Cryptocurrency hackers and exploiters are expected to have a prosperous year in 2024, potentially surpassing their achievements in 2023.
During the first quarter of 2024, hackers managed to steal digital assets worth $542.7 million, marking a 42% increase compared to the same period in 2023.
Mriganka Pattnaik, co-founder and CEO of crypto risk and intelligence platform Merkle Science, stated that the main reason for this success is the hackers’ constant shift in attack strategies, focusing on easier targets.
Pattnaik explained that phishing attacks are a common method used by hackers to steal sensitive information, such as crypto wallet private keys. In particular, address poisoning scams involve tricking investors into sending funds to a fraudulent address that resembles ones they have previously interacted with.
In a notable incident in May, a trader fell victim to a high-profile phishing attack, losing $71 million worth of crypto after sending 99% of their funds to the attacker’s address. Surprisingly, the attacker returned the $71 million to the trader over a week later, following the attention drawn by blockchain investigation firms.
While smart contracts are becoming more secure, hackers are still seeking out easier targets. The Merkle Science 2024 HackHub report revealed that losses due to smart contract vulnerabilities decreased by 92% to $179 million in 2023, down from $2.6 billion in 2022.
Private key leaks remain a significant concern, with over 55% of hacked digital assets lost due to such leaks in 2023.
The decrease in smart contract exploits can be attributed to advanced security tools and hackers focusing on easier targets, according to Pattnaik.
The surge in cryptocurrency valuations is also attracting more hackers, with the total market capitalization of all cryptocurrencies rising by 54% year-to-date.
In May 2024, over $574 million worth of digital assets were lost in 30 individual crypto hacks, representing a 666% month-over-month increase, as reported by PeckShield on June 1.
Overall, the growing cryptocurrency prices are not only increasing the potential rewards for exploiters but also drawing more hackers into the crypto space, as highlighted by Pattnaik.