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In the first half of the year, crypto investors suffered a loss of $664 million to hackers, which is more than a 50% increase compared to the same period last year, as reported by DefiLlama.
The majority of these losses were due to phishing attacks and compromised private keys.
It was noted that the hackers involved were often skilled individuals working for cybercrime syndicates, such as North Korea’s Lazarus Group, which is suspected of stealing billions in crypto. DefiLlama also stated that high-powered hacking tools were not typically available to amateur hackers on the internet.
There are growing concerns about the threat posed by open-source infostealers, which are designed to steal sensitive financial information from victims’ computers.
These infostealers specifically target crypto wallet passwords, private keys, and other sensitive data. Compromised private keys have been linked to some of the biggest crypto hacks this year, including the $305 million theft from the DMM Bitcoin exchange.
Adewale Kayode, a blockchain expert and Team Lead at SIRFITECH, highlighted Nigeria as a hub for cryptocurrency scams, ranking second globally in crypto adoption after India.
Kayode attributed this high adoption rate to economic hardship, with many individuals seeking alternative means to supplement their income.
However, this has also created an opportunity for scammers, resulting in a significant $8 million lost to crypto scams in Nigeria alone over the past six months.
Globally, crypto scams are becoming more sophisticated, with fraudsters using multi-level marketing scams, crypto fraud, Ponzi schemes, fake ICOs, and phishing attacks to deceive victims.
