In the first half of 2024, the world of cryptocurrencies experienced a series of attacks and frauds that led to significant losses. According to various security reports, total losses from crypto hacking and scams have exceeded a billion dollars.
In the first six months, losses caused by frauds and hacking amounted to 1.19 billion dollars, largely driven by phishing attacks and private key violations. These numbers highlight a worrying trend that requires immediate attention from the crypto community and regulatory authorities.
Causes of Attacks and Security Measures
Attacks on cryptocurrencies can be attributed to several main causes:
- Vulnerabilities in DeFi protocols: Decentralized finance (DeFi) crypto platforms are often targeted by hackers due to their inherent vulnerabilities.
- Phishing and Social Engineering: Hackers use phishing techniques to deceive users and gain access to their digital wallets.
- Rug Pulls: Scams where developers abruptly abandon a project after collecting funds from investors.
- Deepfakes: The use of deepfake to create false identities and deceive investors has led to significant losses.
- Exchange Attacks: Cryptocurrency exchanges remain one of the preferred targets for hackers due to the large amounts of funds they handle.
During the first half of the year, there were several cases of large-scale attacks. A well-known DeFi protocol was breached, causing losses of over 100 million dollars in just a few minutes. A large-scale phishing campaign stole access credentials from numerous users, leading to significant losses. Finally, a promising project turned out to be a scam when its developers disappeared with investors’ funds through a rug pull.
To mitigate the risk of attacks and frauds, security experts recommend various measures that users and crypto platforms should adopt, such as two-factor authentication (2FA) to add an extra layer of security to accounts, and using hardware wallets that offer greater security compared to software wallets.
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In addition, regular software updates reduce the risk of system vulnerabilities along with security education for users. Security audits allow for reviewing opinions, identifying, and resolving potential vulnerabilities.
The United States is seeking to regulate the cryptocurrency sector to protect investors and support market security by introducing the FIT21 Act.
The text of this law has been approved by a bipartisan majority and will likely attract institutional investors’ capital.
Some experts argue that this law will slow down the development of decentralized finance, but with losses exceeding a billion dollars in this last half-year, it is essential to create the conditions for greater security across the entire crypto sector.
The current losses, while alarming, can also serve as a catalyst for positive change. Only through a concerted effort will it be possible to mitigate risks and ensure a safer future for the cryptocurrency environment.
