Web3 Theft Hits Yearly Low in October; CertiK Highlights Rising Cyber Threats
Summary:
In October, Web3 theft reached a record low with losses amounting to $32.2 million across 38 incidents, according to blockchain security firm CertiK. The decrease does not represent a steady downturn, but rather a lack of major theft incidents. An increase was noted in exit scams, especially on social media platforms. CertiK cited US Federal Trade Commission data showing nearly half of all cryptocurrency scams over the past 18 months are tied to social media, presenting diverse opportunities for fraud. North Korea's Lazarus Group remains the leading cyber threat.
October marked the year's least financially impactful month for Web3 theft, as disclosed by blockchain security company CertiK. The firm verified that throughout the month, a total of 38 accidents led to collective losses amounting to $32.2 million, with no singular event resulting in a loss exceeding $7 million. When compared to the cumulative total of $1.4 billion over ten months, October's losses reflect approximately a quarter of the average monthly losses. The relatively low figure during this month does not represent a regular drop in such incidents, but rather signifies a lack in significant events. The total count of 38 incidents in October was also a record low.
Looking at CertiK's third-quarter report, we see that the number of cases in July hit 79, which then slid to 66 in August, followed by another decrease to 39 in September. The only increase witnessed was in exit scams, which, in October, were four times the lowest figure recorded in September. The highest increase in this category was in May, when Fintoch's crypto project subscribers lost close to $32 million.
A noteworthy increase in exploits was seen in September, primarily due to a cloud service provider's breached security, resulting in a $200 million loss for the Mixin Network. July followed suit with massive damages, primarily linked to losses from the Multichain MPC bridge. As an important note, there is a rising threat from Crypto Social Media Scams. The widespread network of social media coupled with cryptocurrency’s overarching, often cryptic decentralization, provides a favorable backdrop for fraudulent activities.
CertiK has identified visible trends in cybercrime involving cryptocurrency. According to the data provided by the United States Federal Trade Commission, almost half of all cryptocurrency scams in the past year-and-half were linked to various social media platforms. These platforms provide a wide array of fraudulent opportunities, including tactics such as pump and dump and pig slaughtering. In their third-quarter report, CertiK identified the Lazarus Group from North Korea as the leading threat.
Published At
10/31/2023 5:16:02 PM
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