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 were relentless, successfully stealing millions of dollars from various crypto protocols.
Cryptocurrency hacks are on the rise, with a significant increase in cyber attacks reported by the blockchain cybersecurity company Immunefi in the second quarter of 2024. The number of attacks has more than doubled compared to the same period in 2023, resulting in financial losses rising from $2.2 billion to $5.72 billion. Preliminary data for 2024 shows a decrease in losses from cryptocurrency attacks in the first quarter, dropping by 23%. However, a dramatic shift occurred in late May when DMM Exchange lost $305 million in assets, significantly impacting overall losses.
This quarter deviated from the norm, with centralized exchanges bearing the brunt of the attacks, accounting for 70% of the total losses of $4.01 billion. In contrast, losses in decentralized finance (DeFi) protocols decreased by 25%, reaching $1.71 billion. Ethereum and BNB Smart Chain remain prime targets for cyber attackers, with 71% of DeFi losses occurring on these platforms.
Attacks on Ethereum’s layer 2 solutions have also surged, with Arbitrum network experiencing four attacks resulting in 5.5% of the losses. Mitchell Amador, the founder of Immunefi, emphasized that these attacks highlight the vulnerability of centralized exchange infrastructure, despite fewer events, causing higher financial losses than the DeFi industry.
Key insights into crypto security:
– Centralized exchanges remain highly vulnerable and lucrative targets for cybercriminals.
– DeFi protocols on Ethereum and BNB Smart Chain are frequent targets of attacks, with second-layer solutions like Arbitrum becoming new targets for hackers.
– A vulnerability in centralized infrastructure can lead to significant financial losses.
Recent trends underscore the importance of strengthening 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 constant vigilance and improvement of security protocols.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware of the high volatility of cryptocurrencies, which involves risks, and should conduct their own research. Follow our news on Telegram, Twitter (X), and Coinmarketcap.