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- August crypto hacks totaled $163M, up 15% from July, driven by high-value targets.
- Social engineering and phishing attacks caused the largest single losses, including $91M in BTC.
- AI-driven security and proactive measures could reduce future losses for exchanges and individuals.
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Crypto Hackers and scammers stole over $163 million in August, marking a 15% increase from July’s $142 million, according to blockchain security firm PeckShield. While losses are still down 47% compared to last year, experts warn the rise highlights a shift in hacker tactics and the ongoing need for robust security measures.
Hackers Target High-Value Individuals and Exchanges
PeckShield noted a strategic shift last month, with hackers focusing on centralized exchanges and wealthy individuals. The biggest loss came from a social engineering attack on a Bitcoiner, who lost 783 BTC ($91 million) after scammers posed as exchange and hardware wallet support.
Another significant breach hit Turkish crypto exchange Btcturk, resulting in nearly $50 million stolen from its hot wallets. This marked the second major hack for the exchange, following a similar incident in June 2024.
Despite these high-profile losses, the overall number of hacks is trending downward, with 16 incidents in August compared to 17 in July and 20 in June. PeckShield called this a “positive trend,” reflecting gradual improvements in ecosystem security.
Crypto Price Booms Fuel Hacker Activity
Crypto prices themselves are playing a role in rising losses. Bitcoin surged past $124,000 on August 14, and Ether reached $4,946 on August 24. According to Hank Huang, CEO of Kronos Research, hackers are increasingly targeting centralized wallets using sophisticated phishing and social engineering tactics to exploit operational weaknesses.
Historically, crypto exploits often spike alongside rising prices, as high-value assets create stronger incentives for attackers. While June and July saw lower overall losses ($176 million and $142 million, respectively), experts warn that without faster security upgrades, losses could climb again.
Also Read: WLFI Tokenholders Targeted in Phishing Exploit as Hackers Abuse Ethereum EIP-7702
Emerging Tech Could Improve Security
Huang highlighted that new technologies, including AI-driven security solutions, could help reduce future losses. PeckShield recommends that high-value targets, including exchanges and wealthy individuals, adopt proactive measures such as multi-factor authentication, cold storage wallets, and regular security audits.
August’s crypto hack surge underscores the evolving strategies of cybercriminals and the critical need for vigilance. As prices climb and attacks become more sophisticated, strong security protocols and emerging technologies remain essential to protect digital assets.
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Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
