Q3 2024: Crypto Hacks Decline in Number but Surge in Value

The third quarter of 2024 has seen a notable decline in the number of reported cryptocurrency hacks, yet the total value of stolen assets has surged.

According to a report from cybersecurity firm CertiK on October 1, financial losses rose by roughly 9.5%, amounting to $753 million taken across 155 hacking incidents.

Ethereum was particularly affected, enduring 86 different attacks and scams that resulted in losses exceeding $387 million. The largest theft involved the loss of 4,064 Bitcoin, valued at approximately $238 million, due to a wallet compromise on August 19. Another significant breach occurred at WazirX, an Indian crypto exchange, which lost over $235 million, further contributing to the quarter’s losses.

Overall, hackers have stolen nearly $2 billion in 2024, with the first quarter accounting for over $505 million from 224 attacks, and the second quarter seeing a rise to $687 million. Additionally, the recovery of stolen funds has declined, with only 4.1% retrieved last quarter compared to 14.4% in the previous one.

Phishing attacks have emerged as the most damaging tactic in Q3, with over $343 million lost across 65 incidents. These scams typically involve impersonating legitimate organizations to trick users into revealing sensitive information, such as passwords and private keys. CertiK advises users to be cautious of unsolicited messages, verify URLs and email addresses, and use two-factor authentication to enhance security.

Private key compromises ranked as the second most harmful method, resulting in $324 million in losses from just 10 incidents, alongside various vulnerabilities and price manipulation attacks.