Pig Butchering scams and crypto fraud surge in 2024, with $3.6B lost—stay cautious in crypto investments - IcoHolder.
In 2024, the cryptocurrency industry faced one of its most pervasive threats: Pig Butchering scams. These sophisticated fraud schemes, which have seen a massive rise this year, led to an astonishing $3.6 billion in stolen assets, according to a recent report by Cyvers, a Web3 security firm. The scams primarily targeted Ethereum, affecting over 150,000 wallet addresses across 800,000 transactions.
What Are Pig Butchering Scams?
Pig Butchering scams are highly elaborate frauds that involve criminals building close, personal relationships with their victims. Through these relationships, they manipulate investors into putting money into fake cryptocurrency platforms. Once the victims make substantial investments, the scammers disappear, leaving the investors with nothing. These scams have become notorious for their ability to deceive individuals over an extended period, with fraudsters often grooming victims before convincing them to part with large sums of money.
The impact of these scams has contributed to a 40% rise in cyber threats within the crypto industry this year, with many targeted individuals experiencing significant financial losses.
A Broader Threat: Access Control Breaches
While Pig Butchering scams made headlines, another significant contributor to crypto fraud in 2024 has been access control breaches. These types of attacks accounted for 81% of all crypto fraud incidents this year. According to the study, the financial losses due to access control breaches comprised 41.6% of all reported cases, signaling the urgent need to strengthen protective measures against unauthorized access and transfers in the crypto space.
Rising Digital Currency Theft and North Korean Involvement
The overall landscape of digital currency theft has also seen a significant rise. A report from Chainalysis revealed that digital currency theft in 2024 rose to $2.2 billion, based on 303 incidents—up from $1.8 billion in 2023. Notably, North Korean hackers were responsible for a staggering $1.34 billion of these thefts, more than double the amount they stole in 2023.
A noticeable shift has occurred from decentralized finance (DeFi) systems to centralized applications as primary targets for hackers. High-profile attacks on centralized exchanges, such as Japan’s DMM Bitcoin ($305 million) and India’s WazirX ($234.9 million), have highlighted the vulnerabilities of these platforms.
How Fraudsters Move Stolen Funds
To cover their tracks, hackers have increasingly turned to mixers and blockchain bridges, using these tools to move 90% of the stolen funds between different blockchain networks. Inadequate private key management has also played a major role, allowing fraudsters to steal 43.8% of the money from their victims.
While the crypto industry continues to attract interest, these rising risks serve as a stark reminder for investors to stay vigilant. Experts advise individuals to carefully vet all investment opportunities and to only trust reliable, well-established service providers. The rapid growth of crypto-related fraud underscores the need for heightened security measures and a cautious approach to crypto investments. As cyber threats evolve, both individual investors and firms must adapt their security protocols to safeguard their assets in this increasingly dangerous landscape.
