- The cryptocurrency industry lost nearly $2 billion to hacks and exploits in 2023.
- A significant proportion of the total loss was attributed to phishing scams.
- Hackers utilized crypto-related Wallet Drainer malware.
The cryptocurrency industry has become a prime target for malicious actors who seek to exploit project weaknesses for their own gain. In 2023, crypto-related cybercrimes siphoned nearly $2 billion, attributed to over 160 flash loan exploits and cyber attacks.
Despite a 50% decline in industry vulnerability compared to previous years, the infamous trend of phishing scams remains unrelenting, constituting a significant portion of the assets lost in 2023.
Phishing Scams Epidemic
On Monday, January 1, Web3 security platform Scam Sniffer reported the loss of $295 million by 324,082 crypto users who fell victim to phishing attacks in the past year.
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The hackers employed ‘Wallet Drainers,’ a crypto-related malware deployed on phishing websites to grant threat actors unauthorized access to unsuspecting users’ accounts.
The phishing activities were cunningly devised through various methods, including SIM swaps, fraudulent airdrops, fake Google and Twitter ads, and spam social media comments and mentions.
Two infamous Wallet Drainers, Inferno and Monkey Drainer, orchestrated major heists this year before their reported exposure, siphoning off over $81 million and $16 million over months.
Scam Sniffer highlighted that hackers have become adept at circumventing promotion guidelines on trusted social media platforms like Google and Twitter, enabling them to promote malicious URLs to a broader range of investors.
January 2023 started on a bad note for Orbit; find out more:
Orbit Cross-Chain Bridge Hit for $82 Million
Industry analysts weigh in on long and short-term performance of Bitcoin ETF, read more:
Bitcoin ETF Hopes May Be “Overestimated”: VanEck Adviser
