Close to $3bn lost to crypto scams in 2023

According to PeckShieldAlert a firm that specializes in blockchain security, more than $2bn was lost to various crypto scams last year (2023). The crypto space is an interesting, and ever-evolving environment that should be threaded with caution. With lots of new projects and solutions, the opportunity to accumulate wealth has never been easier. So too are the many dangers of getting scammed as this report illustrates.

The PeckShieldAlert infographics show that $2.61B was lost from hacking of various crypto platforms. This includes the assets of customers that were exposed through the unauthorized intrusion. Although the amount lost to scams are lower than in 2022 and previous years, the figure which is still significant suggests that the possibility of losing assets in the crypto space is still very high.

Hackers and scammers often target Defi projects because they seem to have made lots of breakthrough in it. The report shows that more than half of the hacks and scams happened in the defi space. With so many projects springing up in the defi space, it is not hard to agree with the report.

The worst exchanges to be hit by scams and hacks in 2023 are listed in order of volume of funds lost. Mixin is at the top of the chat. hacking of this platform resulted in the loss of more than $200M worth of assets. Next in the second position is Euler labs. The breaching of Euler labs resulted in the loss of $197M worth of assets. Poloniex is in the third position with $125M lost in hacks to that platform. Other popular names that make up the top 10 includes Atomic wallet, CoinEx and others. Take a look at the chat below:

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Read on and check out another report that shows how scams and hacks are trying to take over the crypto space.

Binanace Co-founder alert users to scam attempt.

Yi He, Binance Co-founder has warned users, followers and the entire crypto community of scammers that are using her identity on LinkedIn to defraud unsuspecting victims. Yi has an account on LinkedIn but explained that she has long lost access to the account.

Scammers now send out proposals for coin listing on Binance using here defunct LinkedIn profile. They pose as the co-founder and try to hold discussion with crypto project founders over the possibility of getting listed on Binance. Yi even included a screenshot of a sample scam conversation that was purported to have originated from her. Take a look below:

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Yi warned users to beware of such scams that were done with her profile. She explained that she is not in charge of any discussions regarding project listings on Binance. Hence, everyone needs to beware and avoid any such interactions as it could lead to loss of funds for project owners.

Best practices on how to avoid being scammed

As the above reports show, scams are prevalent in the crypto space. Users need to be especially careful in order not to become victims in any way. With defi account for more than 60% of scams and hacks, interactions in that space need to be done with the utmost caution. The following recommendations are always in order:

• Do not click phishing links: Scammers always try to trick victims into submitting their keys through phishing websites. Because these websites look exactly like the original, unsuspecting victims might login and effective submit their asset credentials in the process.

It is important not to click any links that look suspicious. Whether through email or other means, avoid clicking those links. Before you log in to any crypto platform, ensure that you double-check the URL. This is a basic and effective way to make sure that you are in the right place.

• Check Social Media Profiles: If someone is presenting themselves as a representative of a crypto project, first do a background work on the account to verify their identity. Whether it is an email account or social media account, hackers are skilled at cloning these to resemble the original closely. You might unknowningly be discussing sensitive business details with a criminal.

As with the Yi example above, hackers often look for abandoned accounts to exploit. They might still register accounts with details of a real account such as profile names or images. These are things you should carefully check before getting involved with this individual.

• Always DYOR: This is important because a background search of teams and profiles easily reveals the identities of criminals. Even projects that look amazing in the surface might be scams waiting to hit you hard and escape with your prized assets. So take you time to dig deep. Check official documentation about the project such as their whitepapers. Look at the team and their history in the sector.

It is worth the time to wait and do the appropriate ground work to determine who or what you are dealing with. Always give any project time and find out the value they purport to offer. This way, you are able to avoid falling into the hand of criminals.

Conclusion

The crypto space is a place to build wealth through accumulation of digital assets. It is equally a space where scams and criminals have found it easy to operate and hide their identity. You do not want to be the next victim - the next statistic. Only by being extremely careful will you excel in the crypto space.

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