Pig butchering scams led to $3.6 billion in crypto losses in 2024, rising as essentially the most vital fraud scheme of the yr, in line with a report by web3 safety agency Cyvers.
The long-term fraud technique, the place victims are groomed over time to make substantial investments, outpaced different types of crypto scams in 2024. The report highlighted that $3.6 billion in stolen funds had been traced to the Ethereum (ETH) blockchain alone.
Pig butchering on the rise
Cyvers tracked over 150,000 addresses and 800,000 transactions linked to pig butchering scams, illustrating the size of the issue. The report follows an FBI announcement that estimated $3.96 billion in losses from pig butchering schemes in 2023.
The report additionally emphasised scammers’ evolving sophistication, noting that many victims had been lured by means of relationship apps and social media platforms. Scammers created pretend profiles, constructed belief over weeks or months, and satisfied victims to spend money on fraudulent crypto platforms that appeared respectable.
In response to the rise in pig butchering scams, Cyvers advisable elevated consumer schooling, enhanced pockets safety measures, and stricter rules for crypto platforms. The agency additionally highlighted the significance of real-time monitoring and superior menace detection techniques to mitigate potential losses.
Cyber threats and recoveries
Cyber threats elevated by 40% in 2024, leading to $2.3 billion in losses throughout 165 incidents. Regardless of the surge, general losses remained 37% decrease than in 2022.
Ethereum was the first goal for scammers, with entry management breaches driving $1.9 billion in losses throughout 67 incidents. Sensible contract exploits accounted for $456.8 million, whereas a single deal with poisoning incident resulted in $68.7 million in stolen funds.
Efforts to fight fraud recovered $1.3 billion this yr, due to on-chain investigators equivalent to ZachXBT and bug bounty applications.
The yr’s first quarter noticed the best variety of incidents, with 53 instances recorded. Nevertheless, the biggest monetary losses occurred within the third quarter, totaling $760 million.
Vital incidents included a $305 million breach of DMM Trade on account of a compromised personal key, a $235 million hack concentrating on WazirX by means of a multi-signature pockets vulnerability, and $52 million in losses suffered by BingX after sizzling pockets exploits.
The Cyvers report indicated that entry management incidents comprised 81% of the entire losses regardless of making up solely 41.6% of all reported instances.
