By Key Points
- In the first half of 2024, hackers stole $1.4 billion from traders.
- Seventy percent of stolen funds come from the top five attacks.
- 150% increase in median hack size compared to 2023.
- No changes were made to basic security measures for cryptocurrencies during this period.
Crypto traders worldwide have lost $1.4 billion to hackers during the first half of 2024, according to data reported by TRM Labs. This figure is significantly higher than it was during the same period last year when losses amounted to $657 million.
The report also found that a small number of large-scale attacks make up most of these losses: top five hacks alone account for 70% of stolen funds this year; this mirrors what happened in 2023 – meaning while numbers may not have changed much, their impact has grown much greater.
Google reveals a faster AI training technique; Bitcoin ETF investors buy the dip; crypto hacks double to $1.4bn in H1; AI aids transhumanism; Multicoin Capital matches SOL donations for crypto-friendly Senate candidates. pic.twitter.com/lwafXcx05K
— cryptosummary (@cryptosummaryhq) July 6, 2024
Major hacks & attack vectors:
The largest thefts this year happened on Japanese exchange DMM Bitcoin where more than 4500 BTC (over $300m at the time) were stolen. How the breach happened exactly remains unclear but potential vectors include stolen private keys or address poisoning.
One technique involves sending small amounts of cryptocurrency into the victim’s wallet to create fake transaction history which can mislead users into transferring funds wrongly the next time they make a transaction.
Private key and seed phrase compromises are still major attack vectors in ‘24 with smart contract exploits and flash loan attacks also being used frequently by hackers leading to significant financial loss on the part of traders involved – TRM Labs found this out through their research into the matter.
They also observed that the median size of hacks was 150% bigger during the first half of ‘24 than in corresponding months in ‘23 – however, even with these increased numbers total thefts from hacks and exploits were still not higher than a third below the same period in 2022 which registered as having highest yearly crypto thefts.
No significant changes in security:
TRM Labs has said there are no fundamental changes within the security systems protecting the cryptocurrency ecosystem to account for the rise (in terms of number) of hackings witnessed so far this year compared with last year’s figures.
However, one factor contributing to such high numbers stolen is average token prices being more elevated over the past six months relative to the same period last year – when digital assets become pricier it serves as greater motivation for cyber-criminals targeting them.
Protecting Crypto Assets:
In light of persistent threats posed by hackers who steal people’s money through cyber-attacks on exchanges or wallets, robust protective measures must be put in place by traders/investors.
These should include using hardware wallet devices that can store private keys offline; enabling two-factor authentication (2FA); frequently changing passwords etc.
Also keeping abreast latest security threats surrounding cryptosystems will help ensure safety at all times while transacting business electronically involving such currencies
The pace at which attacks keep evolving necessitates constant vigilance coupled with aggressive steps towards securing digital currencies given the nature of these financial instruments.
This means putting up foolproof methods aimed at ensuring minimal exposure levels among participants involved in online trading activities.
