August saw a surge in crypto-related scams, with a staggering $310 million lost to various exploits, making it the second-highest monthly total this year.
According to a report from blockchain security firm CertiK, $10.3 million of the stolen assets were eventually recovered or returned, leaving the net loss at $300.6 million.
Phishing incidents emerged as the most damaging, accounting for approximately $293 million of the total losses.
Two Phishing Attacks Lead to Loss of $238M
Two particularly large-scale phishing attacks resulted in the theft of $238 million in Bitcoin and $55 million in DAI stablecoin.
Aside from phishing, other notable losses in August included attacks on several crypto projects.
For instance, the Ronin Network, an Ethereum Virtual Machine (EVM)-based sidechain, was exploited by a white hat hacker on August 6, resulting in the theft of 4,000 ETH, valued at $9.85 million at the time.
Additionally, flash loan attacks, though still concerning, resulted in relatively lower losses of $1.2 million in August compared to previous months.
In contrast to the rise in phishing and other forms of exploitation, exit scams saw a significant decline, with losses dropping to $800,000 in August, down from around $3 million in July.
As reported, scammers are increasingly incorporating crypto ATMs and kiosks into their fraudulent schemes, exploiting these digital currency exchange points to swindle unsuspecting victims.
According to the FBI’s Internet Crime Complaint Center, over 2,000 complaints involving the use of cryptocurrency ATMs and kiosks were filed in 2023 by individuals over the age of 60.
Illicit Crypto Transactions Drop in 2024
A recent Chainalysis report revealed a decline in overall illicit cryptocurrency transactions in 2024, even as specific types of criminal activities within the sector surged.
Released on August 15 as part of the mid-year crypto crime update, the report found that hacking and ransomware attacks were becoming increasingly prevalent.
Two categories, in particular – stolen funds through hacking and ransomware attacks – have seen an uptick.
By the end of July, the cumulative value of stolen cryptocurrencies had reached $1.58 billion – an 84% increase compared to the same period in 2023.
While the number of hacking incidents only increased slightly (2.8% year-over-year), the average value stolen per hack surged dramatically.
Earlier this year, federal agencies, including the FBI and the U.S. Department of Justice, cracked down on nearly 3,000 “money mules” – individuals who collect and transfer money on behalf of international fraud rings.
These crime networks have even gone so far as to recruit college students to collect payments from victims and open fraudulent bank accounts to funnel the illicit proceeds.
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