Crypto losses dropped to $29M in December 2024, marking the year’s lowest. Explore how scams and hacks are declining and what it means for investors.
The cryptocurrency sector has long battled the challenges of scams and hacking incidents. For years, the losses incurred by investors, platforms, and the community due to these malicious activities have run into billions of dollars. However, December 2024 brought a glimmer of hope, as losses from hacks and scams hit their lowest point of the year at $29 million, according to data from Certik and PeckShield.
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A Year of Challenges and a December Relief
The broader crypto industry faced substantial losses in 2024, with $2.2 billion stolen from platforms due to scams and hacks—a 21% increase compared to the previous year, as per Chainalysis data. For the fourth consecutive year, hacking and scam-related losses exceeded the $1 billion mark, underscoring the persistent vulnerabilities in the space.
However, December provided some respite. Certik reported that December’s losses amounted to $28.6 million, a sharp decline compared to $115.8 million in October and $63.8 million in November. Similarly, PeckShield data revealed a 71% decrease in losses compared to November.
Breakdown of December’s Losses
The $28.6 million loss in December stemmed from several types of attacks, with phishing scams being the most prominent. According to Certik, one victim lost a staggering $7.8 million to a phishing scam during the month.
Other notable incidents included:
- Gempad Exploit: Loss of over $2 million due to security vulnerabilities.
- FEG Exploit: A $1 million loss caused by a message verification process error.
While phishing scams topped the list, exit scams and exploits also contributed significantly to losses earlier in the year, particularly in October and November.
Top Hacks of December
PeckShield’s December analysis identified 25 hacking incidents resulting in losses exceeding $24.7 million. Among the most significant were:
- Last Pass: Losses of $12.38 million.
- Yetifinance: Losses of $2.2 million.
- Gempad: Another $2.2 million loss.
Yearly Insights from Cyvers’ Web Security Report
Cyvers’ 2024 Web Security Report revealed that the crypto industry experienced 165 major hacking incidents in 2024, resulting in $2.3 billion in losses—40% higher than 2023’s $1.69 billion.
Deddt Lavid, CEO of Cyvers, attributed this rise to security vulnerabilities in access controls, particularly at centralized platforms and crypto storage providers. The report highlighted the need for stricter access controls, advanced threat detection systems, and proactive security measures to mitigate risks.
What’s Behind the Decline in December?
The significant drop in December’s hacking and scam-related losses can be attributed to several factors:
- Enhanced Security Measures: Increased adoption of blockchain security solutions like Certik and PeckShield has likely played a role in minimizing vulnerabilities.
- Increased Awareness: Educational campaigns and heightened awareness among users about phishing scams and other common exploits have contributed to reducing the effectiveness of such attacks.
- Regulatory Pressure: Governments and regulatory bodies worldwide have been ramping up efforts to crack down on crypto fraud and improve industry standards.
A Sustainable Trend or Temporary Relief?
While December’s decline is encouraging, it’s too early to determine whether this marks a sustainable improvement in the fight against crypto scams and hacks. The overall trend for 2024 still indicates a significant rise in annual losses, emphasizing the need for continued vigilance.
To ensure that this positive shift becomes the norm rather than an anomaly, the industry must focus on:
- Strengthening Security Protocols: Platforms must prioritize regular audits, code reviews, and robust access controls to prevent vulnerabilities.
- Collaboration: Greater collaboration between security firms, regulatory bodies, and crypto platforms can lead to faster detection and response to threats.
- User Education: Empowering users with knowledge about recognizing and avoiding scams remains crucial.
Looking Ahead
The drop in losses for December 2024 offers hope for a safer crypto landscape. However, the challenges of securing decentralized platforms and preventing malicious activities remain significant.
As the crypto market continues to grow—currently boasting a market capitalization of $3.34 trillion—stakeholders must remain vigilant. With improved security measures, better regulation, and continued innovation, the crypto industry can aim for a future where hacking and scams are exceptions rather than the rule.
