Cryptocurrency Theft via Wallet Drainer Malware Surpasses $494 Million in 2024, Report Finds

Technology

In 2024, cryptocurrency thefts through wallet drainer malware reached staggering figures, with losses approaching $500 million across more than 332,000 victims, according to a report from the anti-scam firm Scam Sniffer. This marked a significant 67% increase in such thefts compared to the previous year.

How Wallet Drainers Work

Wallet drainer malware deceives victims into approving malicious transactions, thereby allowing hackers to access and steal their cryptocurrency assets. These types of attacks typically involve phishing schemes that prompt users to sign off on transactions they believe to be legitimate, only for their funds to be drained.

Surge in Losses and Victim Count

Scam Sniffer’s findings show that the total amount stolen in 2024 amounted to $494 million, with the largest individual theft reaching $55.48 million. The firm also tracked 332,000 compromised wallet addresses, which was a slight increase from the prior year. Notably, only 30 of these incidents resulted in losses of over $1 million each, totaling $171 million.

Timeline of Attacks

The first quarter of 2024 saw the highest number of wallet drainer attacks, with 175,000 victims suffering losses totaling $187.2 million. In the second and third quarters, 90,000 victims were affected, and the cumulative loss reached $257 million. The fourth quarter saw a decline in both victims (30,000) and losses ($51 million), but the two largest thefts of the year, $55.48 million and $32.51 million, occurred in August and September, respectively.

Changing Trends in Malware Activity

Scam Sniffer attributed the initial surge in wallet drainer attacks to high phishing activity in the first quarter. However, after some prominent malware strains like Pink and Inferno were phased out, the overall frequency of attacks dropped in the second half of the year. Despite this reduction, the overall losses continued to climb.

Broader Trends in Cryptocurrency Theft

Scam Sniffer’s report aligns with broader trends in cryptocurrency theft. Data from Chainalysis showed that, in total, more than $2.2 billion in assets were stolen in 2024, a reflection of the growing vulnerability of digital assets. In December, the U.S. government attributed a significant $308 million theft of Bitcoin to North Korean hackers, further highlighting the increasing scale of cybercrime in the cryptocurrency space.

Conclusion

The rise in wallet drainer malware incidents in 2024 underscores the growing risks for cryptocurrency holders. While the frequency of attacks decreased in the latter half of the year, the financial impact remains severe, with losses continuing to rise. As cybercriminal tactics evolve, cryptocurrency users and industry players will need to stay vigilant and proactive in securing their assets.

Excerpts From: Ionut Arghire Article available at Source

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