In 2024, pig butchering scams emerged as the most significant fraud scheme, leading to $3.6 billion in crypto losses. According to a report by web3 security firm Cyvers, this long-term fraud method involves grooming victims over time to make substantial investments, outpacing other forms of crypto scams. The report highlighted that $3.6 billion in stolen funds were traced to the Ethereum blockchain alone. Cyvers tracked over 150,000 addresses and 800,000 transactions linked to pig butchering scams, illustrating the scale of the problem.
The report also emphasized the evolving sophistication of scammers, noting that many victims were lured through dating apps and social media platforms. Scammers created fake profiles, built trust over weeks or months, and convinced victims to invest in fraudulent crypto platforms that appeared legitimate. To combat pig butchering scams, Cyvers recommended increased user education, enhanced wallet security measures, stricter regulations for crypto platforms, and the importance of real-time monitoring and advanced threat detection systems.
In 2024, cyber threats increased by 40%, resulting in $2.3 billion in losses across 165 incidents. Despite the surge, overall losses remained 37% lower than in 2022. Ethereum was the primary target for scammers, with access control breaches driving $1.9 billion in losses across 67 incidents. Smart contract exploits accounted for $456.8 million, while a single address poisoning incident resulted in $68.7 million in stolen funds. Efforts to combat fraud recovered $1.3 billion this year, thanks to on-chain investigators such as ZachXBT and bug bounty programs.
The first quarter of the year saw the highest number of cyber incidents, with 53 cases recorded. However, the largest financial losses occurred in the third quarter, totaling $760 million. Significant incidents included a $305 million breach of DMM Exchange due to a compromised private key, a $235 million hack targeting WazirX through a multi-signature wallet vulnerability, and $52 million in losses suffered by BingX after hot wallet exploits. The Cyvers report indicated that access control incidents comprised 81% of the total losses despite making up only 41.6% of all reported cases.
With the rise of pig butchering scams and cyber threats in 2024, it is essential for individuals to be vigilant and educate themselves about the risks associated with investing in cryptocurrencies. Enhanced wallet security measures, stricter regulations for crypto platforms, and real-time monitoring systems can help mitigate potential losses. Additionally, the efforts of on-chain investigators and bug bounty programs have been instrumental in recovering stolen funds and combating fraudulent activities. As the crypto landscape continues to evolve, staying informed and implementing proper security measures are key in protecting oneself from falling victim to scams and cyber threats.
