August witnessed a dramatic rise in crypto-related scams, with losses totaling $310 million, marking the second-highest monthly total of 2024. According to CertiK, a blockchain security firm, $10.3 million of these assets were recovered, leaving a net loss of $300.6 million.
Phishing scams were the most damaging, accounting for about $293 million of the total losses. Two major phishing attacks alone resulted in the theft of $238 million in Bitcoin and $55 million in DAI stablecoin.
Other significant incidents included an exploit of the Ronin Network on August 6, where a white hat hacker stole 4,000 ETH, worth $9.85 million at the time. Flash loan attacks, though still a concern, resulted in a lower total loss of $1.2 million for the month.
In contrast, exit scams saw a substantial decline, with losses dropping to $800,000 in August from approximately $3 million in July. Scammers have increasingly targeted cryptocurrency ATMs and kiosks, leading to over 2,000 complaints from individuals over 60, according to the FBI’s Internet Crime Complaint Center.
Decline in Illicit Crypto Transactions in 2024
A Chainalysis report released on August 15 shows a decrease in overall illicit cryptocurrency transactions in 2024, despite a rise in specific criminal activities. The report highlights that while the number of hacking incidents increased slightly by 2.8% year-over-year, the average value stolen per hack surged significantly.
By the end of July, stolen cryptocurrencies had amassed a total value of $1.58 billion, representing an 84% increase from the same period in 2023. Federal agencies, including the FBI and the U.S. Department of Justice, have intensified efforts against international fraud rings, including cracking down on nearly 3,000 “money mules” who assist in laundering stolen funds.
