According to the latest report by Chainalysis, the number of crypto crimes has significantly increased in 2024, raising serious concerns about the safety of investors and companies.
Rise in Crypto Thefts
In 2024, the amount of stolen cryptocurrency has increased dramatically. Chainalysis reports that by the end of July, the amount of stolen funds doubled, reaching $1.58 billion compared to $857 million in the previous year. Hacking activity surged sharply after a decline in 2023. The amount stolen per hacking incident rose by 79.46%, while the number of incidents increased by 2.76%. A significant portion of losses is linked to centralized services, such as the $305 million theft from the exchange DMM, accounting for 19% of all stolen funds in 2024. Ransomware payments also reached new heights, with the largest payment recorded being $75 million—a 96% increase from the maximum payment in 2023.
AI Scams
The FBI has warned about the growing threat of AI-based scams. Cybercriminals are using AI to create highly targeted phishing attacks that appear very convincing due to their proper grammar and spelling. These attacks aim to steal data and deceive users. Scammers also utilize chatbots and virtual assistants to promote fake tokens, coordinate pump-and-dump schemes, and disseminate misleading investment advice. The spread of deepfake videos, featuring well-known personalities, has become one of the new threats. These videos often promise to double cryptocurrency investments via QR codes and redirect users to fraudulent websites. A recent Deloitte report shows that the dark web has spawned an industry selling scam software for prices ranging from $20 to thousands of dollars, making existing anti-fraud tools less effective.
Tips to Avoid Scams
Do not trust big profit promises. All investments in cryptocurrency come with risks, and scammers often exploit greed with high and quick returns promises. Always double-check messages and emails for errors. Genuine companies usually have well-written communications. Avoid deals that lack detailed information. Legitimate investment opportunities provide clear and transparent information about risks and expected returns. Be cautious of manipulative tactics. Scammers might use coercion or threats to force a deal. Always review contracts carefully and avoid suspicious offers. Question celebrity endorsements. If a recommendation seems suspicious, verify its authenticity. Legitimate endorsements are usually well-documented and public.
The rising threats in the cryptocurrency sector demand increased vigilance from both investors and companies. The use of AI and the increase in hacking attacks require all market participants to take additional measures to protect their funds and data.
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