In 2024, the crypto market experienced over $2.3 billion in losses due to 165 separate incidents. Despite the total being less than in 2022, the 40% rise in attacks reveals vulnerabilities in security systems.
Increase in Crypto Market Attacks and Losses
Cyvers' report notes that access control vulnerabilities were the main contributors to the losses, comprising 81% of the stolen funds. Ethereum was the most affected blockchain this year, with losses exceeding $1.2 billion. Additionally, there was a rise in complex fraud schemes like 'Pig Butchering', which deceived users out of more than $3.6 billion.
Access Control Vulnerabilities and Fraud
Cyvers emphasizes the growth in access control breaches and complex frauds like 'Pig Butchering,' indicating the need for AI-driven tools for risk assessment and transaction validation. Even with auditing and testing, 90% of compromised smart contracts were still attacked, showing the inadequacy of current security measures.
Need for Enhanced Security Measures
Cyvers experts point out that platforms must develop and implement strong detection and prevention systems and integrate them into crisis response strategies. The noticeable decrease in activity in Q4 may be a temporary respite, but the need for strengthened security measures for crypto platforms remains pressing.
The crypto market losses in 2024 highlight the necessity for improved security measures and adaptation to new threats. The industry needs more effective use of AI technologies to enhance protection against rapidly evolving attacks.
