The amount of cryptocurrency stolen in global hacking attacks more than doubled to a record $1 billion during the first six months of this year, compared to all of 2023, according to TRM Labs’ blockchain researchers.
By June 24, 2024, more than $1.38 billion in crypto had been pilfered, which is significantly higher compared to the amount stolen during the first half of last year, estimated at $657 million. The median theft size also increased by 50%.
This spike is likely due to the rising value of cryptocurrencies across a range, and not because there have been any major improvements in terms of security in the crypto ecosystem,” Ari Redbord, global head of policy at TRM Labs, said. He emphasised, “We have seen a significant increase in the value of various tokens—from Bitcoin to ETH (ether) and Solana—compared to the same time last year.” As cryptocurrencies have increased in value, so too have these services become more attractive targets, and this allows scammers even a longer leash with which to steal.
The crypto market has seen a general recovery since late 2022, following the collapse of Sam Bankman-Fried’s crypto exchange, FTX. For instance, Bitcoin reached an all-time high of $73,803.25 in March 2024.
Earlier this year, the biggest crypto heist occurred when Japanese exchange DMM Bitcoin lost about $308 million worth of bitcoin in what they termed an ‘unauthorised leak.’ Hacks and cyberattacks on cryptocurrency companies are common, but few have involved such large amounts; incidents involving such losses are rare.
Around $900 million in cryptocurrency was reported stolen in 2022, partially due to over $600 million being siphoned off a blockchain network tied to the Axie Infinity online game. North Korean hackers are believed to be responsible for that heist, according to the United States. The United Nations has alleged that North Korea is funding its weapons of mass destruction and missile programs through cyberattacks, but North Korea denies the charges.
Mastercard’s new security initiative
Elsewhere, Mastercard is working to completely tokenise all e-commerce transactions across Europe by 2030. This security feature, unveiled in 2014, now covers a quarter of Mastercard’s online payments globally.
Valerie Nowak, Executive Vice President of Product and Innovation at Mastercard Europe, emphasised the benefits of tokenisation, stating, “In Europe, we have seen tokenisation gaining momentum across the ecosystem; the convenience and reduced rates of fraud sell themselves. We are confident that reaching this vision by 2030 is a win-win-win for shoppers, retailers, and the card issuers alike.”
Jorn Lambert, CPO at Mastercard, added, “As physical and digital experiences continue to converge, we’re pushing the boundaries of what’s possible. We’re focused on bringing best-in-class digital services together to deliver more value, access, and safety to our customers and the end consumer.”
Consumer rights expert Martyn James told The Sun that this puts more onus on businesses to ensure the security of customer details. He stated, “With fraud remaining at record levels, anything that helps protect our cash is a good thing. But the more our security details get digitised, the more trust we have to put in the business to get things right.”
Although Mastercard’s move is meant to boost security and user experience, the findings by TRM Labs indicate that digital security issues are still prevalent in crypto. As the financial industry expands into new territories, crypto platforms and traditional payment providers will need to adapt accordingly as attackers evolve their breaches with even more sinister intent.
(Photo by GuerrillaBuzz)
See also: From recovery to dominance: Cryptocurrency’s path forward in 2024
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