Losses due to cryptocurrency fraud reach 500 million USD by 2024

Phishing attacks by crypto wallet withdrawal tools reached alarming levels in 2024, with around $500 million stolen. More than 330K addresses were affected, sho...

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Phishing attacks by crypto wallet withdrawal tools reached alarming levels in 2024, with around $500 million stolen. More than 330K addresses were affected, showing widespread impact on cryptocurrency users.

This situation increased sharply by 67% compared to 2023, highlighting the increasing sophistication of these malicious schemes, according to Scam Sniffer.

Ethereum leads in cryptocurrency phishing losses as attacks evolve

Thefts happen in waves. The first quarter (Q1) of 2024 was the most damaging, with $187.2 million in losses and 175K reported victims. March was especially devastating, recording losses of $75.2 million, making for the highest figure for the month of the year.

Monthly Crypto Phishing Losses. — Monthly cryptocurrency phishing losses. Source: Scam Sniffer

Quarter 2 and Q3 (Q2 and Q3) accounted for a total of $257 million in losses from 90K addresses. The fourth quarter (Q4) recorded a significant decline in both the number of victims and total losses, with $51 million stolen from 30K victims. This decrease shows that user awareness and security measures have improved as of late.

Grand theft remains a significant problem, with 30 cases exceeding $1 million each, totaling $171 million. The first half of the year mainly involved small-scale thefts ranging from $1 million to $8 million each.

However, the second half saw larger attacks, with August and September recording major losses of $55 million and $32 million. These two months alone contribute more than half of the year’s total from major crops.

Ethereum suffered the heaviest losses, followed by Arbitrum, Base, Blast and BNB Chain. In terms of attacked assets, staking and restaking tokens were the hardest hit, followed by stablecoins, Aave collateral, and Pendle interest-bearing assets.

Meanwhile, the landscape of wallet withdrawal tools has evolved throughout the year. In the first half of 2024, three major players — Angel, Pink and Inferno — took control.

Crypto Wallet Drainers Evolution. — Development of tools for withdrawing money from cryptocurrency wallets. Source: Scam Sniffer

Angel leads with 41% of the market, while Pink and Inferno hold 28% and 22% respectively. In May, Pink left the market, leaving Angel and Inferno fighting for position. By the fourth quarter, Angel had acquired Inferno, signaling further consolidation in the sector. Meanwhile, new players emerge, adding complexity to the ecosystem.

The spike in phishing attacks and wallet withdrawals in 2024 highlights the importance of adopting strong security practices and user education to minimize risk in the money landscape. This ever-changing electron.