Cybercrime Causes $356.53 Million Loss in Crypto Industry in November 2023
In November 2023, the crypto industry experienced a significant increase in cybercrime, resulting in a staggering loss of $356.53 million. This alarming figure, reported by Beosin EagleEye, indicates a 6.9-fold rise compared to the losses in October, shedding light on the escalating security challenges faced by the digital currency sector.
Crypto Hacks on the Rise Once Again
Two major security breaches played a central role in this financial upheaval, with each breach surpassing $100 million. Poloniex, a prominent crypto exchange, suffered a profound breach, losing approximately $126 million. Another attack targeted HTX and its associated HECO Bridge, contributing to 66% of the total losses from hacker attacks in November. Notably, both incidents were linked to enterprises owned by Justin Sun, highlighting the increasing sophistication and scale of cyberattacks on major cryptocurrency platforms.
Increased Phishing Incidents and Other Crypto Crime Vectors
The hack on Poloniex likely involved a complex compromise of private keys and is part of a broader trend of increased phishing incidents. Hackers targeted several individual accounts, each containing over $1 million. Additionally, various types of fraud and money laundering cases involving over $100 million have been observed.
Stay Vigilant, Stay Secure
The total loss from exchange-based security incidents (CEX and DEX) alone amounted to $215 million. These figures emphasize the urgent need for a reevaluation of security practices within the industry. Large projects are advised to enhance their private key management, conduct regular security audits, establish comprehensive emergency plans, and improve security awareness training for their employees.
Furthermore, the increase in phishing scams underscores the importance of securely storing private keys, carefully reviewing transactions before signing, and remaining vigilant against suspicious content.
Hot Take: Crypto Losses Reach $1.75 Billion
According to ImmuneFi data, losses due to crypto hacks and fraud have now reached a staggering $1.75 billion. This highlights the pressing need for enhanced security measures and increased awareness within the crypto industry to mitigate the growing risks of cybercrime.
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