Pig butchering scams have become a growing concern in the crypto world, leading to a staggering $3.6 billion in losses in 2024. According to a report by Cyvers, a web3 security firm, this long-term fraud scheme has surpassed other forms of crypto scams to become the most significant fraud scheme of the year.
Cyvers’ investigation revealed that the stolen funds were primarily traced to the Ethereum blockchain, highlighting the scale of the problem. Over 150,000 addresses and 800,000 transactions were linked to pig butchering scams, showcasing the extent of the issue. This comes on the heels of an FBI report estimating losses of $3.96 billion from similar schemes in 2023.
The report shed light on the evolving tactics of scammers, who are now using dating apps and social media platforms to lure victims. By creating fake profiles and building trust over time, scammers convince victims to invest in fraudulent crypto platforms that appear legitimate.
In response to the rise in pig butchering scams, Cyvers has recommended increased user education, enhanced wallet security measures, and stricter regulations for crypto platforms. The firm also stressed the importance of real-time monitoring and advanced threat detection systems to mitigate potential losses.
In addition to pig butchering scams, cyber threats saw a 40% increase in 2024, resulting in $2.3 billion in losses across 165 incidents. Despite the surge, overall losses were 37% lower than in 2022.
Ethereum emerged as the primary target for scammers, with access control breaches driving $1.9 billion in losses. Smart contract exploits accounted for $456.8 million, while a single address poisoning incident led to $68.7 million in stolen funds.
Efforts to combat fraud were successful in recovering $1.3 billion this year, thanks to the diligent work of on-chain investigators like ZachXBT and bug bounty programs.
The report highlighted that the first quarter of the year saw the highest number of incidents, with 53 cases recorded. However, the third quarter saw the largest financial losses, totaling $760 million.
Notable incidents included a $305 million breach of DMM Exchange due to a compromised private key, a $235 million hack targeting WazirX through a multi-signature wallet vulnerability, and $52 million in losses suffered by BingX after hot wallet exploits.
Access control incidents accounted for 81% of the total losses, despite making up only 41.6% of all reported cases, indicating the need for enhanced security measures in the crypto space.
Overall, the rise of pig butchering scams and cyber threats in 2024 underscores the importance of vigilance and security measures in the crypto industry. As the landscape continues to evolve, it is crucial for users and platforms alike to stay ahead of scammers and protect their investments.