and private key compromises were the most prevalent methods, causing over $667 million in losses.
- Recovery of stolen assets dropped significantly, with only 4.1% of funds recovered, highlighting the growing sophistication of cybercriminals.
The third quarter of 2024 saw a decline in the number of reported cryptocurrency hacks, yet the total value of assets stolen surged dramatically. According to a recent report by cybersecurity firm CertiK, a staggering $750 million was siphoned off by cybercriminals across 155 incidents.
🧵 Hack3D Report: Q3 2024 🧵
155 hacks, scams, and exploits drained $753,094,610 from Web3 in Q3 2024. This represents a 9.5% increase in value lost compared to Q2, despite fewer incidents.
🎥 Watch the breakdown in the video below.
📊 View the full report:… pic.twitter.com/WYhp7fGFCx— CertiK (@CertiK) October 2, 2024
This represents a 9.5% increase in financial losses compared to the previous quarter. The Ethereum network bore the brunt of these attacks, with 86 hacks, scams, and exploits resulting in over $387 million in losses.
One of the most significant incidents occurred on August 19, when a Bitcoin whale lost 4,064 BTC, valued at approximately $238 million, due to a wallet compromise. Another major breach involved the India-based crypto exchange WazirX, which suffered a loss of over $235 million.
CertiK Report: Phishing and Private Key Compromises
Phishing attacks emerged as the most prevalent and costly method used by cybercriminals, accounting for over $343 million in losses across 65 incidents. These attacks typically involve scammers posing as legitimate institutions to deceive users into revealing sensitive information, such as login credentials or private keys.
CertiK advises users to be cautious of unsolicited messages, double-check website URLs and email addresses, and enable two-factor authentication (2FA) to mitigate such risks.
Private key compromises were the second most damaging attack type, resulting in $324 million in losses across just 10 incidents. These attacks highlight the critical importance of securing private keys and using hardware wallets to store cryptocurrencies safely.
Decline in Recovery of Stolen Assets
The report also noted a significant decline in the recovery of stolen assets. Only 4.1% of the stolen funds were recovered in the third quarter, a sharp drop from the 14.4% recovery rate in the previous quarter.
This underscores the growing sophistication of cybercriminals and the challenges faced by security firms in tracking and retrieving stolen assets. Despite a reduction in the number of hacks, the third quarter of 2024 has proven to be a costly period for the crypto industry.
The surge in financial losses highlights the evolving tactics of cybercriminals and the need for enhanced security measures. As the crypto landscape continues to grow, both users and platforms must remain vigilant to safeguard their assets.
