Crypto scams evolved in 2024, with “pig butchering” scams draining $3.6 billion globally, according to Web3 security firm Cyvers.

A Rising Tide of Crypto Scams

The Cyvers report highlighted a 40% increase in cyberattacks compared to 2023. Despite a decline from the 2022 fraud peak, 165 documented incidents in 2024 inflicted $2.3 billion in damages.

Key figures from the report include:

• Access control breaches: 67 incidents caused $1.9 billion in losses
• Smart contract vulnerabilities: 98 incidents led to $456.8 million in damages
• Address poisoning attacks: One major case resulted in $68.7 million in losses

These figures underscore security weaknesses in blockchain networks and decentralized applications.

Ethereum: The Most Targeted Blockchain

Ethereum was the top target for scammers, accounting for the largest share of crypto fraud losses. Cyvers recorded 800,000 fraudulent transactions involving over 150,000 addresses on the Ethereum network.

The platform’s accessibility enabled scammers to send over 100,000 small payments to lure victims.

What Is “Pig Butchering”?

“Pig butchering” is a scam where victims are groomed through repeated contact. Scammers use unsolicited messages to build trust and draw individuals into fake crypto schemes. Once trust is established, smaller investments are siphoned off before escalating to significant amounts—often in Tether (USDT).

Funds are laundered through exchanges like Binance, HTX, OKX, and Coinbase before being cashed out.

Major Hacks of 2024

A notable incident was the $235 million theft from WazirX, stemming from a vulnerability in its multi-signature wallet system. This ranks as one of the largest attacks in 2024.

Combating Crypto Scams

Deddy Lavid, CEO of Cyvers, emphasized the importance of user education in combating these scams. Transparency in exchange operations and heightened user vigilance are critical to reducing their success.

The Path Forward

As scammers grow more sophisticated, the crypto community must prioritize awareness and security measures to stay ahead of evolving threats.