August Sees $310M Lost to Crypto Scams, Second-Highest in 2024
August 2024 witnessed a dramatic increase in crypto-related scams, with a staggering $310 million lost to various exploits, making it the second-highest monthly total this year. According to a report by blockchain security firm CertiK, only $10.3 million of the stolen assets were eventually recovered, leaving a net loss of $300.6 million.
Phishing Scams Dominate, Leading to Massive Losses
Phishing emerged as the most devastating form of attack, accounting for approximately $293 million of the total losses. Two particularly large-scale phishing incidents were responsible for the majority of this amount, with one attack resulting in the theft of $238 million in Bitcoin and another leading to the loss of $55 million in DAI stablecoin.
Notable Crypto Exploits in August
Beyond phishing, several crypto projects also fell victim to significant exploits. On August 6, the Ronin Network, an Ethereum Virtual Machine (EVM)-based sidechain, was targeted by a white hat hacker, resulting in the theft of 4,000 ETH, valued at approximately $9.85 million at the time. Additionally, flash loan attacks, while still a concern, resulted in relatively lower losses of $1.2 million in August, marking a decrease from previous months.
Decline in Exit Scams Amid Rising Phishing Attacks
Interestingly, while phishing and other forms of exploitation surged, exit scams saw a significant decline. Losses from exit scams dropped to $800,000 in August, a considerable decrease from the $3 million reported in July. Meanwhile, scammers have increasingly incorporated crypto ATMs and kiosks into their fraudulent schemes, exploiting these digital currency exchange points to swindle unsuspecting victims. The FBI’s Internet Crime Complaint Center reported over 2,000 complaints involving the use of cryptocurrency ATMs and kiosks in 2023, primarily from individuals over the age of 60.
Illicit Crypto Transactions on the Decline in 2024
Despite the rise in specific types of crypto-related crime, overall illicit cryptocurrency transactions have seen a decline in 2024, according to a recent Chainalysis report. The mid-year crypto crime update, released on August 15, highlighted a significant increase in hacking and ransomware attacks. By the end of July, the cumulative value of stolen cryptocurrencies had reached $1.58 billion, marking an 84% increase compared to the same period in 2023. Although the number of hacking incidents increased only slightly by 2.8% year-over-year, the average value stolen per hack surged dramatically.
Law Enforcement Crackdown on Crypto-Related Crimes
In response to the rising tide of crypto crime, federal agencies, including the FBI and the U.S. Department of Justice, have intensified their efforts to combat illegal activities in the sector. Earlier this year, authorities cracked down on nearly 3,000 “money mules” – individuals who collect and transfer money on behalf of international fraud rings. These criminal networks have even recruited college students to collect payments from victims and open fraudulent bank accounts to funnel illicit proceeds.
This crackdown is part of a broader effort to address the growing complexity of cryptocurrency-related crimes and protect consumers from increasingly sophisticated scams.
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