Hotnews No. 95 Crypto Hacks and Scams to Watch Out for in October 2024

The world of cryptocurrencies is often described as the “wild west” of finance. This vast, untamed frontier is filled with opportunities but also poses serious risks for users. Hacks and scams represent the two most significant threats to those looking to get involved in the crypto space. Hacks exploit technological vulnerabilities, such as breaches in exchange or wallet security, while scams rely on fraudsters convincing victims to part with their money through fake projects or offers that seem too good to be true.

Why is the crypto world so risky? The anonymity provided by blockchain, a lack of regulation, and complex technologies create a favorable environment for fraudsters. It can often be challenging to trace crypto transactions, and many users are still inexperienced, making them easier targets.

Here are eight types of crypto scams and threats to watch out for in October 2024:

1. Phishing Attacks: These attacks are fraudulent attempts to steal sensitive information by posing as trustworthy entities. A recent scam targeting users of Spark Wrapped Ether (spWETH) resulted in a loss of $32.43 million through fake “permissions.” To protect yourself, verify the sender’s identity, avoid unsolicited links, and use multi-factor authentication.
2. Fake Airdrops: These scams offer free tokens to lure users into revealing their private keys. In one incident in September 2024, the official Decentraland account was hacked and promoted a fake MANA airdrop. Only engage with verified airdrops and be wary of unsolicited messages.
3. Crypto Ponzi Schemes: These investment scams promise high returns funded by new investors. For instance, David Carmona was sentenced to prison for running IcomTech, a Ponzi scheme disguised as a trading platform. Avoid schemes that promise guaranteed returns and thoroughly research companies before investing.
4. Exploits of Smart Contracts: Hacks that exploit vulnerabilities in smart contract code. In September 2024, the Penpie platform lost $27 million due to a flaw in its reward system. Invest only in projects that have undergone rigorous audits and stay informed about potential vulnerabilities.
5. Crypto Exchange Hacks: Attacks on exchange security often lead to the theft of funds. In October 2024, BingX lost $44 million due to a hack associated with the Lazarus group. Use cold storage for significant amounts and enable two-factor authentication on your accounts.
6. Money Mule Scams: These scams involve criminals recruiting individuals to transfer stolen funds. In September 2024, Russian authorities arrested over 100 individuals linked to Cryptex for laundering millions. Never agree to transfer money for others without verifying the source and legality of the funds.
7. Celebrity Impersonation Scams: Fraudsters use the personas of well-known public figures to trick victims into sending money, typically through fake promotions or giveaways. For example, in September 2024, a deepfake of Tim Cook was used in a scam during the launch of the iPhone 16. Always verify promotions through official channels and do not send money without prior verification.

Given all the above, it is crucial to stay informed and vigilant to protect yourself from scams and hacks in the world of cryptocurrencies.

Your DefendMe Team