Save
Crypto fraud booms as hackers become more sophisticated
Cryptocurrencies might be moving closer to the mainstream, but fraud and other misbehaviour in the space is more common than ever.
Crypto fraud booms as hackers become more sophisticated
Cryptocurrencies might be moving closer to the mainstream, but fraud and other misbehaviour in the space is more common than ever.
Breaches are still racking up billions of dollars of losses each year in the crypto space.
According to a new report released by Crypto Head, the number of crypto-related breaches and fraud in 2021 is set to break the current records when it comes to volume.
Crypto Head said that the number of offences in the crypto space has increased by 41 per cent every year on average, with the past 10 years amounting to a total bill of $19.2 billion in stolen assets.
“As hackers and their technology become more sophisticated, it’s clear that breaches are an increasingly big concern for the crypto world,” said Crypto Head editor James Page.
The report noted that while 2021 is expected to see crypto breaches and fraud reach a new high in volume, it’s likely to fall short when it comes to the overall value of losses compared with 2017.
Mr Page noted that “2017 was the year that saw hackers make the most money, stealing highs of $4.7 billion in total and $223.5 million on average”.
For comparison, 2021 so far has seen $2.9 billion in stolen crypto and an average of around $93 million per breach.
Other findings here included the detail that bitcoin is the most popular crypto asset involved, accounting for one-third of crypto breaches and fraud. Ethereum followed in second place, representing 12.8 per cent of breaches.
The US accounted for almost half of all breaches so far in 2021, followed by the UK and South Korea. Despite this, the average value of a breach in the US was somewhat lower than that of countries with fewer breaches, such as Japan and China.
“It wasn’t the most targeted entities that suffered the most, as Turkey lost the highest sum through the Thodex scam, which saw $2 billion stolen, followed by Japan ($1.2 billion stolen in total) and China ($1 billion stolen in total),” the report noted.
On top of these broader geographical trends, the report highlighted that the vast majority of cases can’t be tied to any one country, with a total of 91 instances of breaches and fraud left unlinked to any particular region.
According to Crypto Head, the most common type of crypto breaches involved the attacking of wallets and exchanges.
However, the report added that “it was cases of fraud that were the most lucrative for criminals, seeing perpetrators walk away with on average $365 million — over 14 times as much as breaches”.
The number of DeFi-related breaches is also said to be on the increase, in line with the rising popularity of the DeFi ecosystem.
RELATED ARTICLES
About the author
About the author
Scams
Trend Micro forecasts a new era of AI-driven scams by 2026
In a comprehensive report released today, cybersecurity leader Trend Micro Incorporated warns that 2026 will mark a significant turning point in the evolution of scams, driven by artificial ...Read more
Scams
Australians urged to stay vigilant as holiday scammers ramp up activity
As the festive season approaches, Australians are being warned to be on high alert for a surge in scam activities. With the increase in online shopping, travel bookings, and holiday preparations, ...Read more
Scams
Scam alert: Trend Micro warns Aussies to be vigilant as Black Friday approaches
As Australians prepare to dive into Black Friday shopping, cybersecurity firm Trend Micro has issued a stark warning about a surge in scam activities targeting eager consumers. According to a recent ...Read more
Scams
Economic stress leaves Australians vulnerable to job and financial scams
As Australians brace for the holiday season, a significant increase in job and financial scams is raising alarms. New findings from global cybersecurity leader Trend Micro Incorporated reveal that ...Read more
Scams
AI-driven investment scams explode: Millions of fraudulent sites blocked, billions lost
In an alarming trend that has caught the attention of cybersecurity experts worldwide, the use of artificial intelligence (AI) in investment scams has surged dramatically. Between March and October ...Read more
Scams
From awareness to accountability: Banks turn scam prevention into a core P&L discipline
Scam Awareness Week is the headline, but the real story is a structural shift: fraud prevention is moving from compliance footnote to board-level performance driver. ANZ’s 15% reduction in scam losses ...Read more
Scams
Inside ANZ’s $100m scam‑fight playbook: how banks can turn awareness into prevention
Public-service messaging won’t stop modern scammers. Australia’s banks are moving from posters to prevention, blending AI, network controls and customer friction to change outcomes. ANZ’s program ...Read more
Scams
ANZ warns Australians to stay alert for scams during end of financial year
ANZ is warning customers to remain vigilant during the end of financial year period as scammers attempt to target Australians during tax time. Read more
Scams
Trend Micro forecasts a new era of AI-driven scams by 2026
In a comprehensive report released today, cybersecurity leader Trend Micro Incorporated warns that 2026 will mark a significant turning point in the evolution of scams, driven by artificial ...Read more
Scams
Australians urged to stay vigilant as holiday scammers ramp up activity
As the festive season approaches, Australians are being warned to be on high alert for a surge in scam activities. With the increase in online shopping, travel bookings, and holiday preparations, ...Read more
Scams
Scam alert: Trend Micro warns Aussies to be vigilant as Black Friday approaches
As Australians prepare to dive into Black Friday shopping, cybersecurity firm Trend Micro has issued a stark warning about a surge in scam activities targeting eager consumers. According to a recent ...Read more
Scams
Economic stress leaves Australians vulnerable to job and financial scams
As Australians brace for the holiday season, a significant increase in job and financial scams is raising alarms. New findings from global cybersecurity leader Trend Micro Incorporated reveal that ...Read more
Scams
AI-driven investment scams explode: Millions of fraudulent sites blocked, billions lost
In an alarming trend that has caught the attention of cybersecurity experts worldwide, the use of artificial intelligence (AI) in investment scams has surged dramatically. Between March and October ...Read more
Scams
From awareness to accountability: Banks turn scam prevention into a core P&L discipline
Scam Awareness Week is the headline, but the real story is a structural shift: fraud prevention is moving from compliance footnote to board-level performance driver. ANZ’s 15% reduction in scam losses ...Read more
Scams
Inside ANZ’s $100m scam‑fight playbook: how banks can turn awareness into prevention
Public-service messaging won’t stop modern scammers. Australia’s banks are moving from posters to prevention, blending AI, network controls and customer friction to change outcomes. ANZ’s program ...Read more
Scams
ANZ warns Australians to stay alert for scams during end of financial year
ANZ is warning customers to remain vigilant during the end of financial year period as scammers attempt to target Australians during tax time. Read more
More articles
OUR PLATFORMS AND BRANDS
EVENTS AND SUMMITS
- ACE25 The Accounting Conference and Exhibition
- Australian Accounting Awards
- Australian AI Awards
- Australian Aviation Awards
- Australian Aviation Summit
- Australian Broking Awards
- Australian Cyber Awards
- Australian Cyber Summit
- Australian Defence Industry Awards
- Australian Law Awards
- Australian Law Forum
- Australian Space Awards
- Australian Space Summit
- Better Business Awards
- Better Business Summit
- Broker Innovation Awards
- Broker Innovation Summit
- Budget Summit
- Corporate Counsel Summit
- Defence & National Security Workforce Awards
- Lawyers Weekly 30 Under 30 Awards
- Commerical Finance Awards
- New Broker Academy
- Partner of the Year Awards
- Partner Summit
- REB Awards
- Rising Star Awards
- SME Bootcamp
- Women in Finance Awards
- Women in Finance Summit
- Women in Law Awards
- Women in Law Forum
PODCASTS
- Accountants Daily Podcast Network
- Australian Aviation Podcast Network
- Broker Daily Podcast Network
- Defence Connect Podcast Network
- HR Leader Podcast Network
- REB Podcast Network
- Space Connect Podcast
- The Adviser Podcast Network
- The ifa Show
- The Lawyers Weekly Show
- The Smart Property Investment Show
LEARNING AND EDUCATION
MOMENTUM MARKETS NETWORK
STAY CONNECTED
Make your nest egg grow. Register now for nestegg updates.