According to the report, in the first six months of 2024, cybercriminals stole $1.38 billion from crypto investors. This figure represents an almost double increase compared to the theft of $657 million recorded in the same period in 2023. This increase reveals the security vulnerabilities of the crypto industry and the tendency of cybercriminals to increasingly exploit these vulnerabilities.

What’s even more concerning is that a significant portion of these thefts are caused by a few major security vulnerabilities. Analysts point out that the first five major attacks accounted for 70% of the total loss. This underlines the need for crypto exchanges and cryptocurrency projects to strengthen their security measures. Investors should question the cyber security practices of the platforms where they store their cryptocurrencies and investigate their reliability.

The incident that took place in May 2024 is a striking example of the security weaknesses of the crypto industry. Japan-based crypto exchange DMM Bitcoin lost more than 4,500 Bitcoins as a result of a cyber attack. This loss was worth approximately $300 million at the time. Although it is not known exactly how the attack occurred, TRM Labs suggests the possibility of “stolen private keys or address poisoning.” Private keys and seed phrases are critical information for storing cryptocurrencies. Theft of this information means loss of crypto assets.

TRM Labs analysts emphasize that these methods are frequently used in crypto theft cases in the first half of 2024. Smart contract attacks and flash loan attacks are among other threats faced by crypto investors. Smart contracts are codes designed to automatically execute transactions in cryptocurrencies when certain conditions are met.

However, if there are security vulnerabilities in these contracts, attackers can steal cryptocurrencies by exploiting these vulnerabilities. Flash loan attacks are a fraud method used on decentralized finance (DeFi) platforms. In this method, attackers borrow large amounts of money and manipulate the market to quickly transfer the stolen assets to another account and escape from the platform without paying the debt.

Although the amount of theft in the first half of 2024 has increased significantly compared to 2023, it still lags behind the same period in 2022, which saw record levels of theft. However, this is not enough for investors to relax.

The research institution called Scam Sniffer draws attention to phishing scams. In this fraud method, fraudsters steal investors’ cryptocurrencies by creating fake crypto exchange interfaces or applications. Scam Sniffer’s data shows that in the first half of 2024, phishing scammers stole over $300 million by targeting approximately 260,000 victims on EVM chains (Ethereum Virtual Machine compatible chains). This figure represents an increase of 6.44% compared to 2023.

What’s even more alarming is that a single victim lost $11 million worth of cryptocurrency. This figure was recorded as the second largest theft in crypto history.

These data reveal the extent of the threats faced by cryptocurrency investors. Although cryptocurrencies offer potentially high returns, they carry more risks compared to traditional investment instruments. Investors should carefully evaluate these risks before investing in cryptocurrencies and take precautions to protect themselves.