Cybercriminals have stolen over $103 million of funds from crypto projects and investors in April 2023 through a variety of means, such as exploits, exit scams, and flash loan attacks. This comes as the financial threat landscape has shifted to new areas, such as the digital assets sector, following the mainstream adoption of crypto.
Major Crypto Exploits
According to CertiK, the total amount lost to crypto and decentralized Finance (DeFi) exploits in April was $74.5 million. The month was marked by significant exploits, such as the loss of $25.4 million due to several MEV trading bots, $22 million in a hot wallet exploit on the Bitrue exchange, and a hack of the South Korean GDAC exchange that resulted in a $13 million loss.
Flash Loan Attacks and Exit Scams
Fraudsters have become more sophisticated and are targeting unsuspecting investors, resulting in losses from exit scams and flash loan attacks. CertiK revealed that $9.3 million was drained in exit scams, while $19.8 million was lost to flash loan attacks. Investors have increasingly fallen prey to fraudsters who promise high returns and trick them into opening wallets and accounts on fake websites and transferring crypto coins to dubious accounts.
Yearn Finance was responsible for the top flash loan attack when a hacker exploited an old smart contract, siphoning more than $10 million. The top exit scam was led by Merlin DEX, which lost nearly $2.7 million.
DeFi Exploits
In February, decentralized finance (DeFi) platforms lost approximately $21 million to cybercriminals through various exploits such as reentrancy and price oracle attacks. In April, CertiK reported a total loss of $145 million in the first four months of the year, with $74.5 million lost in April alone.
Security First
As cryptocurrency-related frauds continue to be on the rise, it’s essential to take practical steps to safeguard your funds against malicious actors.
Firstly, choose a reputable and secure cryptocurrency exchange or wallet provider. Look for platforms that have a strong track record of security and have implemented robust measures like two-factor authentication (2FA) and multi-signature wallets to protect user funds.
Secondly, stay vigilant against phishing attacks and other scams. Be wary of unsolicited messages or emails that ask for your personal information or prompt you to download suspicious software.
Always verify the authenticity of the source and double-check the website’s URL before entering any sensitive information. Finally, consider using hardware wallets to store your crypto assets, which offer a high level of security by keeping your private keys offline and out of reach of hackers.
