- The use of cryptocurrency and blockchain technology by businesses has increased, but so have security incidents including theft, phishing, and fraud.
Leading blockchain security company SlowMist has published its MistTrack Stolen Funds Analysis report for the second quarter of 2024, which looks at cryptocurrency thefts.
467 reports of stolen assets were received by SlowMist’s MistTrack Team in Q2, resulting in the freezing of almost $20.66 million in funds over 13 platforms.
Based on these statistics, the company outlined three significant industry flaws that contributed to cryptocurrency theft and described the steps customers should take to safeguard their money.
Leakage of private keys
Users are susceptible to credential-stuffing attacks and phishing scams because they frequently keep private keys in cloud services like Google Docs and Baidu Cloud or distribute them over messaging apps like WeChat.
During the quarter, counterfeit wallets were another risk. Even though it’s a well-known problem, people still download phony wallet programs from unaffiliated websites, jeopardizing their security.
Phishing
Phishing is still a common issue, especially when it comes via malicious URLs left in Twitter comments from well-known projects.
According to SlowMist, phishing groups impersonate legitimate Twitter accounts and leverage promotion tools to lend their legitimacy. This allows them to fool users into clicking on phishing links, which compromises their personal information.
The study issued a warning, advising readers to exercise caution and always verify links before clicking them, particularly in comments left under tweets from well-known projects.
Phoniness
In Q2, honeypot techniques are the most prevalent kind of fraud. Promises of large profits on fresh tokens are used by con artists to entice victims. These tokens are unsellable once acquired, trapping the victim’s money. The majority of honeypot instances take advantage of the excitement surrounding meme and shitcoins and happen on the Binance Smart Chain (BSC).
The report advised cryptocurrency users to use tools like Scam Sniffer to stop phishing efforts and raise their awareness in order to guard against these risks. In addition, users ought to verify addresses with MistTrack or GoPlus’s Token Security Detection, examine contract audits on Etherscan or BscScan, and thoroughly investigate the histories of projects.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
