The year 2024 has been about many things, one among them was a shift in the crypto industry to the increase in phishing as one of the worst forms of cyber threats, with 296 attacks, which cost the industry $1.05 billion. According to Certik’s Hack3d report, this represents 40% of the Crypto stolen so far last year, demonstrating that phishing remains the most effective cyber attack tool yet.
Overall, on average, each phishing attack cost $2.8 million and the median was $207,556. In reality, despite the hacker’s decision to refund $213 million to victims, the adjusted loss approximated a depleting $836 million.
The largest number of attacks, 248, were directed at the Ethereum network, with the loss amounting to $297.5 million overall. Binance Smart Chain (BSC) was used in the attacks and was another common target of the phishers.
And from a year-to-year basis, the losses through Phishing attacks have gone up drastically. The actual losses were rising as well, especially in 2023-2024 when they jumped to 328%, which proves that such attacks escalated not only in frequency but also in the level of sophistication.
Why Do Phishing Attacks Work?
Phishing does not attempt to breach technical safeguards, instead it exploits the weaknesses of the users to provide the perpetrator with things like a private key or wallet password. Phishing emails, fake websites, and spoofing messages are the options that have remained most popular among scammers.
In the context of cryptocurrencies, its one unique feature is that once a transaction is signed, it cannot be stopped or reversed, this is where phishing gets especially dangerous.
How can one stay safe from Phishing attacks??
When coming to protecting ourselves against falling prey to phishing attacks, a few easy precautions and measures can go a long way in safeguarding our crypto. Try to not trust and be sceptical of messages or any forms of communication from unfamiliar sources. Always verify the legitimacy of links and senders before clicking on any.
One of the safest measures is to use hardware wallets to store excess crypto, it serves as a layer which hackers cannot pass. When transferring funds ensure that you check the wallet address of the recipient to ensure that it has not been changed or address poisoned.
To increase further security, two-factor authentication can be enabled along with regularly updating software plus using anti-phishing tools like web extensions. Perform all actions related to cryptocurrency through secure, safe networks, as connection through public Wi-Fi comes with high risks like phishing and man-in-the-middle attacks.
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