Pig butchering scams have become a major concern in the world of cryptocurrency, with a staggering $3.6 billion in losses reported in 2024 alone. According to a recent report by web3 security firm Cyvers, this type of fraud scheme has emerged as the most significant threat to investors, surpassing all other forms of crypto scams.
The method of pig butchering scams involves grooming victims over an extended period, convincing them to make large investments in fraudulent crypto platforms. These scammers often use dating apps and social media platforms to create fake profiles and build trust with their targets. Once the victims are convinced to invest, the scammers disappear with the funds, leaving the victims with significant financial losses.
Cyvers’ report revealed that over 150,000 addresses and 800,000 transactions were linked to pig butchering scams, highlighting the scale of the problem. The FBI also estimated that $3.96 billion was lost to similar schemes in 2023, indicating a worrying trend of increasing losses due to these scams.
In response to the rise in pig butchering scams, Cyvers recommended various measures to combat the fraud. These include increased user education, enhanced wallet security, and stricter regulations for crypto platforms. The firm also stressed the importance of real-time monitoring and advanced threat detection systems to prevent further losses.
In addition to pig butchering scams, the report also highlighted a rise in cyber threats in 2024, resulting in $2.3 billion in losses across 165 incidents. Ethereum was the primary target for scammers, with access control breaches leading to $1.9 billion in losses. Smart contract exploits and address poisoning incidents also contributed to the overall losses.
Despite the increase in cyber threats, efforts to combat fraud managed to recover $1.3 billion in stolen funds, thanks to on-chain investigators and bug bounty programs. The report noted that the first quarter of the year saw the highest number of incidents, while the third quarter recorded the largest financial losses.
Some significant incidents included a $305 million breach of DMM Exchange, a $235 million hack targeting WazirX, and $52 million in losses suffered by BingX. Access control incidents accounted for 81% of the total losses, despite making up only 41.6% of reported cases.
Overall, the rise in pig butchering scams and other cyber threats underscores the need for increased vigilance and security measures in the cryptocurrency space. Investors are urged to stay informed, exercise caution when investing, and implement robust security protocols to protect their assets from fraudsters.