Crypto Scams Hit $3B in 2024 - How to Protect Your Investments from Rising Threats

During 2024, hacks and scams have escalated to new heights, resulting in a huge $3.01 billion in losses, a 15% increase from the $2.61 billion recorded in 2023. For investors, the stakes have never been higher, and protecting your assets is no longer optional, it’s important. In this blog, we will learn about what’s going on, why it’s happening, and how you can become an entrepreneur by contacting a crypto wallet development company.

The Alarming Rise in Crypto Crimes Crypto scams and hacks aren’t just news headlines anymore, they’re becoming a harsh reality for many investors. According to blockchain forensic firm PeckShield, a huge $2.15 billion of the total losses in 2024 came from hacks alone, while scams contributed $834.5 million. While some stolen funds around $488.5 million were recovered, the sheer scale of these crimes is unsettling. Decentralized Finance protocols continue to be the prime targets, contributing the lion’s share of the losses. Over 70% of the total losses stemmed from hacks, with scams accounting for the remaining 30%. High-Profile Heists of 2024 Some of the biggest crypto crimes of the year were enough to make even experienced investors double-check their wallets. Let’s see some of the largest heists in the history. DMM Bitcoin: The Japanese crypto exchange suffered a massive $350 million hack. PlayDapp: This gaming-concentrated platform lost $290 million. BTC Scam: A cleverly orchestrated scam drained $238 million. WazirX: The Indian exchange was targeted for $230 million. Gala Games: The gaming giant saw $212 million vanish into thin air. The numbers represent thousands of investors who’ve lost their hard-earned money. Why Are Crypto Crimes on the Rise? The reasons behind the increase in crypto crimes are as different as the scams themselves. The hackers are finding new ways to use access control flaws, which accounted for 78% of losses in 2024. These vulnerabilities affect everything from DeFi platforms to gaming and metaverse projects. While DeFi provides incredible chances, it’s still a relatively new and growing industry. Its decentralized nature makes it a favorite place for cybercriminals. Despite increasing awareness, many investors still fall for phishing attacks, fake websites, and too-good-to-be-true investment chances. Monthly Trends in Losses Not all months are affected equally in 2024’s crypto crime spree. Many were the worst, with losses peaking at $662.2 million. July and August weren’t much better, each exceeding $280 million. Thankfully, the year ended on a slightly better note, with December seeing the lowest monthly losses at $46.5 million. How to Safeguard Your Investments With threats growing, protecting your crypto assets is more important than ever. You can use secure wallets like a hardware wallet (cold wallet) is one of the safest ways to store your crypto. Unlike hot wallets connected to the internet, hardware wallets are offline and much harder to hack. Adding an extra layer of security, like MFA, makes it significantly harder for hackers to access your accounts, even if they have your password. Always double-check URLs, emails, and messages claiming to be from crypto companies. Make sure that your wallets, exchanges, and devices are updated with the latest security patches. Outdated software is an open invitation to hackers, so be aware. Then spread your investments across multiple platforms and wallets to decrease risk. Entrepreneurs: The Chance to Build Safe Solutions As the threats to crypto assets grow, so does the demand for secure solutions. Entrepreneurs can use this chance to make a difference and profit by developing software to safeguard investments. Why Build a Crypto Wallet? Crypto investors are actively seeking better ways to protect their funds. By partnering with a crypto wallet development company, you can create a secure, feature-rich wallet that addresses the pain points of today’s investors. Use improved security like integrating multi-signature authentication, biometric access, and end-to-end encryption. Make your product simple for users to navigate without compromising on safety. Then allow easy interaction with DeFi platforms while confirming top-notch security, and notifying users of suspicious activities or transactions. Final Words As an investor, being vigilant and proactive is the best way to protect your hard-earned assets. And for entrepreneurs, now’s the best time to offer solutions that can truly make a difference. Together, we can turn the tide against crypto crimes and make 2025 a safer year for everyone in the industry.