Blockchain security firm CertiK has warned crypto investors about a sharp rise in phishing scams, marking them as the biggest security threat of 2024.
Its latest report, “Welcome to Hack3d: The Web3 Security Report for 2024,” gives an excellent overview of the vulnerabilities and emerging attack trends, along with financial losses across the industry.
2024 was a year of significant cryptocurrency adoption, especially marked by the greenlighting of spot Bitcoin and Ethereum ETFs by the U.S. Securities and Exchange Commission.
Deals for Bitcoin ETFs were first floated by firms at the forefront: BlackRock, Fidelity; Ethereum ETFs followed in July. These permits increased institutional confidence and more mainstream acceptance of the use of digital assets.
After the U.S. presidential election, Bitcoin jumped over $100,000, which pulled Ethereum and Solana up. The re-election of Donald Trump gave a very favorable tone to the industry.
His administration appointed blockchain advocate Paul Atkins to lead the SEC. In addition, Elon Musk was put in charge of the newly formed Department of Government Efficiency (DOGE), which caused Dogecoin to rally.
Security threat sintensify in the crypto industry
Despite the growth in the market, security threats intensified. Numbers are staggering. More than $2.36 billion was stolen across 760 security incidents, up 31.61% from 2023. Of this amount, just less than half could be squarely on phishing at over $1.05 billion at the tail of 296 incidents. Meanwhile, hacks around private keys are to blame for nearly $855 million in damage.
Ethereum remained the most targeted network, with losses across 403 incidents amounting to $748 million. Bitcoin and Tron follows in terms of key breaches with $542 million and $133 million respectively. Multichain exploits added another $435 million in losses.
May was the most expensive month, with losses amounting to more than $444 million in 63 incidents. Q3 was the strongest quarter, with $753 million stolen, while Q4 saw a dramatic 46.65% decrease.
According to CertiK, the growing sophistication of the attacks-and therefore the need for more sophisticated security-are highlighted in its report. The report is a necessary guide for developers, investors, and policymakers who have to navigate the rapidly changing landscape of Web3.
