Scammers and cyber attackers are increasingly turning their attention to cryptocurrencies, reaping huge profits from these digital assets. Traditional forms of fraud, such as credit card scams, are becoming less attractive to these criminals. In the second quarter, cyber attackers did not rest, successfully stealing millions of dollars from various crypto protocols.
Cryptocurrency hacker incidents in the second quarter of 2024 significantly increased, according to a report from Immunefi, a blockchain cybersecurity company. Attacks more than doubled compared to the same period in 2023. Financial losses this year increased from $220 million to $572 million compared to the previous year. Preliminary data for 2024 shows a decrease in losses from cryptocurrency attacks, down 23% in the first quarter. However, a dramatic shift occurred in late May when DMM Exchange had $305 million worth of assets stolen, severely impacting overall losses.
This quarter deviated from the norm, with centralized exchanges being hit first, accounting for 70% of the total $401 million in losses. In contrast, losses from decentralized finance (DeFi) protocols decreased by 25%, reaching $171 million. Ethereum and BNB Smart Chain remain the primary targets for cyber attackers, with 71% of DeFi losses occurring on these platforms.
Attacks on Ethereum’s layer-two solutions also increased, with Arbitrum network experiencing four attacks, resulting in 5.5% of the total losses. Mitchell Amador, the founder of Immunefi, emphasized that these attacks highlighted the vulnerability of centralized exchange infrastructure, resulting in higher financial losses compared to the DeFi industry, despite fewer incidents.
Key insights into cryptocurrency security:
– Centralized exchanges remain highly vulnerable and profitable targets for cybercriminals.
– DeFi protocols on Ethereum and BNB Smart Chain are frequent targets of attacks, with layer-two solutions like Arbitrum becoming new targets for hackers.
– A vulnerability in centralized infrastructure can lead to significant financial losses.
Recent trends emphasize the importance of enhancing security measures for all types of cryptocurrency exchanges to mitigate these escalating threats. The economic losses caused by cyber attacks are a significant challenge, requiring increased vigilance and improved security protocols. Disclaimer: The information in this article does not constitute investment advice. Investors should be aware of the high volatility of cryptocurrencies, which entails risks, and should conduct their own research. Follow our news on Telegram, Twitter (X), and Coinmarketcap.
