Cryptocurrency scammers have been on the rise in the first half of 2024. Scammers manage to extract up to $60 million from 20 victims. The total value of cryptocurrencies stolen through scams was $314 million, up 6.44% from the same period last year. This represents a worrying trend in the sector as unscrupulous actors persist in exploiting users’ weaknesses for financial gain.
Detailed information on the strategy of cryptocurrency scammers
Scam Detector Data shows that phishing scams have proven to be highly profitable, with fraudsters raking in over $300 million from various EVM chains. Some 260,000 people fell victim to these scams, highlighting the widespread nature of the problem.
Scam Sniffer's stats are shown in his latest tweet. Source: x
Among the alarming statistics, the scammers managed to steal approximately $58 million from just 20 victims. One victim alone lost $11 million, making it one of the largest individual losses in the history of the scam. Cryptocurrency theftScam Sniffer attributes these incidents to the exploitation of phishing techniques involving signatures such as Permit, IncreaseAllowance, and Uniswap Permit2. These methods allow scammers to take control of victims’ assets without requiring further permissions.
Victims are often lured through phishing comments on social media platforms and forums, which lead them to malicious websites where they unwittingly execute transactions from their uncustodial wallets. This method allows scammers to gain control of victims’ funds, exploiting their trust and lack of awareness about security risks.
In response to these growing threats, efforts to combat crypto fraud have been stepped up. Slow fogScam Sniffer’s parent company, reported that it froze approximately $20.66 million in stolen funds across multiple platforms in the second quarter alone. This underscores the ongoing battle against private key leakage, phishing, and other forms of fraudulent activities plaguing the industry.
Bitget’s latest research adds to the complexity by showing a rise in deepfake-related crypto fraud, with losses exceeding $79.1 billion since 2022. According to predictions, quarterly losses could reach $10 billion by 2025. In 2024 alone, losses increased by a staggering 245% due to the popularity of deepfake technology.
Final Thoughts
While the cryptocurrency sector presents innovative opportunities, there is always a risk of fraud, especially from cryptocurrency scammers. Vigilance and proactive measures are critical to protecting assets in this rapidly changing digital ecosystem, as stakeholders strive to improve security processes and increase user awareness.
