- February saw scammers relentlessly targeting unsuspecting market participants.
- Exit scams emerged as particularly effective.
- As the crypto market buzzes excitedly, prioritizing due diligence has become crucial.
February has been a whirlwind of excitement for the crypto market as Bitcoin and altcoins aggressively charge toward a new all-time high after enduring an underwhelming two-year bearish cycle. However, just as market participants cheer the rising prices, a darker reality awaits them: crypto scammers and hackers looking to exploit the frenzy.
Crypto Scams Relentless in February
Blockchain security and smart contract audit firm Certik reported that the crypto industry saw losses totaling over $160 million in February, bringing the year-to-date losses to a staggering $343 million.
The breakdown reports crypto exit scams claimed the lion’s share at $58.2 million, followed closely by exploits at $101 million. Phishing attacks accounted for $14.6 million, while a mere $6.4 million was successfully recovered. Flash loans incurred minimal losses at $138k.
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Hong Kong-based crypto exchange BitForex suffered the biggest blow, with its hot wallets compromised for over $56 million. Crypto gaming platform PlayDapp closely trailed with over $32 million in losses to hackers. FixedFloat also received a noticeable dent, with the decentralized exchange losing upwards of $26 million in Bitcoin and Ether.
With the crypto market shaking with excitement, scammers are not shying away from capitalizing on the frenzy as they look to prey on unsuspecting investors to line their pockets.
How to Stay Safe From Crypto Scams?
Amidst the hype and noise in the crypto market, market participants must prioritize their security and perform thorough due diligence. While crypto exploits, exit scams, and phishing attempts are unfortunately quite common in the industry, they are also largely preventable.
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Here’s a quick list of tips that come in handy:
- Keep your wallet seed phrase private from everyone on the internet.
- Double-check links and websites. Look for links that are hypertext, check slugs, and inspect buttons.
- Check other social media channels to ensure the news is real.
- Verify and scan all addresses, such as contract, sender, and others, before doing anything permanent.
- Ask for help from officials, and prioritize your safety and security.
On the Flipside
- Crypto users lost $1.8 billion to hacks and scams in 2023.
- Certik itself fell victim to a cyber attack on its official Twitter (X) page in January this year.
Why This Matters
With Bitcoin, Ethereum, and other altcoins teetering on the brink of their all-time highs, excitement levels are soaring. However, market participants risk overlooking due diligence amidst the hype in pursuit of rapid gains. It’s crucial to prioritize safety, conduct thorough research, and exercise caution.
Catch up on Cardano’s rally:
Cardano (ADA) Marks New Yearly High in Bitcoin-led Rally
Read more about the BitForex scam:
Here’s Why BitForex Is Stirring Exit Scam Fears Among Users
